Avito.ru could boost revenue 900% in 3-5 years
MOSCOW. April 2 (Interfax) - Online classifieds service Avito.ru could see revenue climb to at least $100 million in 3-5 years, Swedish investment company Vostok Nafta, a co-owner of the service, said.
The operating profit margin is predicted at no less than 70%.
Avito began to generate significant revenue from additional services in 2011, Vostok Nafta said. On the avito.ru website, 3 million new ads were placed in December 2011, 200% more than in the same period of 2010. The number of users reached 20 million in the month and the number of visitors 2 billion.
Avito is "one of the most inspiring components of our portfolio," Vostok Nafta Managing Director Per Brilioth, said, citing the company's annual report. "It is the sixth largest market in the world with over 60 million users, despite internet penetration of just 43% - this indicates potential for serious growth," he said.
Avito revenue was $10 million in 2011, compared to $1 million in 2010. Avito.ru trade turnover (not including the real estate section) was 460 billion rubles (40 billion in 2010).
The company has three main sources of revenue: advertising, additional payment services and its paid store application for small and mid-sized businesses. Avito obtained 50% of its revenue from private users in 2011, 25% from the store section (around 1,700 clients used the service) and 25% from special projects, including Groupon.
Avito.ru expects to triple its indicators in 2012 in terms of users and number of ads. The company plans to increase revenue to $25 million and then to $50 million in 2013.
The Avito.ru service was launched in 2007. The main owners of the service are Swedish companies Kinnevik and Vostok Nafta, which own 50% and 20%, respectively. Co-founders of the service - Avito general director Jonas Nordlander and executive director Filip Engelbert own another 20%.
Vostok Nafta announced last year that in the next few years the value of Avito could reach $1 billion. Engelbert predicted in January 2012 that the value of the service is already at $2 billion