Move Inc, the owner and operator of move.com, realtor.com and Top Producer is trading at 5 year lows - can they turn around the business?
Not since April 2003 has move.com traded at lower price levels. In those days, the business was coming out of the scandal of the early 2000's in which revenues had been incorrectly inflated. The challenges that Move faces today are far different.
Firstly the business is highly diverse. They have the following operations:
Secondly, the business is being attacked from multiple sides - most obviously by zillow.com and trulia.com - who are competing for eyeballs and the advertising dollars.
Finally, the business is being compared with similar listed business in other countries that are performing significantly better. These businesses are generating up to 50% EBITDA margins while Move Inc manages only to break even.
|Market Cap 24 Nov||12 Months to 30 June 2008|
|Company||Currency||Local Currency (m)||US$ (m)||REV (m)||EBITDA (m)||EBITDA %||NPAT (m)||NPAT %|
|Seloger||Euro||€ 192||$246||€ 57||€ 30||52%||€ 14||24%|
So what can they do?
Here are the top 5 things that they can do to potentially move the business in the right direction.