REA Group Ltd
1HY11 - Analyst and
Investor Presentation
February 2011
www.rea-group.com
REA Group – Market Leader
REA operates 13 property websites around the world
We aim to be globally known as the leading, most
innovative digital marketing company for real estate; and
the first choice for both advertisers and consumers in the
markets we serve
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Key Highlights of Our Performance for First Half 2011
REA Overperformance of ASX 200 Index(1)
Continued Profitable Growth
140
130
120
110
100
90
80
REA
1. Source: Yahoo Finance - http://au.finance.yahoo.com/, Jan 2011
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ASX200
Significant Levels of Innovation Continue Across the
Business to Drive Performance (1HY2011 v 1HY2010)

25% Revenue growth and 28% EBITDA growth

Property listings up by 17% to 1.56m

Paying Agents up by 14% to 22,172 for the Group

22% Revenue growth in the core market of Australia

135% Revenue growth in Italy

26% increase in Paying Agents in Italy

Innovation in Marketing recognised by Industry

Continued IT innovation :
new casa.it website
New Homes tab on realestate.com.au
 iPhone Application launched

Continued Outperformance of the ASX 200

Increased return to shareholders – Half Year Dividend

Carbon Neutral and Oekom Accredited
1. Source: Yahoo Finance - http://au.finance.yahoo.com/ , Jan 2011 for calendar year 2010
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(1)
Brand and Country Performance
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Australian Revenue Growth of 22% to $103m
Dec 10
9,688
16% YOY Growth
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realestate.com.au and realcommerical.com.au Continue
to Lead the Australian Market
Gap > 4m
Key Facts:(1)
Key Facts:
• #1 Australian residential real estate site
• #1 Australian commercial real estate site
• Residential agent revenues up by 21% to $67.3m
• Commercial Agent revenues up by 23% to $11.2m
• Residential depth revenues 44% of agent revenues (2010: 39%)
• Paying Subscriptions increase to 1478 (10% growth)
• Paying Subscriptions increase to 8950 (4% growth)
• Realcommercial.com.au had 3.9 times more Unique Browsers that its
(1)
• Partnerships with eBay and Yahoo7!
nearest competitor in December 2010 (increasing from 2.7 times more in
• UBs increased to a record 7.5m increasing the gap with Domain by 22.8%
Dec 2009)
(2)
on prior month (Jan 2011)
1.
2.
Comparison period is 1HY2011 to 1HY2010 unless otherwise indicated
Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites, Jan 2011
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(2)
REA Australia Potential Brand Exposure Increases
Against Number Two Portal - Dec 2010
Source: Nielsen Online, Market Intelligence, Total Traffic for Audited Sites, Dec 2010
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The Business Model
Valued by Consumers Valued by Agents
Entertain
Valued by Vendors
Win New Listings
Cost Effective
Engage
Sell Houses
Predictable
Search/Find
Build Rent Roll
Evaluate
Sales
Productivity
Analyst presentation - REA – 1HY11 results
Provable
9
Enhancement of our Product Suite to Support the
Business Model and Customer Satisfaction
Valued by Consumers
Valued by Agents
Valued by Vendors
Suburb Sponsorship
Our Network
Premiere Property
Premier Property
Customer Satisfaction Focus is Supported By Improved Customer Call Centre and a
Professional Sales Team to Understand Our Customer Needs
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The Australian Business Continues to Improve Site
Traffic, Usage and Engagement
Syndication and co-branding:
REA identifies new strategic partnerships to
support our strategy
Social media campaigns:
The Fresh Start Project won REA the Internet
Advertising Bureau (IAB) Creative Showcase
(Dec 2010)
Spring Campaign Advertising:
Kicked off in September and covered TV
commercials, outdoor and online advertising
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REA Australia’s Media Business Breaks New Ground
• Media revenues up by 27% to $24.6m in 1HY11
• One of the largest digital display publishers in Australia by
revenue
• Brings new functionality in “New Homes” tab
MINI’s Floor ad on realestate.com.au
“We have been overwhelmed with the results and level
of interest the campaign has generated in just one day
with a click through rate of over 8 per cent(1), well
above industry average. As a result, we have managed
to increase traffic to our site by a whopping 1700 per
cent – a phenomenal result for a reasonable
investment(1),” MINI’s Marketing Manager Chris Brown.
1.
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Eyeblaster Research Q1 2009 to Q4 2009, Australia and New Zealand market.
casa.it Goes from Strength to Strength
Paying Agents- Italy
12,000
10,000
8,000
6,000
4,000
11,531 –as at DEC 10
YOY Growth 26%
2,000
0
Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10
*
(1)
1. Source: Nielsen Online, Site Census, Dec 2010
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Plus the Arrival of casa.it Website
 A simplified Home Page
 Fast and easy search
 NEW – refined search – on one page!
 NEW – enhanced Map results View
 NEW – enhanced Gallery results View
 NEW Feature – Enhanced Customer reporting
 NEW Product – Feature Property
 NEW – Compare it!
 NEW – My Casa
 NEW – Mobile site
casa.it 1.0
Analyst presentation - REA – 1HY11 results
casa.it 2.0
14
International – Significantly Improved Performance
Luxembourg
• #1 in Greater Luxembourg
• Online, TV, Data Services and Print
• Achieved break-even in FY10
Hong Kong
• Only independent English magazine,
website & eMagazine dedicated to property
• Chinese-language site launched July 2010
(1)
(1)
1. Source: Nielsen Online, Site Census, Dec 2010
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Financial Data
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REA Group’s Strong Growth Record
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REA Group EBITDA Continues To Strengthen
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Strategic Themes for FY11
1. Engage with consumers
2. Develop an active real estate community
3. Offer customers more flexible products and price offers
4. Build operational excellence
5. Create the team and culture we want
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Welcome to REA Group’s New Corporate Website
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Disclaimer
The material herein is a presentation of non-specific background information
about the Company’s current activities. It is information given in summary form
and does not purport to be complete. Investors or potential investors should
seek their own independent advice. This material is not intended to be relied
upon as advice to investors or potential investors and does not take into
account the investment objectives, financial situation or needs of a particular
investor. These should be considered when deciding if a particular investment
is appropriate.
Unless otherwise indicated, information contained within this report is internal
REA Group information and data.
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