Global classifieds business Mitula Group has reported a strong financial start to 2017, which its CEO says can be attributed to its 'closer to the transaction' strategy that focuses on capturing more value from existing visits through advertising and transaction-based products and services.
Mitula operates more than 100 vertical search sites across property, employment, motoring and fashion and 10 property portals in more than 50 different countries. Its financial growth in the first quarter of the year was highlighted by a 30.2 per cent increase in quarterly revenue over the previous corresponding period to a record $8.2m and yield per visit increasing by 21.2% to 4.0 cents.
Gonzalo del Pozo, Mitula Group CEO, attributes the company's strong performance to the continued implementation of the company’s ‘closer to the transaction’ strategy, which it announced in 2016.
“We had a good start to the 2017 financial year, in particular we delivered record quarterly revenue and strong growth in yield per visit," del Pozo said.
“We are focusing efforts on implementing our ‘closer to the transaction’ strategy which, in selected markets, reduces our reliance on click-based revenues by becoming a more balanced business with new advertising and transaction-based revenues that have significantly higher growth potential.
“This strategy reduces our reliance on the volume of visits to our network and focuses more on identifying high-value visitors and capturing greater value from these visits. A clear outcome of this was 16.9% of revenue earned from advertising and transaction-based products and services and a 21.2% increase in yield per visit," del Pozo said.