Sweden (Blocket/Byt Bil)

Blocket is spending resources on developing new revenue models, and has launched products in both the property and jobs segments. These products have been positively received by the market, but strained the EBITDA in the start-up phase.

Blocket

2011 proved to be a good year for Blocket in terms of revenues from both classifieds and display-based advertising.

The number of classifieds continued to grow during the course of 2011. The strong growth in auto advertisements from private advertisers had a positive impact on revenues.

Blocket Jobb (Jobs) was launched in August 2011. The website got off to a good start, and already by October it was one of the three largest websites for job seekers in terms of unique users and number of advertisements.

In September Blocket Bostad (Property) launched a new section for advertisements from estate agents. This section accommodates needs and requests from estate agents, buyers and sellers.

The investments in the job and property markets are contributing in the reduction of the EBITDA margin in Blocket in 2011.

Blocket Shopping (formerly Blocket e-handel) continues to show a positive trend. A new section for clothing launched in November was well received.

The use of mobile devices underwent a rapid growth in Sweden in 2011 and has had a significant impact on Blocket. Historically, mobile has accounted for a mere fraction of the traffic volumes, but this situation changed in 2011. Today, traffic from mobile devices accounts for a significant share of the website's total traffic volume.

BLOCKET'S AMBITIONS

• Continue to consolidate our position as the simplest, safest and most effective online marketplace in Sweden.
• Strengthen the positions of Blocket Jobb (Jobs) and Blocket Bostad (Property).
• Develop Blocket Shopping and launch more categories.
• Develop and improve mobile platforms and start the sale of display-based advertisements.

Byt Bil

Bytbil.com was established in 1997 and has since built and developed its business model:

• to provide a fast and efficient marketplace for the auto industry.
• Develop and operate web-based systems for dealers.

Bytbil.com offers vehicles for both transport of passengers and goods, caravans, motor homes, and motorcycles from 2,350 dealers. Bytbil's services are web-based in the form of an ASP (Appplication Service Provider). Operation, support and training are included in the service, which is sold as a subscription.

Bytbil also sells display-based advertisements and integrated advertising solutions. Bytbil will continue to develop and offer web-based services such as mobile solutions to importers and dealers.