2017 Global Real Estate Portal Report

2017 Global Real Estate
Portal Report
September 2017
Prepared by Mike DelPrete

Global Real Estate Portal Report 2017
A global snapshot
Growth and competition
Portal revenue streams
Driving premium revenues
Ancillary revenue streams: Lead generation and mortgages
A deeper look at Zillow
The U.S. market: Zillow vs. Move
Competing strategies in the U.K.: Rightmove and Zoopla
Portal homepage analysis
Themes in product development
Five years of M&A activity
Exec team structures

A global snapshot
This report looks at over a dozen of the
top real estate portals from around the
globe.
This work requires data, so the analysis
naturally focuses on portals where data is
available (typically public companies).
Looking at the best in the world gives us
a clear window into best practices,
emerging trends, growth strategies, and
common insights and challenges.
I am the former head of strategy at a top
portal, and have spent the past two years
independently focused on the world of
real estate portals.

Real estate classifieds are big businesses around
the globe, in terms of revenue and profit (EBITDA).
Zillow
ZILLOW
Rightmove
RIGHT
MOVE
SeLoger
Trade Me
REA
IS24
SELOGER
IS24
REA
TMP
Move
Domain
Hemnet
Immoweb
DOMAIN
HEMNET
IMMOWEB
iProperty
iPROPERTY
MOVE
IS24
MoveLEGEND
REVENUE
EBITDA

There are clear leaders in terms of overall revenue
and profitability.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
REA Group Immobilien
Scout24
Rightmove SeLoger Domain Zoopla
Property
Services
Zillow
Group
Immoweb Trade Me
Property
Hemnet Move
Millions(USD)
Full Year Financial Comparison
Revenues EBITDA
www.mikedp.com

Yearly revenue growth varies significantly, with
impressive upside even in mature markets.
6.7%
7.3%
8.5%
9.0%
10.3%
14.0%
14.5%
15.9%
18.8%
31.3%
39.0%
45.0%
55.0%
0% 10% 20% 30% 40% 50% 60%
Immobilien Scout24
Trade Me Property
Zoopla Property Services
Domain
SeLoger
REA Group
Rightmove
Immoweb
Move
Zillow Group
Hemnet
Ingatlan
Otodom
Year on Year Revenue Growth
Struggling
#2’s in their markets
Global leaders
U.S.
Under new management
Small base

0% 10% 20% 30% 40% 50% 60% 70% 80%
Zillow Group
iProperty
Hemnet
Domain
SeLoger
Immobilien Scout24
REA Group
Trade Me Property
Immoweb
Rightmove
EBITDA Profit Margins
Dominant, well-run portals are incredibly
profitable. Zillow is the outlier, investing to grow.

Another way to look at profitability is how much
revenue each portal collects per $100 spent.
Breakeven
$0 $50 $100 $150 $200 $250 $300 $350 $400 $450
Zillow Group
Hemnet
Domain
SeLoger
Immobilien Scout24
REA Group
Trade Me Property
Immoweb
Rightmove
Revenue Collected per $100 Spent

Organizational efficiency is variable, as measured
by revenue per employee.
$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000
Zillow Group
Trade Me Property
REA Group
Move
Domain
Hemnet
Immoweb
Immobilien Scout24
Rightmove
Revenue per Employee
Nearly double the
lower end of the
spectrum.

$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Rightmove Zillow IS24
Revenue per Employee
2013 2014 2015 2016
www.mikedp.com
The growth of revenue per employee is varied,
with some slowing while others accelerate.
Flat
Slowing
Accelerating
Rightmove saw a big jump in employees during FY16, while IS24’s employee
count has been dropping since 2015 (from 681 to 631 in Q2 2017).

Revenue per capita for the major global portals
varies based on market maturity and structure.
$0 $5 $10 $15 $20 $25
iProperty
Otodom
Ingatlan
Move
Hemnet
SeLoger
Zillow Group
Immoweb
Immobilien Scout24
Rightmove
Trade Me Property
Domain
REA Group
Revenue (USD) per person
Revenue per Capita
$21.60
$0.08

Revenue per capita is much higher in some
markets due to structural differences.
$0 $5 $10 $15 $20 $25
iProperty
Otodom
Ingatlan
Move
Hemnet
SeLoger
Zillow Group
Immoweb
Immobilien Scout24
Rightmove
Trade Me Property
Domain
REA Group
Revenue per Capita
In Australia and New Zealand, home sellers
pay their own marketing expenses,
resulting in much higher revenues per
listing relative to total population.

Revenue per capita in emerging and developing
markets is well below more mature markets.
$0 $5 $10 $15 $20 $25
iProperty
Otodom
Ingatlan
Move
Hemnet
SeLoger
Zillow Group
Immoweb
Immobilien Scout24
Rightmove
Trade Me Property
Domain
REA Group
Revenue per Capita
$0.08 – Southeast Asia
$0.29 – Poland
$0.80 – Hungary

Generally, market-leading portals have between
1.5x – 3x the traffic of the runner-up portal.
3.0x 3.0x
2.7x
2.5x 2.4x
2.2x
1.7x
0.0x
1.0x
2.0x
3.0x
4.0x
US Poland Belgium NZ AU UK GER
Global Portal Traffic Leads
www.mikedp.com

The larger the traffic multiple, the stronger the
competitive position (with more pricing power).
Yearly revenue growth of the leading portal is roughly
correlated to having a larger traffic lead.
3.0x 3.0x
2.7x 2.5x 2.4x 2.2x
1.7x
0%
10%
20%
30%
40%
50%
60%
0.0x
1.0x
2.0x
3.0x
4.0x
US Poland Belgium NZ AU UK GER
Global Portal Traffic Leads
Traffic Lead Yearly Revenue Growth
www.mikedp.com

Globally, runner-up portals collect about 40% of
the revenue of the leading portals in each market.
0%
10%
20%
30%
40%
50%
$0
$100
$200
$300
$400
$500
$600
Australia (FY17) U.K. (FY16) U.S. (Q2 17) Ger (Q1 17)
Millions(USD)
Relative Revenues for Runner-up
Portals
Top Portal Runner-up Portal Revenue Ratio
www.mikedp.com

Growth across three of Europe’s leading portals
has been predictable and steady.
156
80
108
285
128
244
0 €
80 €
160 €
240 €
320 €
IS24 SeLoger Rightmove
Revenue Growth Across Europe
2011 2012 2013 2014 2015 2016
www.mikedp.com

And when we throw Zillow into the mix, we see
what a growth monster it is!
156
80
108 99
285
128
244
720
0 €
200 €
400 €
600 €
800 €
IS24 SeLoger Rightmove Zillow
Revenue Growth Across Europe
2011 2012 2013 2014 2015 2016
www.mikedp.com
Wow!

ARPA growth is consistent between portals,
driven from price rises and premium offerings.
$0
$200
$400
$600
$800
$1,000
$1,200
2012 2013 2014 2015 2016
Average Monthly Revenue per
Advertiser (USD)
Zoopla Rightmove Zillow Group
Immobilien Scout24 SeLoger Immoweb
www.mikedp.com
Up around 12%-15% each year

But REA Group in Australia is a world-leader,
effectively in a league of its own.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2012 2013 2014 2015 2016
Average Monthly Revenue per
Advertiser (USD)
Zoopla Rightmove Zillow Group
REA Group Immobilien Scout24 SeLoger
Immoweb
www.mikedp.com

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Rightmove REA Group Trade Me
Property
Zillow Scout24 Zoopla
% Revenue from Agents
www.mikedp.com
Major portals generate most of their revenue
through real estate agents.
Other revenue sources include direct listings, display ads, new
construction, data sales, and ancillary revenue streams.

The more revenue that comes from agents, the
more difficult it is for the portal to disrupt them.
0% 20% 40% 60% 80% 100%
Zillow's Revenue Sources
Premier Agent Mortgages Other RE Display
0% 20% 40% 60% 80% 100%
Zoopla's Revenue Sources
Agents New Homes Other Property Comparisons
0% 20% 40% 60% 80% 100%
REA Groups's Revenue Sources (AU)
Agents Media display & other

Many agents in the U.S. are worried Zillow will
disrupt them, but it’s clearly not diversifying.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Zillow's % Revenue from Agents
www.mikedp.com
It is exceedingly unlikely that Zillow
would put 70 percent of its revenue at risk.

However, Zoopla in the U.K. is has clearly
diversified its revenue sources.
0%
10%
20%
30%
40%
50%
60%
70%
80%
FY14 FY15 FY16 H1 17
Zoopla's % Revenue from Agents
www.mikedp.com
While Zoopla is better positioned in terms of revenue
diversification, agents are still a big customer.

Driving premium revenues
Premium = agents paying more for
enhanced exposure. They typically
compete against each other for
enhanced placement of their
listings and agent branding.
Premium revenues are above and
beyond subscription revenues for
listings.

Revenue from premium features varies wildly at
different portals.
0%
20%
40%
60%
80%
100%
REA Group Domain Rightmove Trade Me IS24
Percentage of Revenues from Premium
www.mikedp.com
Just
starting

Rightmove shows a steady drive towards higher
customer spend each month.
Driven by price rises and
premium feature adoption.

$55 $56
$93 $95
$407
$482
$0
$100
$200
$300
$400
$500
$600
$700
FY2016 FY2017
Millions(AUD)
REA Group's Australian Revenue
Subscription revenue Media display & other Listing depth revenue
www.mikedp.com
All of REA Group’s revenue growth is coming from
premium and depth products.
Flat

REA has mastered the art of the upsell, pushing
customers to more expensive premium products.

Premium products include bigger photos, better
placement, and prominent agent branding.

Pricing for REA’s premium products in Australia’s
major cities can be…quite expensive.
Remember, the average revenue per
advertiser is upwards of $3,000 AUD.

Ancillary revenue streams: Lead generation and
mortgages
Lead generation is one of the largest
ancillary revenue streams for real estate
portals.
This is especially the case with world
leaders in mature markets.
#1 in U.S. #2 in U.K. #1 in Australia

A leader in the space, Zillow has consistently
grown its mortgage lead gen revenues.
2016 Revenue
contribution
Mortgages revenue

Mortgage revenues grew while the number of
leads dropped, the result of an improved product.
Higher quality leads = more valuable leads
$44
$71
46.8
29.9
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
0
20
40
60
80
FY15 FY16
Millions
Zillow's Mortgage Business
Revenue Leads ARPL
www.mikedp.com
Average
Revenue
Per Lead
(ARPL)

Zoopla’s comparison business continues to grow
both revenues and leads, while driving ARPL up.
£80
£111
24.8
30.3
£0.00
£1.00
£2.00
£3.00
£4.00
£5.00
0
30
60
90
120
FY15 FY16
Millions
Zoopla's Comparison Business
Revenue Leads ARPL
www.mikedp.com

$2.37
$4.76
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
FY15 FY16 HY17
Average Revenue per Lead (USD)
Zillow Zoopla
www.mikedp.com
Both businesses are improving the average
revenue per lead, but it’s still a volume game.
Up 152%
Up 14%

In Australia, REA Group acquired a majority stake
in mortgage broking business Smartline.
REA Group announced
in June 2017 that it
had taken an 80%
stake in mortgage
broking business
Smartline for $67
million AUD.

Zillow REA Group
REA Group is projecting mortgage revenues as a
percent of total on par with that of Zillow.
8% 5%
$71 million in FY 2016 $26-$30 million in FY 2018
(Company estimates)

The leaders in the field offer deep integrations
across their sites, critical to their success.

Zillow’s expenses have consistently outstripped
revenues. It’s investing for growth.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2012 2013 2014 2015 2016 2017F
Millions
Zillow's Yearly Revenue and Expenses
Revenue Expenses

$0
$50
$100
$150
$200
$250
$300
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Millions
Zillow's Quarterly Revenue and Expenses
Revenue Expenses
Expenses came in line with revenues for three
quarters, but are back up in Q2 2017.

After some bumps, quarterly revenues are
consistently rising.
12.0%
1.3%
8.6%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
$0
$50
$100
$150
$200
$250
$300
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Millions
Quarterly Revenue Growth
Revenue Quarterly Growth
www.mikedp.com

Zillow’s growth is being driven by its premier
agent program.
$0
$100
$200
$300
$400
$500
$600
$700
FY12 FY13 FY15 FY16
Millions
Zillow's Revenue Sources
Premier Agent Other Mortgages Display
www.mikedp.com

The premier agent program pits agent against
agent, delivering leads to the highest bidders.

Zillow’s ancillary revenue lines are seeing
mortgages gain while display falls away.
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
FY12 FY13 FY15 FY16
Millions
Zillow's Ancillary Revenue Growth
Mortgages Display
www.mikedp.com
Mortgages product = deeper integration.

Zillow’s Adjusted EBITDA does not paint an
accurate picture of the business’s performance.
Zillow’s Adjusted EBITDA excludes stock-based compensation
(SBC) expense. Excluding this cost paints an inaccurate
picture of the business’s performance and profitability; my
analysis adds it back in.
“If compensation isn't an expense, what is it? And, if real and
recurring expenses don't belong in the calculation of
earnings, where in the world do they belong?”
– Warren Buffett
Tech giants like Amazon and Facebook started including
stock-based compensation in their results. For more, check
out: Amazon, Facebook Admit Stock Compensation Is A
Normal Cost.

To arrive at a true EBITDA figure for FY16, I’ve
backed out litigation expense and included SBC.
$14.8
$130.0
$106.9
$37.9
$0
$40
$80
$120
$160
Adjusted EBITDA Back out litigation
expense
Stock-based
compensation
EBITDA
Adjusted EBITDA -> EBITDA

Zillow has a high SBC component compared to
global peers (but not unusual for U.S. firms).
0%
2%
4%
6%
8%
10%
12%
14%
Zillow Group Zoopla Rightmove Immobilien
Scout24
REA Group
Stock-based Compensation as % of
Revenue
www.mikedp.com
Down from
16% in FY15

How big can Zillow become? It likes to use the
following chart in investor presentations.
The value of a business shouldn’t be tied to the overall
commission pool, but rather how well the business is able
to provide value and monetize its customers.

Zillow’s revenue as a percentage of the total
commission pool is indeed small…
10.6%
6.0%
5.5%
4.3%
2.9%
1.4%
0%
2%
4%
6%
8%
10%
12%
REA Group Rightmove Zoopla Immobilien
Scout24
Trade Me Zillow
Revenue as % of Commission Pool
www.mikedp.com

…but its enterprise value is a whopping 161 times
greater than its non-adjusted EBITDA.
13x 18x
8x 7x
21x 24x 21x
161x
0x
40x
80x
120x
160x
200x
REA Group Rightmove Zoopla Zillow
Enterprise Value Multiples
EV/Revenue EV/EBITDA
www.mikedp.com

$0 $5 $10 $15 $20 $25
iProperty
Otodom
Ingatlan
Move
Hemnet
SeLoger
Zillow Group
Immoweb
Immobilien Scout24
Rightmove
Trade Me Property
Domain
REA Group
Revenue per Capita
Zillow’s revenue per capita is in line with global
peers, with modest upside. How big can it get?
Peer group excludes Australia and New
Zealand, where home sellers pay their own
marketing (resulting in overly high ARPA),
and emerging markets.
If Zillow’s revenue per capita increased to
$4, its revenues would be $1.25 billion.

$0
$50
$100
$150
$200
$250
$300
Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
Millions
U.S. Portal Revenue Growth
Zillow Realtor.com
www.mikedp.com
Both U.S. portals are growing revenues, but Zillow
is growing faster (and from a larger base).
Up 58%
Up 24%

Move revealed adjusted EBITDA in January-March
2017, showing the exact same margin as Zillow.
$100
$246
$22
$55
$0
$100
$200
$300
Move Zillow
Millions
Q1 2017 Results
Revenue Adjusted EBITDA
22% margin
22% margin

Zillow is maintaining a strong lead in traffic over
Realtor.com, and it’s not budging.
3.1x 3.2x 3.1x 3.2x 3.1x 3.2x 3.0x 3.1x
0x
1x
2x
3x
4x
0
40
80
120
160
200
Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17
AverageMonthlyUniques(millions)
Top Portal Traffic Lead in U.S.
Traffic Lead Zillow Realtor.com
www.mikedp.com

Competing strategies in the U.K.: Rightmove and
Zoopla
More than any other real estate portals in
the world, Rightmove and Zoopla have
adopted divergent strategies in the U.K.
Rightmove is narrowly focused and Zoopla
is broadly diversified. But both are
succeeding in different ways.

Zoopla’s strategy is geared towards diversification
and creating a “huge cross-sell opportunity.”

While Rightmove is solely focused on being the
best marketplace to advertise property.

Rightmove has delivered consistent revenue
growth, but Zoopla is making impressive gains.
£0
£50
£100
£150
£200
£250
£300
2013 2014 2015 2016 2017F
Millions
Rightmove vs. Zoopla Revenue
Rightmove Zoopla
www.mikedp.com

Rightmove is growing revenue through high-
margin portal advertising products.
0%
10%
20%
30%
40%
50%
60%
70%
80%
£0
£50
£100
£150
£200
£250
2013 2014 2015 2016
Millions
Rightmove's Revenue Growth
Portal New Homes Other EBITDA %
www.mikedp.com

While Zoopla’s growth is coming from ancillary
revenue streams with lower profit margins.
0%
10%
20%
30%
40%
50%
60%
£0
£40
£80
£120
£160
£200
£240
2013 2014 2015 2016
Millions
Zoopla's Revenue Growth
Portal Other Property Comparison EBITDA %
www.mikedp.comwww.mikedp.com

52
13
28
57
30
111
£0
£40
£80
£120
£160
£200
Portal Other Property Comparison
Millions
Zoopla Revenue
2013 2014 2015 2016
www.mikedp.com
Zoopla’s property portal revenue is effectively flat.
The core portal business is barely growing.
New
revenue
streams
Ancillary
Flat

Partially a result of inventory levels never fully
recovering since OnTheMarket’s entry in 2015.
Used with permission from Exane BNP Paribas Research
Zoopla’s Inventory Levels

Zoopla diversified by spending approximately
£450 million on acquisitions since 2015.
Company Purchase Price Acquisition Date Products & Services
uSwitch £160 million April 2015 Comparison services
Property Software
Group
£75 million April 2016
Estate agency back
office systems
Technicweb £7 million (estimated) November 2016
Designing websites for
the property sector
Hometrack £120 million January 2017
Data provider to
lenders, investors and
home buyers
Expert Agent £7 million (estimated) March 2017
Estate and letting
agency software
provider
Ravensworth unknown September 2017 Print marketing
Money.co.uk £80 million September 2017
Financial products
comparison.

Zoopla’s seven acquisitions will generate around
75% of total group revenues in 2017.
These seven acquisitions
will generate around £185
million in annualized
revenue in 2017, compared
to their aggregated
purchase price of around
£450 million.
Annualized estimates based on HY17 results.
Zoopla’s strategy–born of necessity–is paying dividends.
uSwitch
PSG
Technicweb
Expert Agent
Hometrack
Money.co.uk
Portal
Zoopla's Revenue Breakdown

Portal homepage analysis
A portal’s homepage is a reflection
of its strategy.
Reviewing the designs of each—
what they include, exclude, and
where the focus lies—gives us
insight into what each portal
deems important.
These interfaces are the result of
years of research, learning, and
iteration around creating the ideal
visitor experience.

Rightmove’s homepage—like its strategy—is
simple and focused.

Zoopla stays focused on property search, despite
having a wealth of related services.

Realestate.com.au keeps it simple, but also
features home design content.

Domain offers the most simple search experience
across the major portals.

Zillow keeps it simple with a straight-forward
home search.

Trulia highlights adjacent property data through
its map overlays.

Realtor.com highlights its mortgage lead
generation product.

ImmobilienScout24 stays focused on search, with
a call-out to potential listing customers.

Like the other global leaders, SeLoger is focused
on a straightforward search experience.

Visually cluttered, Trade Me Property attempts to
highlight home valuations amongst banner ads.

Like Trade Me, Schibsted’s leboncoin is a
horizontal with a strong real estate section.

Another leading horizontal, the Russian portal
Avito, also has a strong real estate section.

Avito, the horizontal, runs a real estate vertical,
Domofond, to provide a tailored experience.

A review of the portal homepages reveals several
common trends.
• Almost all of the portals are laser-focused on a simple
search experience.
• All of the portals have links to find agents.
• Only the U.S. portals include mortgage links.
• Only the U.K. portals include overseas property links.
• U.K., Australia, and New Zealand have links to
commercial property.
• All portals include links to home valuations
• Several portals include links to home design, inspiration
or real estate news.

Rightmove is launching data-driven products to
agents that drive efficiency and transparency.

Trade Me has launched an agent hub and
property insights (valuation and sales history).

REA is innovating in emerging technologies and
launching products across all customer groups.

Zoopla is launching new products across the
property value stream.

In France, SeLoger is focused on products and
services underpinned with data.

Zillow is launching products to help its agent
customers manage leads through the platform.

Move has recently launched ”My Home”–a data-
driven home portal–and a mobile AR app.

Mobile usage continues to rise, leading to a
mobile-first product development strategy.
0% 20% 40% 60% 80% 100%
Trade Me Property
Rightmove
Zoopla
Immobilien Scout24
Zillow
Proportion of Mobile Visits
www.mikedp.com

Five years of M&A activity
This M&A analysis covers
investments and acquisitions made
by seven of the top global portals
between 2012 and 2017.
The data sources are public
records and financial reports. In
some cases, deal size estimates
have been made.
Twenty-nine deals are included in
this analysis, excluding Zillow’s
2015 acquisition on Trulia for $2.5
billion.

The largest M&A activity occurred in 2015.
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2012 2013 2014 2015 2016 2017
Millions
Total M&A Over Time
www.mikedp.com

For the scope of this analysis, I’ve defined the
following categories…
Category Description
Domestic Building domestic market share.
International Expansion beyond the home country.
Ancillary
New revenue streams related to property advertising (ex: utility switching, mortgages,
rental applications).
Data Data collection, management, and presentation tools, and monetization thereof.
Agents Tools and products for real estate agents (that they pay for).
Consumer
Products and technologies designed to directly improve the consumer experience on
the real estate portal (ex: improved search, virtual home decorating).

Here we have the total number of investments
and acquisitions between 2012-2017.
Company Domestic International Ancillary Data Agents Consumer
Zillow 4 1 2 1 1
REA Group 3 3
Zoopla 2 1 4
Rightmove 1
Move 2 1
Immobilien
Scout24
3 2 1
Domain 3 1

Total deal flow (where known) from investments
and acquisitions between 2012-2017.
Company Domestic
Inter-
national
Ancillary Data Agents Consumer Total
Zillow $85M $17M $7M $108M $10M $227M
REA Group $749M $32M $781M
Zoopla $317M $159M $118M $594M
Rightmove $3M $3M
Move $22M $28M
Immobilien
Scout24
$3M $66M $37M $105M
Domain $12M $24M $44M

Zillow has a varied approach to M&A, focused on
building domestic market share and agent tools.
0
1
2
3
4
$0
$30
$60
$90
$120
Domestic International Ancillary Data Agents Consumer
Numberofdeals
Millions
Zillow's 5-year M&A Activity
Investment total Number of deals
www.mikedp.com

REA Group has invested massively in international
expansion (India, U.S. and Southeast Asia).
0
1
2
3
4
$0
$200
$400
$600
$800
Numberofdeals
Millions
REA Group's 5-year M&A Activity
www.mikedp.com

Zoopla has been focused on ancillary and value-
added services for estate agents.
0
1
2
3
4
$0
$90
$180
$270
$360
Numberofdeals
Millions
Zoopla's 5-year M&A Activity
www.mikedp.com

Rightmove made its first acquisition in 2016 in
support of its agent-focused strategy.
0
1
2
3
4
$0
$10
$20
$30
$40
Numberofdeals
Millions
Rightmove's 5-year M&A Activity
www.mikedp.com

Move has spent modestly in support of additional
products and services for agents.
0
1
2
3
4
$0
$10
$20
$30
$40
Numberofdeals
Millions
Move's 5-year M&A Activity
www.mikedp.com

IS24 has invested internationally, built domestic
market share, and supported its agent customers.
0
1
2
3
4
$0
$20
$40
$60
$80
Numberofdeals
Millions
IS24's 5-year M&A Activity
www.mikedp.com

Domain has invested in ancillary revenue streams
and data acquisition.
0
1
2
3
4
$0
$10
$20
$30
$40
Numberofdeals
Millions
Domain's 5-year M&A Activity
www.mikedp.com

Looking at total M&A expenditure as a percentage
of revenue shows relative activity levels.
1%
7%
27%
28%
37%
172%
227%
0% 50% 100% 150% 200% 250%
Rightmove
Move
Zillow
Domain
ImmobilienScout24
REA Group
Zoopla
M&A as a % of FY16 Revenue
www.mikedp.com
Remember: this excludes the
massive Trulia merger.

Exec team structures
A lot can be said for how a
company is organized, especially at
the top.
The composition of the exec team
gives us a window inside a
company’s strategy, and is where
the rubber hits the road when it
comes to execution and
responsibility.

11
10
9 9 9
8
4
0
2
4
6
8
10
12
REA Group Zoopla Trade Me Zillow Move Domain Rightmove
Executive Team Sizes
www.mikedp.com
In general, exec team sizes are quite large and
reflective of growth strategy complexity.
Most active in M&A = biggest
exec teams to support.

REA is structured along functional and divisional
lines, and has roles focused on innovation & int’l.
REA Group’s Organizational Structure
• CEO
• CFO
• Chief Executive Officer, REA Group Asia
• Chief Inventor
• Chief Engineer
• CMO
• Executive General Manager, Commercial & Developer
• Executive General Manager, Residential
• Executive General Manager, Media
• Executive General Manager, Consumer Experiences
• General Counsel and Company Secretary
Domain Group’s Organizational Structure
• CEO
• CFO
• COO
• Chief Commercial Officer
• Chief Editorial & Marketing Officer
• Group Director, Domain Media
• CTO
• Managing Director, Domain Victoria
The only portal with an innovation-focused role on the exec team.
Divisional structure
International

Rightmove keeps it simple, while Zoopla’s
structure supports its diversification strategy.
Zoopla’s Organizational Structure
• CEO
• CFO
• Managing Director, Comparison
• Managing Director, Property
• Managing Director, Data
• CMO
• CPO
• CTO
• Chief Talent Officer
• Chief Strategy Officer
Rightmove’s Organizational Structure
• CEO
• Finance Director
• Head of Agency
• Head of Customer Experience
Data is quite important.
Super simple, and
focused on customers.
Reflective of Zoopla’s focus on M&A activity.

In the U.S., Zillow and Move keep relatively
straightforward structures (with a data focus).
Move’s Organizational Structure
• CEO
• CFO
• CPO
• CMO
• Executive Vice President, Industry Platforms
• Executive Vice President, Sales
• Executive Vice President, General Counsel and Secretary
• Senior Vice President, Business Development and Strategy
• Chief Economist
Zillow Group’s Organizational Structure
• CEO
• CTO
• COO
• Chief Analytics Officer
• CFO
• Chief Industry Development Officer
• Chief Business Officer
• Chief People Officer
• CMO
Reflective of the importance of data (for Zestimate valuations).
Industry outreach is critical in the U.S.
Data

Mike is a strategic advisor and global expert in real
estate tech. He is a former tech entrepreneur and
head of strategy at a major real estate portal.
He has travelled the world talking to and working
with leading property portals and real estate tech
startups, gathering first-hand knowledge and
insights on industry trends and themes. He
advises corporates, works with startups, mentors
founders and executives, and works on
challenging entrepreneurial projects.
• www.mikedp.com
• mdelprete@gmail.com
About the author: Mike DelPrete

Hungry for more? The AIM Group’s Real Estate
Annual is coming soon.
The global battles raging in the real estate classifieds space have never been as dynamic and
exciting than today. In the U.S., Zillow Group is in a pitched fight against the industry; in
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the challenge to take on the dominant market leader.
Some of the stories in this year’s real estate annual:
• The battle for New York: Zillow’s StreetEasy vs. the industry
• Rightmove and Zoopla in the U.K.: Different strategies, similar successes
• Australia-based Domain relishes challenge to take on dominant market leader
• Ingatlan.com: One of the most innovative verticals in the world
• Schibsted’s giant horizontal faces off against Axel Springer’s verticals in France
• How Germany’s largest portal is reacting to proptech disruption
The 100+ page AIM Group real estate annual for 2017, coming soon, includes in-depth
reporting of real estate classified leaders in 31 countries; reviews ten emerging start-ups
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A note on data sources
The data sources primarily include company reports, investor presentations,
earnings calls (and transcripts), and supporting documentation. All information
used is in the public domain. No confidential information has been used in this
report. Some data has been estimated from financial statements and known data
points.
Copyright © Mike DelPrete

2017 Global Real Estate Portal Report

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