And Fairfax shares ended down around 3% at $1.255 after the Carsales sale and the news that the company had paid nearly $30 million for the online holiday rental and corporate accommodation business, Occupancy Pty Limited.
Fairfax said Occupancy lists over 25,000 holiday rental properties through two consumer websites, Rentahome.com.au and Takeabreak.com.au, and generates revenues from booking commissions paid by rental property owners and advertising. Occupancy also maintains websites providing extensive information on travel ideas and destinations, various guides, reviews and event information.
"The acquisition of Occupancy further extends Fairfax Media’s online transaction business. The travel/holiday component of Fairfax’s online transactional portfolio includes Stayz.com.au, the number one brand in online holiday rentals in Australia, Holidayhomes.co.nz in New Zealand and Bookit.co.nz, an online booking technology that services travel suppliers and travel sellers in Australia and New Zealand," yesterday’s statement said.
"The purchase price comprises a combination of cash ($17.9 million) and shares in the combined Stayz/Occupancy business ($11.2 million). That’s a value of $29.1 million.
"Following the transaction, the current shareholders of Occupancy will hold approximately 10% of the combined Stayz/Occupancy business with Fairfax controlling the remainder."
Greg Hywood chief executive officer of Fairfax Media said in yesterday’s statement: “Occupancy is an online transactional business that is growing strongly and has huge market potential. This potential will only be enhanced when coupled with Fairfax Media’s market-leading presence in online travel and excellent digital audiences.
“Occupancy also provides a perfect fit with our stated strategy of expanding in the online transactions sector, where we are committed to further strengthening our position.”
Fairfax acquired Stayz for A$14.3m in 2005 and says the business has developed to the point where it is the leading provider of holiday rentals in the Australian market with 27,000 property listings and over 1 million unique users per month, booking over 800,000 accommodation nights a year. The two Occupancy sites have 25,000 property listings and around 840,000 unique users per month.
Fairfax claims there is significant growth potential in the holiday rentals market online. There are over 200,000 holiday homes available for rent in Australia and 10% of all holiday rentals are booked through Stayz.
Fairfax Media’s audience in the holiday and travel sector includes the Traveller sections on the digital mastheads SMH.com.au, TheAge.com.au, BrisbaneTimes.com.au and WAtoday.com.au, numerous travel and leisure guides such as Blue Mountains Wonderland, Travelways Tasmania, See Canberra and The Australian Senior Traveller, as well as various travel sections in Fairfax Australasian newspapers and magazines.
