Our Sites - Fairfax Media

Macquarie Bank Analyst Day
14 June, 2006
The story so far…
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1999
2000
2001
2002
2003
2004
2005
2006
Launched
Introduced fees
FindSomeone
Old Friends
Trade Me Motors
(Fastest growing company)
Trade Me Property
Trade Me Jobs
Very strong overall audience growth
Trade Me Group: Unique Visitors
Combined Unique Visitors per month
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
May-06
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
Sep-05
Aug-05
Jul-05
Jun-05
May-05
Apr-05
Mar-05
Feb-05
Jan-05
Dec-04
Nov-04
Oct-04
Sep-04
Aug-04
Jul-04
Jun-04
May-04
Apr-04
0
Auctions
The Auction Business
675,000 items for sale
in 22 Categories
45% New goods
30% sales are local
25% Buy Now
May-06
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Active users - bid or listed in previous 12 months
Nov-05
Oct-05
Sep-05
Aug-05
Jul-05
Jun-05
May-05
Apr-05
Mar-05
Feb-05
Jan-05
Dec-04
Nov-04
Oct-04
Sep-04
Aug-04
Jul-04
Jun-04
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Active Users up 43% YOY
Listed or Bid in previous 12 months
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
May-06
Apr-06
Unique Listers
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
Sep-05
Aug-05
Jul-05
Jun-05
May-05
Apr-05
Mar-05
Feb-05
Jan-05
Dec-04
Nov-04
Oct-04
Sep-04
Aug-04
Jul-04
Jun-04
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Sellers per Month Up 80% YOY
Unique Listers
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
May-06
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
Sep-05
Aug-05
Jul-05
Jun-05
May-05
Apr-05
Mar-05
Feb-05
Jan-05
Dec-04
Nov-04
Oct-04
Sep-04
Aug-04
Jul-04
Jun-04
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Dec-03
Nov-03
Oct-03
Sep-03
Aug-03
Jul-03
Jun-03
May-03
Apr-03
Mar-03
Feb-03
Jan-03
Gross Merchandise Sales
and Income follows GMS
Diversified by category
and Sale Type
Home & living
20%
GMS by Category
Other
27%
Motors
12%
Fixed Price Offer
16%
Computers
7%
Buy Now
26%
Auction
58%
Business, farming &
industry
7%
Sports
11%
Clothing
8%
Electronics & photography
8%
Value drivers in Auctions
Fee model:
• Success fees charged on successful sale
• Optional premium fees
Value drivers:
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Sellers (& buyers)
Sales per seller
Average sale price
Fees
Strong position in eCommerce
Page Impressions: Shopping category
Source: Nielsen NetRatings
Trade Me 774m
bargainshopping.co.nz
ferrit.co.nz
mags4gifts.co.nz
farmers.co.nz
realgroovy.co.nz
shopnewzealand.co.nz
healthy.co.nz
stuffonsale.co.nz
newswire.co.nz
gpstore.co.nz
trademe.co.nz
safetrader.co.nz
all others: 3m
smokecds.com
designerexposure.com
Ju
n0
Ju 5
lAu 05
gSe 05
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O 5
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N 05
ov
De 05
c0
Ja 5
n0
Fe 6
bM 06
ar
-0
Ap 6
rM 06
ay
-0
6
moviestars.co.nz
interflora.co.nz
shopping.xtramsn.co.nz
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Defensibility of market position
• Winner take all
– Buyers need sellers and vice versa
– Trader feedback equals trust
• Geographically constrained
• “Handbag” marketing strategy
• Hedged against economic downturn
• No “Craigslist” risk
– We do local and classifieds
40,000 cars for sale today
Dealers are 66% of listings:
• Subscription model
• Classifieds only
Privates are the rest:
• $24.95 per listing
• 50% auctions
Growth opportunities:
AutoTrader, Turners
May-06
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
Sep-05
Aug-05
Jul-05
Jun-05
May-05
Apr-05
Mar-05
Feb-05
Jan-05
Dec-04
Nov-04
Oct-04
Sep-04
Aug-04
Jul-04
Jun-04
Motors listings up 57% YOY
Private Motors Listings
25,000
Price lifted
to $24.95
per listing
20,000
15,000
10,000
5,000
0
Motors – competition
Domestic unique visitors – Nielsen Netratings
1000000
900000
800000
700000
600000
Trade Me
AutoTrader
500000
400000
300000
200000
100000
0
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-06
May-06
16
21,000 properties today
• Direct listings
• Office-level subscriptions
Have also signed 3 major
franchises so far
May-06
Apr-06
Mar-06
Feb-06
Jan-06
Dec-05
Nov-05
Oct-05
25,000,000
Sep-05
Aug-05
Jul-05
Open2view
Jun-05
15,000,000
May-05
Apr-05
Mar-05
Feb-05
Jan-05
Dec-04
Nov-04
Oct-04
Sep-04
Realenz
Aug-04
Jul-04
Jun-04
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Property Competition
Page Views
30,000,000
Trade Me
20,000,000
Harcourts
10,000,000
5,000,000
0
Listings Grow Organically and Step
with Franchise-Wide Deals
Concurrent Property Listings
25000
First National
May 06
20000
15000
Professionals
Dec 05
10000
5000
0
Ray White
Oct 05
Display advertising
Advertising
Advertising
Display Advertising
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10-12% of total income
We are leading on price
Serve over 60% domestic pages
Triple digit growth
NZ lagging poorly behind spend alignment
with media consumption habits
– Australia has over $600m online
– NZ has just $44m
Quality end of market
Subscription model
Driven by Trade Me
Summary
• Large, diversified & defensible position
• Monthly revenues up 30%+ since acquisition
– On-track for stated earnings of $45m March Year.
• Jobs #1 focus
• Future growth opportunities significant in all segments
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Auctions
Motors
Property
Jobs
eCommerce
Display advertising
• Trade Me sales currently <1% of retail sales
• Other opportunities await
Questions?