Mitula Group
Initiation of coverage
Directing traffic
Media
29 March 2016
Mitula Group is a leading aggregator of online classified listings, operating
in the global online advertising market. Its specific growth techniques,
together with existing scale and a focus on higher-growth markets, should
drive medium-term growth ahead of the sector, we believe. The company
Price
listed on ASX in July 2015, raising A$26.52m gross at an offer price of
A$0.75/share. Mitula Group is already profitable, has met its prospectus
guidance for CY15, is on track to meet its 2016 fiscal year prospectus
forecasts, and has made its first post-IPO acquisition, buying Spain-based
real estate classifieds aggregator, Nuroa Internet SL for ~€3m (A$4.47m).
Net cash (A$m) at 31 Dec 2015
Revenue
(A$m)
PBT*
(A$m)
EPS*
(c)
DPS
(c)
P/E
(x)
Yield
(%)
12/15
20.6
7.5
3.0
0.0**
33.3
N/A
12/16e
32.2
15.9
5.7
0.0
17.5
N/A
12/17e
42.8
21.6
7.7
0.0
13.0
N/A
12/18e
51.7
26.7
9.4
0.0
10.6
N/A
Year end
A$1.00
Market cap
A$209m
21.0
Shares in issue
208.8m
Free float
34%
Code
MUA
Primary exchange
ASX
Secondary exchange
N/A
Share price performance
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles,
exceptional items and share-based payments. **Not reflecting €2.1m (A$2.9m) extraordinary
dividend paid pre-IPO to shareholders in Mitula Classifieds, wholly-owned by MUA.
Highly experienced leadership team
MUA’s key attribute is its highly experienced leadership team, led by independent
chairman Simon Baker, who has several years’ experience building similar
businesses in Australia and Asia; in particular REA Group (REA.ASX) and
iProperty, which REA recently acquired. Similarly, CEO and co-founder Gonzalo
del Pozo established Spain’s leading property portal, Globaliza, along with fellow
MUA co-founder and director Gonzalo Ortiz.
%
1m
3m
12m
Abs
0.5
(0.5)
N/A
(3.5)
1.5
N/A
Rel (local)
52-week high/low
A$1.20
A$0.78
Business description
Proven model and tracking ahead of guidance
Mitula operates a 'freemium model' in that it provides a limited number of free clickouts to its online classifieds customers, directing users to their websites. One-third
of its revenue is derived from Google AdSense with the remainder from paid clickouts by advertisers who want additional traffic directed to their websites. Our
above-market growth forecasts are based on four main growth drivers: 1) MUA’s
highly developed search engine optimisation (SEO) techniques; 2) its 'freemium'
model to build spend with website owners; 3) MUA’s focus on less developed
markets; and 4) its ability to scale, giving MUA its 'go-to' status as an aggregator.
Success with this strategy to date has enabled MUA to deliver better than
prospectus guidance results.
Valuation: Blended valuation is A$1.36/share
We have used a DCF methodology to value MUA (WACC 12.0%, beta 1.2, terminal
value 2.0%) and have arrived at a per share valuation (including in-the-money
options) of A$1.40/share. We have also examined the company's peer group of
listed classifieds companies. The implied valuation using the forward 12-month
EV/EBITDA median of this group is A$1.31/share. This gives us a blended valuation
of A$1.36/share.
Mitula Group is a leading online classifieds
aggregator, with 74 vertical search websites in 44
countries across real estate, employment,
motoring, and in some countries, vacation rentals.
These sites are in 18 different languages and
operate under either the Mitula or Nestoria brands.
Next event
AGM
April 2016
Analysts
Finola Burke
+612 9258 1161
Moira Daw
+612 9258 1161
[email protected]
Edison profile page
Mitula Group is a research
client of Edison Investment
Research Limited
Investment summary
Driving traffic
Mitula Group (MUA.AX) operates 74 vertical search sites in 44 countries across real estate,
employment, motoring and in some markets, vacation houses. It derives revenue from Google
AdSense and Direct Cost-Per-Click (CPC) revenue from classifieds websites. A key part of its
strategy is to provide 'freemium' traffic to advertisers in exchange for their listings. It generates
revenue from advertisers, mainly classifieds websites, who wish to receive more click-outs than
MUA provides free of charge. Such websites generate around two-thirds of MUA’s revenue.
In January 2016, MUA had 13,705 advertisers (55% penetration of estimated addressable market),
of which 4.6% were paying advertisers. Its ambition is to convert 8% of advertisers to paying
customers near term, and 20% longer term. We forecast above-market growth until CY18 due to
four key drivers: 1) its highly developed search engine optimisation and traffic management
techniques; 2) the freemium model’s ability to convert paying customers; 3) its focus on highgrowth, less developed markets; and 4) scale, making it a 'go to' aggregator in its markets.
Valuation: Blended valuation of A$1.36/share
We use both a DCF methodology and a peer comparison to value MUA. Our DCF valuation arrives
at a valuation of A$1.40/share. We also examine the group’s peer group of listed classifieds
companies. The implied valuation using the EV/EBITDA median, after applying a 10% discount to
this for MUA’s relative size, is A$1.31/share. This gives us a blended valuation of A$1.36/share.
Generating strong cash flows and on track to meet prospectus
Mitula generated strong free cash flows from CY12 to CY15 of A$0.76m, A$2.9m, A$4.25m, and
1
A$8.8m respectively. These are on a pro forma basis including Lokku, acquired in May 2015. The
company exceeded its prospectus pro forma guidance for NPAT in its financial year, calendar (CY)
2015 reporting NPAT of A$7.98m versus its forecast of A$7.75m. The company has also reaffirmed
it remained on track to meet its prospectus forecasts for the year to June (FY) 2016.
Sensitivities: Changes in Google terms and foreign currency
We believe the key risks for MUA are:

unfavourable changes to Google AdSense’s terms and revenue sharing arrangements;

unfavourable changes to the search algorithms used by search engines, such as Google;

loss of key personnel both at board and senior management level;

industry consolidation could reduce the demand for paid search, and hence MUA’s services.

foreign currency risk as its costs, expenses and investments are denominated in multiple
currencies, while its financial results are reported in Australian dollars;

traffic acquisition fails to translate into additional users being attracted to MUA’s websites; and

execution risk if MUA fails to continue to roll out its brands across new markets or fails to
continue to grow its paying advertiser base as per its stated strategy.
1
Mitula Group Prospectus, June 2015, page 70 and Mitula Group CY 2015 results announcement, 29
February 2016.
Mitula Group | 29 March 2016
2
Company description: Directing traffic
Mitula Group (MUA.AX) is a leading vertical search engine website operator with 74 websites in 44
countries and in 18 languages. These websites operate across real estate, employment, motoring
and, in some countries, vacation rentals, under two main brands, Mitula and Nestoria. The
company is headquartered in Madrid, Spain and has a team of ~75 employees across five offices.
MUA’s strategy is to roll out its two main brands across new countries, increase the number of
website owners paying for click-outs and referrals, continue to refine mobile versions of its websites
and to develop apps to capture a share of the fast-growing mobile market, explore opportunities to
take its brands into new verticals, and make selected acquisitions as they present themselves.
MUA’s wholly-owned subsidiary, Mitula Classified, was founded in 2009 by directors Gonzalo del
Pozo and Gonzalo Ortiz, and chief operations officer Marcelo Badimon. Prior to establishing Mitula
Classified, Messrs del Pozo and Ortiz co-founded Globaliza, one of the first Spain-based real estate
classifieds websites. Globaliza, which was partially acquired by Unidad Editorial in 2009, is a paying
advertiser to MUA.
In April 2015, MUA became the 100% owner of Mitula Classified, which at that time had 38 vertical
search engines across 38 countries. In May 2015, the company acquired UK-based Lokku for
€6.0m (A$8.4m) on a deferred settlement basis with a final payment of €900,000 payable in
November 2016. Lokku was founded in 2006 by Javier Etxebeste and Ed Freyfogle who continued
to provide consultancy services to MUA until September 2015. Lokku owns the Nestoria brand of
websites, At the time of acquisition, Lokku was operating in nine countries – UK, Spain, Australia,
France, Italy, Germany, Brazil, India and Mexico.
In March 2016, MUA made its first acquisition as a listed entity, purchasing Barcelona-based real
estate classifieds vertical search operator, Nuroa Internet SL, for ~€3m (A$4.47m) in cash and a
small allotment of 81,512 shares to some of the vendors. Nuroa owns 17 real estate vertical search
sites throughout Europe, the US, South America and Australia and operates a similar model to MUA
with revenues generated from both Google AdSense and direct cost-per-click revenue. MUA
estimates before synergies, Nuroa will generate from A$1.2m-A$1.4m in revenue and an EBITDA
margin of 35-40% in calendar 2016. Olrio Lasco, Nuroa’s CEO, will assist the integration under a
consulting arrangement with MUA. MUA intends to run the Nuroa brand in some markets.
Driving traffic
Mitula uses a 'freemium' model to attract classifieds website owners to its sites. These advertisers
provide their listings to Mitula, which in turn provides a limited number of free click-outs from users
of MUA’s websites. A click-out occurs when a user clicks on a listing on a website and is redirected
to the advertiser’s website where the listing is hosted. Advertisers who want more traffic than that
provided under the freemium model pay for additional click-outs. At January 2016, 625 advertisers
were paying for click-outs, up 14% y-o-y. Y-o-y total advertisers rose 15% to 13,705, so that the
proportion of paying advertisers has been maintained at 4.6%. Usage of MUA’s websites has
grown, with monthly click-outs increasing 24.2% y-o-y to 93.0m, from a 21.0% y-o-y increase in
traffic to 61.3m monthly visits. MUA sold 37.8m or 41% of its click-outs in January 2016, compared
with 37.0m or 49% the same month a year ago. The opportunity for MUA is to convert more of its
traffic to paid click-outs and to increase its paid advertiser base. Nuroa had 2.5m paid click outs in
January and this will add to MUA’s base. Total advertisers represent about 58% of the estimated
addressable market in classified websites in MUA’s 44 countries. This can fluctuate depending on
the economic dynamic within each country and the stage of roll-out at which MUA may be in a
country. This highlights the benefit of MUA’s global approach. As an aggregator of classifieds traffic,
its ability to manage listings across several countries and in several verticals enables it to generate
profitable income from a small proportion of its addressable market. Exhibit 1 highlights the
Mitula Group | 29 March 2016
3
business model in detail. Exhibit 1 does not include Nuroa, which, in January 2016, carried almost
40m listings, generated click outs per visit of 1.91 times and sold 2.5m click outs, adding about
6.6% to MUA’s paying traffic.
Exhibit 1: Business model*
Listings
•
•
•
Listings from all advertisers are
delivered to Mitula Group
263m listings in January 2016
Growth: 93% Jan ‘13-Jan ‘16
AdSense
• Users engage with targeted
ads displayed by Google on
MUA websites
• Google shares revenue with
MUA
Listings
263m
Advertisers
• Can be free or paying
advertisers
• Contains listings sent to
Mitula Group
• Receive visits from
users of MUA’s
websites through Click
Outs
• Growth: 214% in total
advertisers from Jan
‘13-Jan ‘16; paying
advertisers increase
617% over same period
Advertisers
Total 13,705
4.6% paying
Visits
61.3m per
month
Visits
•
•
Listings are used to
attract visits to the
websites
Growth: 107% from
Jan ‘13-Jan ‘16
Click Outs
93m per
month
Click Outs
• Visits to the websites generate Click
Outs, some of which will be sold to
paying advertisers
• Growth: 176% from Jan ’13 – Jan ‘16
Source: Mitula Group reports, Edison Investment Research. Note: *Excludes Nuroa traffic.
When MUA launches a website in a new country, it initially relies on visits by users generated from
general search engines. It uses search engine optimisation (SEO) to improve visibility of and
increase visits to a website by obtaining a high-ranking placement in the search results pages of
general search engines. A key strength in this SEO strategy is that MUA is targeting the long tail of
specific inquiries from users. For example, a user searching for property in an open-ended way in
Australia would likely find realestate.com.au or domain.com.au at the top of its search results, but a
query that specifically seeks a house in a particular suburb with particular features and price, would
result in Mitula or Nestoria topping the search results. This strategy is referred to as “long tail”
keywords in which as many as five keyword phrases make up the search query. To date MUA has
relied on its SEO strategy and traffic acquisition to drive traffic to its websites, from which it
aggregates the queries. There has been almost no expenditure on brand marketing and the
company’s prospectus forecasts do not contain any additional spend on marketing.
Instead, the group’s focus is on its expenditure on staff (~60% of operating costs) and technology
expenditure (~10% of operating costs). The investment made in listings quality management,
listings feed management, SEO tactics, performance tracking and user experience have helped
drive the strong growth demonstrated by the company historically. The technology team has also
created a highly scalable website architecture, which allows new country websites and new listings
feeds to be rapidly established. MUA also encourages users to sign up for email alerts regarding
the search query so that MUA can notify the user of new listings. At April 2015, MUA had 9 million
subscribers to email alerts, allowing it to have a direct, ongoing relationship with these users
Tapping into demand for paid search
Mitula Group generates its revenue from Google AdSense and Direct Cost-Per-Click (CPC)
revenue from advertisers. MUA’s websites carry advertisements from Google AdSense and when
users click on these ads, Google pays MUA a proportion of the revenue it generates from these ads
for the traffic generated by MUA. These advertisements are administered and maintained by
Mitula Group | 29 March 2016
4
Google, are targeted to the website’s content and audience, and are usually displayed on the
websites at the top of search results. We estimate that ~33% of MUA’s revenues came from Google
AdSense in CY15 and are forecasting that, as a proportion of total revenue, this will decline to 31%
by CY18. MUA has not disclosed the terms of the revenue sharing arrangement with Google
AdSense but these can change at any time and the relationship can be terminated without notice.
The Direct CPC revenue is generated from classifieds websites seeking additional traffic over and
above the free traffic that MUA offers all classifieds websites in exchange for their listings. There is
therefore a strong correlation between the number of listings MUA’s websites carry and the number
of 'advertisers' or classifieds websites receiving free traffic from Mitula and Nestoria in the form of
click-outs. This is known as the 'freemium’ model. MUA provides a limited number of free click-outs
to these advertisers and then receives a fee per click-out, known as Direct Cost-Per-Click (CPC)
revenue, generated over and above the agreed free limit from a smaller cache of advertisers
prepared to pay for additional traffic.
MUA’s arrangements with these websites are on a case-by-case basis with a focus on what the
advertiser’s short- to medium-goals are in relation to their traffic needs and varies by vertical (real
estate, employment, motoring) and by country. Hence the key operational metrics for MUA are the
number of listings it has on its websites, the number of visits it receives from users and the clickouts that are generated by those users while in the MUA websites. Exhibit 2 shows the growth in
these metrics since January 2013. Correspondingly, the ratio of click outs to visits has risen from
1.14 in January 2013 to 1.52 in January 2016. Paid click outs per month have been consistently at
~38m for the past 12 months but the yield per click out has increase 28.1%. The company also
announced in mid-February 2016 that 0.5% of its visits were generated from apps, having soft
launched its mobile apps in Australia in November 2015. This compares with 6.3% from paid
search, 24.4% from direct visits and 68.7% from organic search.
Exhibit 2: Key operational metrics – listings, visits and click-outs, Jan 2013 to Jan 2016
300.0
100.0
250.0
80.0
Millions
60.0
150.0
40.0
100.0
20.0
50.0
-
Millions
200.0
Jan-13
May-13
Sep-13
Listings
Jan-14
May-14
Visits
Sep-14
Jan-15
May-15
Sep-15
Jan-16
-
Click Outs
Source: Mitula Group reports
MUA operates in markets with different levels of maturity, and hence derives different levels of
revenue respectively from Google AdSense and direct CPC revenue. In markets of low maturity,
such as developing countries with still strong print-based media and nascent online classifieds
businesses, MUA generates most of its revenue from Google AdSense. In fact, MUA is often
encouraged by Google to enter markets such as these to help develop search traffic. As Exhibit 3
shows, markets such as Pakistan and Indonesia are considered to have a low maturity; however,
over time, they are expected to develop into markets that can generate Direct CPC revenue. Exhibit
3 also highlights how mature markets can differ depending on whether there is a clear market
leader in an online classifieds vertical. In Australia, for example, where there are clear market
leaders in the verticals (REA Group in real estate, Seek in employment and CarSales in motoring),
revenue is mostly generated from the second- and third-placed competitors buying traffic to take on
Mitula Group | 29 March 2016
5
the market leader, although some market leaders will buy traffic to starve competitors. We discuss
paid search in more detail in the next section, but it is worth referring to Exhibit 11 on page 10,
which shows Domain, the number two player in real estate, paying for 6.1% of its search traffic
(more than double that of REA’s realestate.com.au) and CarSales, the dominant player in motoring,
buying 17.7% of its traffic generated from search.
Exhibit 3: Revenue streams by country and market structure
Direct CPC
revenue/AdSense
Maturity
High
Direct CPC
revenue/AdSense
Medium
Mainly
AdSense
Low
Example: Italy (most markets)
•
Strong number of click out
•
All competitors chasing more traffic
•
Significant spend and growing as MUA
grows
Example: Australia/Germany/UK (very few
markets)
•
Competitors, esp second placed
buying traffic to take on market leader
•
Some market leaders buy traffic to
starve competition
Example: Brazil/India/Indonesia – Well
funded websites
• High Levels of visits and growing
• Growing number of click outs
• Many competitors buying traffic to
achieve leadership
• Continued financing and competition
will drive strong Direct CPC revenue
Example: Pakistan/Vietnam/Nigeria – low
funded players
•
Low/no levels of paid advertisers
•
Low CPC rates
•
Competition (and financing) will
emerge to drive Direct CPC revenue
growth
Source: Mitula Group
Exhibit 3 above also implies the opportunity for MUA to generate strong Direct CPC revenue from
what it describes as markets of medium maturity. These are markets such as Brazil, Indonesia and
India where the market landscape is such that still there is no clear market leader and many players
are buying traffic to achieve that position. Exhibit 4 below provides Brazil’s real estate market as an
example. While Zapimoveis is ranked number one website in the market, Vivareal is a close
number two, particularly in relation to its ranking across all websites in Brazil. All three real estate
websites buy a significant proportion of the traffic generated from search sites and, as the referring
sites show, Mitula and Nestoria are also generating traffic for these sites from referrals and deriving
income from both referrals and paid search.
Exhibit 4: Market example – Brazil real estate verticals
Classifieds website
www.zapimoveis.com.br
www.vivareal.com.br
www.imovelweb.com.br
Market rank
Country
rank
1
2
3
242
248
795
Traffic from
Percentage of
search % traffic from paid
search %
53.69
26.43
64.12
11.72
31.64
27.43
Traffic from
referrals %
Referring sites
19.44
12.42
22.95
Globo, Trovit, Mitula, Nestoria
Mitula, Nestoria, Trovit
Trovit, Mitula, Nestoria
Source: Similarweb.com. Note: *Data from November 2015, accessed in January 2016.
This competitive landscape translates into revenue for MUA. Brazil is consistently listed as
generating the highest click-outs or traffic for MUA and as the following exhibit shows, Brazil
produced almost 12% of the group’s revenues in June 2015. It is worth noting that while the top
three revenue generating countries are new emerging markets, the remainder are well established,
mature online classifieds markets. The company confirmed that in January 2016, Brazil remained
its top country for click-outs and visits.
Mitula Group | 29 March 2016
6
Exhibit 5: Top 10 revenue-generating countries – June 2015
Country
Brazil
India
Mexico
Italy
United Kingdom
Germany
France
Spain
Argentina
Australia
% June 2015 revenues
11.9
10.6
8.6
7.9
6.9
6.8
5.9
5.8
5.1
4.4
Source: Mitula Group FY15 analyst presentation (August 2015)
Expansion opportunities
MUA has a stated ambition to pursue value-adding acquisitions in the classifieds aggregation
sector. The company acquired UK-based classifieds aggregator Lokku for A$9.9m in conjunction
with its IPO and it is now rolling out Nestoria websites to complement existing Mitula websites.
Nestoria had also developed a presence in the holiday rentals market and MUA continues to roll out
this vertical where it makes sense. The company’s acquisition of Nuroa provides additional support
for its already strong base in the real estate vertical search market. We estimate that the
transaction is EPS accretive by c 2% with the A$0.42m EBITDA we forecast Nuroa will generate in
2016e exceeding the interest MUA would have made on the estimated A$4.4m cash it paid for the
company.
We anticipate that MUA will seek to acquire employment classifieds aggregators and potentially
develop an e-commerce vertical for general classifieds. Traffic to e-commerce sites is substantially
higher than to real estate or auto sites as the purchase size is generally much smaller. The cost of
rolling out such a vertical would be minimal as MUA has already invested in all the architecture and
systems. It would largely be a case of convincing the classifieds websites to deliver their listings in
exchange for an agreed number of free click-outs. We have not included any assumptions in our
forecasts for expansion into other verticals or acquisitions.
MUA is also in the process of rolling-out mobile apps for both android and IOS smartphones for all
its websites. The company launched its android app in November 2015 and revealed in January
that 0.5% of its 61.3m monthly visits had come from apps. We expect this to grow rapidly. With
classifieds verticals such as Seek and realestate.com.au reporting that ~50% of their traffic now
comes via smartphones, mobile take-up is forecast to be a key plank in MUA’s expansion strategy.
Another potential source of growth for MUA lies in its growing data bank of users. At September
2015, MUA had 9 million users subscribing to email alerts for property, jobs or motor vehicles. The
opportunity to strengthen the relationship with these users may, over time, create new revenue
streams for the group and help to reduce its reliance on Google AdSense. We envisage that,
subject to permissioning restraints, MUA could potentially sell targeted advertising based on user
interests or direct them to classifieds sites, such as e-commerce sites, beyond real estate, jobs and
cars, according to their click-out profiles. We have not included any revenue in our assumptions
from this database.
Global online advertising market
The global online advertising market is forecast to grow at a compound rate of 13% over the next
four years and accounts for 39% of total advertising expenditure by 2019, up from 27% in 2014,
according to eMarketer. Exhibit 5 highlights these forecasts. Global search advertising is forecast
by eMarketer to grow to US$130bn by 2019, from an estimated US$82bn in 2015, as Exhibit 6
Mitula Group | 29 March 2016
7
shows. Growth rates in emerging markets, however, are forecast by eMarketer to be higher and it is
important to note that MUA’s focus in Latin America and emerging markets such as Indonesia and
India in the Asia Pacific will expose it to higher growth rates than the global average.
Exhibit 7: Global search advertising forecasts 201319e
25%
140
250
20%
100
15%
150
10%
100
10%
60
40
5%
20
0
2013
2013
2014
2015e 2016e 2017e 2018e 2019e
2014
2015
2016
Search ad spending worldwide (L Axis)
5%
50
0
15%
80
US$billions
200
20%
120
2017
2018
Percentage change
300
Change y-o-y
US$bn
Exhibit 6: Global digital advertising expenditure 201319e
0%
2019
Percentage change
0%
% change y-o-y
Total digital ad spend US$bn
Source: eMarketer, November 2015
Source: eMarketer, March 2015
Mobile advertising is forecast to become a significant portion of global digital advertising over the
next five years, accounting for 70% of digital ad spending by 2019 according to eMarketer. In the
US, eMarketer forecasts mobile search to overtake desktop search in 2015 and grow at a
compound rate of 16% over the next five years.
Exhibit 9: Forecast US mobile search revenues and
desktop search revenues
200
80%
150
60%
100
40%
50
20%
0
0%
30
25
US$bn
US$bn
Exhibit 8: Mobile internet advertising spend as a
percentage of total digital ad spending
20
15
10
5
2013
2014
2015e
2016e
2017e
2018e
Mobile internet ad spending (US$bn)
% of digital ad spending (R axis)
Source: eMarketer March 2015
2019e
0
2014
2015
2016
Mobile search
2017
2018
2019
Desktop search
Source: eMarketer, January 2016
However, as the following exhibit shows, eMarketer expects the US growth rates to lag emerging
markets such as Brazil, Indonesia and Russia. In our view, MUA’s exposure to these higher-growth
markets supports the higher growth rates we have applied to our forecasts. Our forecasts have a
compound rate of 31% in revenue growth in Asia Pacific from CY15-18; 15% in Europe, the Middle
East and Africa, and 21% in the Americas.
Mitula Group | 29 March 2016
8
Exhibit 10: Mobile internet ad spending forecasts 2013-18 by country
US$bn
2013
2014
2015
2016
2017
2018
US
China ex HK
UK
Japan
Germany
Australia
Canada
South Korea
Brazil
France
Netherlands
Indonesia
Russia
Rest of world
Worldwide
10.42
0.92
1.95
1.84
0.45
0.34
0.39
0.46
0.07
0.25
0.16
0.01
0.07
1.87
19.2
18.91
7.54
3.70
2.75
1.31
0.85
0.85
1.00
0.25
0.45
0.45
0.04
0.20
4.33
42.63
28.48
13.98
5.37
3.85
2.1
1.36
1.42
1.6
0.55
0.71
0.69
0.13
0.43
8.03
68.7
40.24
22.14
7.25
5.01
3.07
2.11
2.2
2.08
1.02
1.04
0.95
0.32
0.78
13.16
101.37
49.56
31.31
9.13
6.31
4.2
2.96
2.86
2.5
1.73
1.45
1.24
0.74
1.09
18.66
133.74
57.54
40.6
11.12
7.57
5.25
3.85
3.67
2.95
2.68
1.97
1.55
1.49
1.41
24.98
166.63
CAGR 201418
25%
40%
25%
22%
32%
35%
34%
24%
61%
34%
28%
106%
48%
42%
31%
Source: eMarketer, March 2015
Competitive landscape
MUA competes with general search websites, such as Google, for a share of paid search
advertising expenditure. It also competes with other vertical search websites that are either vertical
specific, such as global employment vertical, indeed.com and global travel vertical skyscanner.net,
or country-specific such as trademe.com.nz. There is only one global competitor, Trovit, which
operates in the same verticals and in as many countries as MUA. Exhibit 11 highlights some of the
classifieds websites that Mitula, Nestoria and Trovit target as advertisers, both paid and unpaid.
Classifieds websites prepared to pay for a portion of their search traffic are key targets for these
aggregators.
Trovit, which was founded in 2006 in Spain, was acquired by Japan-listed real estate vertical
company Next Co (2120.TYO) in 2014 for €80m. No details were provided at that time of multiples
paid. Since the acquisition, Trovit continues to operate as a global aggregator within Next Co, which
has a strategic focus on building out real estate verticals in new markets, including Australia. Trovit
now operates in 46 countries and, according to MUA management, is around 20% larger than
Mitula. It has also been a contributing factor to Next Co’s rerating by investors. Shares in Next Co
have increased more than three-fold since the acquisition was announced. Other recent
acquisitions in this sector include REA Group’s A$538m January 2016 takeover of iProperty
(IPP.AX) at a 12-month trailing EV/Sales multiple of 29.1x, IAC InteractiveCorp’s November 2015
US$513m takeover of Angie’s List at an EV/Sales multiple of 1.5x and an EV/EBITDA multiple of
25.7x 12 month trailing, and Lagardere’s 2012 acquisition of French shopping vertical LeGuide for
€98.2m or a 12-month trailing EV/Sales multiple of 3.8x.
Mitula Group | 29 March 2016
9
Exhibit 11: Classifieds and vertical websites comparison
Proportion Proportion of
of traffic
traffic from
from
direct,
search
referrals,
engines (%)
mail, social
(%)
Website
Australian classifieds
www.gumtree.com.au
www.realestate.com.au
www.seek.com.au
www.domain.com.au
www.carsales.com.au
www.onthehouse.com.au
www.homesales.com.au
International classifieds
www.trademe.co.nz
www.craigslist.org
www.milanuncios.com
www.rightmove.co.uk
www.zillow.com
www.immobilienscout24.de
www.autoscout24.de
www.immobiliare,it
www.zoopla.co.uk
www.realtor.com
www.casa.it
www.zapimoveis.com.br
www.99acres.com
www.cars.com
Proportion Proportion
of search
of search
traffic from traffic from
organic paid search
search (%)
(%)
28.84
33.43
18.61
22.67
30.96
72.00
70.07
71.16
66.57
81.39
77.33
69.04
28.00
29.93
99.22
96.98
98.35
93.86
82.35
96.68
64.75
0.78
3.02
1.65
6.14
17.65
3.32
35.25
12.77
18.70
55.16
37.50
43.09
29.58
33.90
33.36
48.32
43.54
39.44
53.69
60.96
36.79
87.23
81.30
44.84
62.50
56.91
70.42
66.10
66.64
51.68
56.46
60.56
46.31
39.04
63.21
94.63
100.00
99.71
99.97
95.50
84.39
85.32
85.18
96.89
93.34
79.75
73.67
87.99
92.19
5.37
0.29
0.03
4.50
15.61
14.68
14.82
3.11
6.66
20.25
26.33
12.01
7.81
Country
of origin
NZ
US
Spain
UK
US
Germany
Germany
Italy
UK
US
Italy
Brazil
India
US
Source: Similarweb.com. Note: *Data from November 2015, accessed January 2016.
Board and management
One of MUA’s key strengths is the quality of its leadership team, which at both board and senior
management level delivers an outstanding record for building businesses of this type.

Prior to being appointed MUA's chairman in March 2015, Simon Baker was a paid member of
the Mitula Classified advisory board since late 2010. He is the former CEO and managing
director of ASX-listed REA Group from 2001-08, taking it from start-up stage to an annual
revenue base of A$155.6m in FY08 and EBITDA of A$36.6m in the same year. Simon was
director and chairman of ASX-listed iProperty Group from 2009-12, overseeing the growth of
the business from a share price of A$0.08 to a high of A$1.32/share. Simon is currently
chairman of recently ASX-listed Real Estate Investar (REV.AX) and he continues to be an
angel investor in several online classifieds and e-commerce companies around the world
including Property Portal Watch, CarAdvice, ArtsHub, Vivareal, Redbubble, LaEncontre,
ListGlobally and Transmit Data.

Chief executive officer and executive director Gonzalo del Pozo co-founded Mitula Classified
in 2009 and was a member of its advisory board until Mitula Group was formed in March 2015.
Gonzalo also co-founded and was the former CEO of Ediciones Globaliza SL, which owned
Globaliza.com, a leading property portal in Spain that was partially sold to Unidad Editorial in
2009. He is a director and major shareholder in Inception Capital SL, an investment fund with
more than 10 investments in internet companies. Gonzalo is also a director and member of the
investment committee of Onza Venture Capital Investments, a limited liability venture capital
firm entered on the official register of venture capital entities at the Spanish National Securities
Market Commission.
Mitula Group | 29 March 2016
10

Non-executive director Joe Hanna became an investor in Mitula Classified in 2010 and
between 2010 and 2012 assisted the group in establishing its presence in key South-East
Asian markets in in developing product and technology strategy. Joe is currently a nonexecutive director of recently ASX-listed Real Estate Investar (REV.AX) and is co-founder and
current CEO of xLabs Pty, a Melbourne-based technology start up.

Non-executive director Gonzalo Ortiz is a co-founder of Mitula Classified and a former
member of its advisory board. Gonzalo is also co-founder and chairman of Ediciones Globaliza,
chairman and managing director of Inception Capital, and investment general manager and
member of the investment committee of Onza Capital. He is co-founder of trazada.com, an
online marketing company sold in 2011 to QDQ Group, part of the listed French company
Pages Jaunes.

Non-executive director Sol Wise was appointed to the board in March 2015 and is chairman of
the audit and risk committee. Sol spent five years (2004-10) with REA Group as group financial
controller, reporting to the CFO. He is currently CFO of STB Holdings, the adviser to CAV
Investment Holdings, an investment group associated with Simon Baker specialising in
investment in online classifieds businesses worldwide.
Sensitivities
Google AdSense terms: Around 35% of MUA’s revenues are from Google AdSense
advertisements on its websites. Google may change the current arrangements at any time, which
could prove unfavourable to MUA. This includes changing the percentage of revenue shared by
Google and MUA. Google can also terminate the arrangement with Mitula at any time, which would
have a material adverse impact on MUA. We estimate that without the revenues from Google
AdSense, our CY16 EPS estimates would fall by 40% and our DCF valuation would drop to A$1.38.
Changes to search algorithms: Search engines are a key driver of traffic to websites. The higher
Mitula’s websites rank among search results on general search websites such as Google, the more
likely those websites will be to receive user visits. Any change to a search engine’s algorithms,
which determine the rankings of search results, or changes to a search engine’s terms of service,
could adversely affect MUA’s websites’ rankings. This would result in a decline in users visiting the
websites and affect MUA’s ability to provide click-outs to its advertisers.
Foreign currency risk: MUA reports its financial performance in Australian dollars, consistent with
its Australian listing. However, most of the group’s costs, expenses, investments and revenues are
generated in other denominations, so the company’s financial performance will be influenced by
fluctuations in the exchange rates between the Australian dollar and its operating currencies,
2
primarily the euro, US dollar, British pound and Brazilian real. The company’s prospectus
highlights that a +/-10% change in the euro against the Australian dollar would result in CY15
EBITDA increasing/declining by A$0.86m while the same change in the British pound against the
Australian dollar would result in a +/- A$0.24m change in CY15 EBITDA.
Other sensitivities: MUA could be exposed to a loss of key personnel both at board and senior
management level; to industry consolidation that could reduce the demand for paid search, and
hence MUA’s services;; to traffic acquisition that fails to translate into additional users being
attracted to MUA’s websites; and to execution risk if MUA fails to continue to roll out its brands
across new markets or fails to continue to grow its paying advertiser base as per its stated strategy.
2
Mitula Group Prospectus, June 2015, page 86, sensitivity analysis on pro forma forecast EBITDA for CY15
and 12 months to June 2016.
Mitula Group | 29 March 2016
11
Valuation: Blended valuation is A$1.36/share
We have used a blend of DCF methodology and peer comparison to value MUA, arriving at
A$1.36/share. The DCF methodology captures the rapid growth in free cash flow anticipated over
the next few years. However, we have also considered MUA’s listed peers as a cross-check against
the DCF method. Our DCF valuation uses a WACC of 12.0%, beta of 1.2 and terminal growth rate
of 2.0%, which we consider conservative given the high growth forecasted for the global paid
search sector for the foreseeable future. As Exhibit 12 highlights, we arrive at an equity value of
A$297m, which is at a ~40% premium to the company’s current market capitalisation. Our valuation
per share of A$1.40/share incorporates 2.8m in-the-money options, which have a November 2018
conversion date.
Exhibit 12: DCF valuation parameters
WACC
Beta
Terminal growth rate
PV of cash flows (A$m)
Terminal value (A$m)
Net cash at 31 December 2015
Equity value (A$m)
Value per share (A$)*
12.0%
1.2
2.0%
144.9
130.6
21.0
296.5
$1.40
Source: Edison Investment Research. *Note: 2.8m in-the-money options included in share count.
We have also considered MUA’s peer group as part of the valuation process. Exhibit 13 highlights
the list of global online classifieds peers, including traditional media companies such as Axel
Springer, Fairfax Media and Schibsted, all of which have developed strong online classifieds
platforms. As the following table shows, the median EV/EBITDA of the group is 18.6x. It should be
noted that the median EBITDA margin is 38.2% while the median operating margin is 32.4% –
substantially lower than Mitula’s pro forma historical and forecast EBITDA and operating margins
(EBITDA range from CY14-18: 39-50%; EBIT range from CY14-18: 38-49%). Applying the peer
group’s median EV/EBITDA multiple of 18.6x to our FY16e EBITDA forecast (and after implying a
10% discount for MUA’s size), the implied valuation is A$1.31/share.
Exhibit 13: Peer comparison
Price
Mkt cap (m)
(in local
currency)
Mkt cap in
US$m
JPY
JPY
Euro
A$
1,180.00
3,480.00
46.28
11.56
140,171
1,967,314
4,993
1,186
16,649
5,420
1,947
US
US$
23.69
Australia
US
Italy
A$
US$
€
0.76
732.17
0.82
Naspers**
South Africa
Seek
Australia
REA Group
Australia
Rightmove
UK
Schibsted
Norway
Trade Me
NZ/Australia
Zillow
US
Zoopla
UK
Classifieds and search companies
ZAR
A$
A$
£
NOK
NZ$
US$
£
189,203
16.19
51.67
3,811.00
225.80
4.35
22.52
235.10
Median
Company
Country Currency
Next Co
Recruit Holdings
Axel Springer
Carsales
Japan
Japan
Germany
Australia
eBay Classifieds Group
Fairfax Media
Google
Immobiliare
2,784
27,924
1,736
496,098
667
829,823
5,576
6,806
3,618
51,630
1,728
4,067
983
Forward 12- Forward 12- EBITDA Operating
month P/E
month margin
margin
(x) EV/EBITDA
(%)
(%)
(x)
94.4
41.8
18.4
13.1
27.3
8.8
14.6
9.3
19.5
9.9
17.9
12.4
25.7
18.6
49.7
48.0
27,924
13.1
8.2
38.2
29.4
1,214
496,098
724
12.0
22.8
7.4
12.5
18.8
12.4
45.7
68.2
8.7
36.7
70.1
175.0
14.9
20.2
23.2
21.6
13.4
43.5
20.4
18.6
6.7
45.4
59.3
74.3
15.4
77.6
9.6
36.9
38.2
2.3
39.7
54.2
73.6
11.0
68.4
5.1
32.4
32.4
50,529
3,899
4,759
5,214
5,884
1,128
4,067
1,416
4,067.4
12.1
9,933.0
30.2
32.8
29.0
86.8
20.9
302.7
2,447.6
27.3
Source: Bloomberg. Note: *Prices at 11 March 2016; **Excluded as an outlier.
Mitula Group | 29 March 2016
12
Scenario analysis
We have undertaken a scenario analysis on our DCF valuation and CY16 forecasts to show the
potential upside and downside risks to our forecasts and valuation in the event of lower or higher
sales revenue, Google cuts to AdSense and higher traffic acquisition costs. Exhibit 14 sets out the
impact of these scenarios. It is worth noting that the current share price of A$1.00 implies that sales
will be ~18% below our forecasts and EBITDA margins will remain static at 45% until CY18.
Exhibit 14: Scenario analysis on CY16 forecasts and DCF valuation
Current
Revenue (A$m)
Gross margin (A$m)
EBITDA (A$m)
EPS (c)
DCF per share
32.2
28.3
15.4
5.3
$1.40
Sales
Sales
Sales
Sales
growth rates growth rates growth rates growth rates
+10%
+20%
-10%
-20%
33.2
34.2
31.3
30.3
29.2
30.0
27.5
26.6
16.3
17.2
14.6
13.7
5.6
5.9
5.0
4.7
$1.66
$1.95
$1.17
$0.96
Traffic Google cuts
acquisition
AdSense
costs +20%
32.2
25.37
27.5
22.29
14.7
9.41
5.0
3.15
$1.34
$1.38
Source: Edison Investment Research
Financials
Mitula Group raised gross proceeds of A$26.52m in an initial public offering in July 2015. The offer
was priced at A$0.75/share with A$14.5m of the proceeds raised going towards strengthening
MUA’s balance sheet for potential acquisitions, augmenting its position in existing markets and
expanding into new markets and new verticals. The company has noted in its prospectus that it
sees an opportunity to roll out the holiday rentals vertical in countries where it is not operating with
trials underway in Spain, Mexico and Argentina. We see other potential verticals as general
classifieds, e-commerce or specific country verticals.
The company’s year-end is December, and it has reported statutory and pro forma accounts for
calendar (CY) 2015; however, it will also report the same for the year to June (FY) 2016. The pro
forma accounts demonstrate MUA’s results had it owned Lokku for the full period and had it been
listed for the entire period, and also excludes costs related to the issue, public company costs, and
non-operating and non-recurring charges. The following exhibit demonstrates the company’s
performance on a pro forma basis from CY12-15 in terms of profit & loss, including the contribution
that would have been made by Lokku if it had been owned by MUA for this period.
Exhibit 15: Pro forma profit & loss statement CY12-15
A$000s
Revenue
Traffic acquisition costs
Gross profit
Gross profit margin (%)
EBITDA
EBITDA margin (%)
Profit before tax
NPAT
CY12
8,120
(1,827)
6,293
78%
990
12%
906
638
CY13
10,568
(1779)
8,789
83%
2,647
25%
2,450
1,818
CY14
16,209
(1,946)
14,263
88%
6,264
39%
6,223
4,608
CY15
22,537
(2,739)
19,798
88%
10,342
46%
10,020
7,981
CAGR %
29
11
33
3
80
39
82
88
Source: Mitula Group prospectus, June 2015, Mitula CY15 results release 29 February 2015
Mitula reported its CY15 results on 29 February 2016 and revealed that it had achieved its pro
forma forecast, having exceeded its forecast for gross profit and NPAT, despite delivering slightly
lower than forecast revenue and EBITDA, as Exhibit 16 demonstrates.
Mitula Group | 29 March 2016
13
Exhibit 16: MUA company pro forma forecast and actual for CY15
CY15 prospectus pro
forma forecast
22,705
-3,033
19,672
87%
10,422
46%
10,481
7,751
A$000s
Revenue
Traffic acquisition costs
Gross profit
Gross profit margin (%)
EBITDA
EBITDA margin (%)
Profit before tax
NPAT
CY15 pro forma actual
22,537
-2,739
19,798
88%
10,342
46%
10,020
7,981
Source: Mitula CY2015 results release February 29, 2015
Exhibit 17 sets out MUA’s CY15 result on a statutory and pro forma basis.
Exhibit 17: MUA’s statutory and pro forma earnings results for CY15
A$m
Revenue
Gross profit
EBITDA
EBIT
NPAT
CY15a statutory
20.6
18.1
7.6
6.4
2.6
CY15a pro forma
22.5
19.8
10.3
10.1
8.0
Source: Mitula CY2015 results release February 29, 2015
MUA has also provided a prospectus forecast for the 12 months to June 2016, which we have set
out in Exhibit 18. We have also included Edison’s forecast for the same period, having incorporated
the Nuroa acquisition into these forecasts.
Exhibit 18: MUA prospectus forecast for 12 months to June 2016 vs Edison forecast
MUA prospectus June
2016e
26.2
22.5
86%
13.3
13.1
13.4
10.1
Revenue
Gross profit
Gross profit margin
EBITDA
EBIT
PBT
NPAT
Edison June 2016e
27.1
23.4
86%
12.7
11.1
12.6
10.2
Source: Mitula Group prospectus, Edison Investment Research
Exhibit 19 following sets out Edison’s forecasts for MUA’s P&L from CY2016e-CY2018e and
includes the Nuroa acquisition.
Exhibit 19: Edison’s estimates for CY16-18e
12 months ending 31 Dec
Revenue
Gross profit
Gross profit margin
EBITDA
EBIT**
PBT**
NPAT**
2016e
32.2
28.3
87.8%
15.4
14.1
15.9
12.0
2017e
42.8
37.6
87.8%
20.8
19.7
21.6
16.2
2018e
51.7
45.4
87.8%
25.6
24.6
26.7
20.0
Source: Edison Investment Research. Note: *Normalised for acquired intangible amortisation.
MUA segments its revenues and gross profits into three geographic regions – the Americas, Asia
Pacific and Europe, Middle East and Africa (EMEA). The latter has historically generated the bulk of
revenues and gross profits, as Exhibits 20 and 21 show. While we anticipate that EMEA will remain
the largest contributor to revenues and gross profits in CY16, we expect significant growth from the
Americas and Asia Pacific, particularly third-world markets where online classifieds penetration is
still relatively low.
Mitula Group | 29 March 2016
14
Exhibit 20: Actual and forecast revenue by region
CY12-18e
Exhibit 21: Actual and forecast gross profit by region
CY12-18e
50.0
A$millions
40.0
A$millions
30.0
20.0
10.0
0.0
2012a
2013A
Americas
2014a
2015a
Asia Pacific
2016e
2017e
2018e
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2012a
2013A
Americas
Europe, Middle East, Africa
Source: Company data, Edison Investment Research. Note: Pro
forma used for CY12-15.
2014a
2015a
Asia Pacific
2016e
2017e
2018e
Europe, Middle East, Africa
Source: Company data, Edison Investment Research. Note: Pro
forma used for CY12-15.
The group’s main cost is people. Employment expenses on a pro forma basis accounted for 61% of
total operating and corporate costs in CY15, and we are forecasting for this to rise to 63% in CY16e
and up to 64% by CY18e. Overall, we are forecasting costs to increase by 36% in CY16e and for
costs growth to drop to 18% by CY18, as Exhibit 22 highlights.
Exhibit 22: Historical pro forma and forecast operating Exhibit 23: Costs as a percentage of revenue, CY12costs breakdown and y-o-y % change in total
18e
operating costs
A$millions
15.0
10.0
5.0
0.0
2012a
2013a
2014a
2015a
Staff costs
Operational expenses
2016e
2017e
2018e
Percentage change y-o-y
20.0
40%
35%
30%
25%
20%
15%
10%
5%
0%
Technology costs
Office expenses
Source: Mitula Group Prospectus, June 2015, Edison Investment
Research. Note: Pro forma used for CY12-15.
Percentage of revenue
50%
25.0
40%
30%
20%
10%
0%
2012a
2013a
Traffic acquisition costs
Operational expenses
2014a
2015a
Staff costs
Office expenses
2016e
2017e
2018e
Technology costs
Corporate expenses
Source: Mitula Group Prospectus, June 2015; Edison Investment
Research. Note: Pro forma information used for CY12-15.
As a proportion of revenue, staff costs are forecasted to decline from 26% of revenue in CY15 to
21% in CY18e with MUA benefiting from the operating leverage of creating more websites across
countries and verticals with fewer additional employees. The company’s other major expense is
traffic acquisition costs, which makes up costs of goods sold. For the past two years, traffic
acquisition costs have stabilised at 12% of revenues and are not expected to grow beyond 13% of
revenues.
Cash flow
Mitula has historically generated strong free cash flow from its operations. As Mitula Classifieds, the
company reported net free cash flows of A$0.4m, A$0.8m, A$3.9m, and A$8.8m respectively for
CY12, CY13, CY14, and CY15. The Lokku acquisition included in the following exhibit on a pro
forma basis for CY14 and CY15, added to those cash flows. We are forecasting net cash flows to
grow at a compound rate of 41% from CY15-18e. As the following exhibit demonstrates, we are
anticipating free cash flow as a percentage of EBITDA to hover at ~75% for the next three years.
Mitula Group | 29 March 2016
15
Exhibit 24: Actual and forecast operating and net free cash flow and free cash flow as a
percentage of EBITDA
25.0
20.0
A$millions
10.0
5.0
0.0
2014a
Operating cashflow
2015a
Net free cashflow
2016e
2017e
2018e
Percentage
15.0
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Free cashflow as a percentage of EBITDA
Source: Company data, Edison Investment Research. Note: Pro forma data used for CY14 and CY15.
Balance sheet
MUA ended the 12 months to 31 December 2015 with net cash of A$21.0m, having added A$3.0m
to its cash position in the final three months of the year. We expect continued growth in free cash
flows to support its growth initiatives. We anticipate that without making acquisitions or paying
dividends to shareholders, the company’s net cash position at the end of CY18 will rise to ~A$64m.
Mitula Group | 29 March 2016
16
Exhibit 25: Financial summary
A$000s
31 December
PROFIT & LOSS
Revenue
Cost of Sales
Gross Profit
EBITDA
Operating Profit (before amort. and except.)
Intangible Amortisation
Exceptionals
Other
Operating Profit
Net Interest
Profit Before Tax (norm)
Profit Before Tax (FRS 3)
Tax
Profit After Tax (norm)
Profit After Tax (FRS 3)
2015
IFRS
2016e
IFRS
2017e
IFRS
2018e
IFRS
20,568
(2,511)
18,057
9,543
9,321
(881)
(1,424)
(857)
6,158
(1,772)
7,549
4,387
(1,798)
5,751
2,589
32,239
(3,918)
28,321
15,448
15,223
(1,080)
0
0
14,143
664
15,887
14,807
(3,850)
12,037
10,957
42,751
(5,196)
37,556
20,821
20,562
(875)
0
0
19,687
993
21,555
20,681
(5,377)
16,178
15,304
51,673
(6,280)
45,393
25,621
25,265
(709)
0
0
24,556
1,481
26,746
26,037
(6,770)
19,976
19,267
Average Number of Shares Outstanding (m)
EPS - normalised (c )
EPS - normalised and fully diluted (c )
EPS - (IFRS) (c )
Dividend per share (c )*
189.2
3.04
3.02
1.37
0.0
208.8
5.76
5.69
5.25
0.0
208.8
7.75
7.65
7.33
0.0
208.8
9.44
9.44
9.10
0.0
87.8
46.4
45.3
87.8
47.9
47.2
87.8
48.7
48.1
87.8
49.6
48.9
11,748
10,770
729
249
24,890
0
3,885
21,003
2
(2,220)
(2,220)
0
(1,686)
0
(1,686)
32,732
15,878
14,260
1,369
249
31,588
0
2,167
29,419
2
(1,991)
(1,991)
0
(1,686)
0
(1,686)
43,789
15,601
13,386
1,967
249
47,593
0
2,874
44,717
2
(2,415)
(2,415)
0
(1,686)
0
(1,686)
59,093
15,389
12,677
2,463
249
67,431
0
3,473
63,956
2
(2,774)
(2,774)
0
(1,686)
0
(1,686)
78,360
8,797
(1,772)
(2,672)
(654)
(8,266)
23,744
(2,896)
16,280
(4,197)
0
526
(21,003)
16,937
664
(3,850)
(865)
(4,470)
0
0
8,416
(21,003)
0
0
(29,419)
20,538
993
(5,377)
(857)
0
0
0
15,298
(29,419)
0
(0)
(44,717)
25,381
1,481
(6,770)
(853)
0
0
0
19,239
(44,717)
0
0
(63,956)
Gross Margin (%)
EBITDA Margin (%)
Operating Margin (before GW and except.) (%)
BALANCE SHEET
Fixed Assets
Intangible Assets
Tangible Assets
Investments
Current Assets
Stocks
Debtors
Cash
Other
Current Liabilities
Creditors
Short term borrowings
Long Term Liabilities
Long term borrowings
Other long term liabilities
Net Assets
CASH FLOW
Operating Cash Flow
Net Interest
Tax
Capex inc R&D
Acquisitions/disposals
Financing
Dividends
Net Cash Flow
Opening net debt/(cash)
HP finance leases initiated
Other
Closing net debt/(cash)
Source: Company data, Edison Investment Research. Note: *Not reflecting €2.1m (A$2.9m) extraordinary dividend paid by Mitula
Classifieds prior to the IPO.
Mitula Group | 29 March 2016
17
Contact details
Calle Enrique Granados 6
Edificio IMCE B
Pozuelo de Alarcón, Madrid, 28224
Spain
www.mitulagroup.com
Revenue by geography
%
31%
Americas
17%
Asia Pac
52%
EMEA
Management team
Chief Executive Officer, Executive Director: Gonzalo del Pozo
Chief Operations Officer: Marcelo Badimon
Gonzalo del Pozo is the co-founder of Mitula Classified and a member of its
advisory board. He was appointed CEO of Mitula Group on 17 April 2015. He is
former CEO of Ediciones Globaliza, a leading property portal operating in Spain.
Gonzalo holds a Bachelor of science with a major in electrical and electronics
engineering from Suffolk University, England.
Marcelo Badimon is a co-founder of Mitula Classified and was appointed chief
operations officer of Mitula Group on 17 April 2015, responsible for managing the
day-to-day operations and product and technology across the group. He holds a
Bachelor of industrial engineering from the University of Madrid, Spain.
Chief Financial Officer: Ricardo Gomez de Olea
Head of Traffic Acquisition: Javier Heras
Ricardo Gomez de Olea was appointed CFO of Mitula Group on 17 April 2015,
having served as CFO of Mitula Classifieds since September 2009. He holds a
Bachelor of business administration from the University of Madrid and a Master
of business administration from Escuela de Organizacion Industrial, Spain.
Javier Heras joined Mitula Classified in 2009 as a software engineer. He was
appointed head of traffic acquisition in June 2013, a role he now serves with
Mitula Group. He is responsible for traffic acquisition through SEO technology
and Google AdSense implementation across the websites. Javier holds a
Bachelor of software engineering from the University of Madrid, Spain.
Principal shareholders
(%)
Velingadu SL
Gonzalo Ortiz (Dir)
Gonzalo del Pozo (CEO/Dir)
Basilian Investments SRL
Marcelo Badimon
Tecmedia Sevicios Y Consultoria SL
Bruno Consultores SL
9.4
9.3
8.8
8.4
7.7
6.7
5.7
Companies named in this report
Alphabet Inc (GOOGL), Carsales (CAR.AX), Fairfax Media (FXJ.AX), Next Co Ltd (2120.TYO),), Real Estate Investar (REV.AX) REA Group (REA.AX), Rightmove
(RMV.L), Seek (SEK.AX), Trade Me (TMX.AX/TMX.NZ), Zillow (Z.NASDAQ), Zoopla (ZPLA.L)
Mitula Group | 29 March 2016
18
Mitula Group | 29 March 2016
19
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