Global media company Schibsted has strengthened its position in the rapidly growing Brazilian online classifieds site OLX.com.br by increasing its ownership from 25 to 50 percent.
Schibsted's press release states the change is a consequence of the publisher taking over Telenor's share of SnT Classifeds, which in its turn controls 50 percent of OLX Brazil and 100 percent of Yapo in Chile.
This move signifies strategic thinking on behalf of Schibsted as OLX Brazil is the country's biggest online classifieds site with 6.3 million daily active users - this represents a daily reach of 5 percent in Brazil.
Schibsted's CEO Rolv Erik Ryssdal said the company continued to invest in emerging markets.
"I am very happy to announce that Schibsted is increasing its exposure to one of the greatest successes in online classifieds in emerging markets, OLX Brazil," Ryssdal said. "The underlying development is very strong, we are excited about the further prospects for strong growth both here and in Chile."
Gianpaolo Santorsola, the EVP of Emerging Markets at Schibsted, says the company's decision to invest more in OLX Brazil was indicative of their plan to push their presence in Latin America.
"It makes strong strategic and financial logic sense for Schibsted to increase our stakes in Brazil and Chile, and at the same time exit some Asian markets," Santorsola said. "We now have a cluster of very interesting market leading online classifieds sites not only in Brazil and Chile, but also in Mexico, Colombia and the Dominican Republic. In total, our footprint covers a LatAm population of 400 million."
Revenues of OLX Brazil reached BRL 99 million in 2016, which represented a growth of 120 percent compared to 2015. During 2016, OLX Brazil successfully introduced monetization of the professional content in both cars and real estate. The growth momentum is strong, and in Q1 2017, the revenue growth rate accelerated further. Continued high growth is expected.