Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Jason Helfstein with Oppenheimer & Co.
Jason Helfstein – Oppenheimer & Co.
I have to applaud the decision on Welcome Wagon. Not the outcome but as far as making the decision, obviously it was difficult for a major segment.
So just first on that. So the $20.0 million you’ve targeted in cost savings, would that include any cost savings from Welcome Wagon or because that’s already reported as discontinued ops, the $20.0 million would be incremental.
Lewis R. Belote, III
Jason, it would clearly be over the financial results we presented as continuing operations. So the reduction in Welcome Wagon is not in that $20.0 million.
Jason Helfstein – Oppenheimer & Co.
On the Realtor.com, it was down 1% year-over-year but you said that June and July were up 11%, so effectively, this one client who cancelled really hit August. What does that mean for the third quarter for Realtor.com? And just a bigger picture question, what was your last price increase, or when was your last price increase at Realtor.com and how do you think about pricing for the rest of the year? And has the AB testing had any impact yet on kind of showing the effectiveness and why you should be able to drive price?
Lewis R. Belote, III
I’ll take the first part of that, Jason. Keep in mind that we said sales were up 11%. Those are generally annual contracts so it’s not an 11% increase in revenue in June and July. So if that trend continues, we would expect to see revenues begin to grow, but it’s a tough market out there.
Lorna M. Borenstein
Jason, I’ll take the second part of your question. We haven’t done a price increase on the realtor-based products in some time. In fact, I believe it would have been the early part of 2007, late part of 2006.
W. Michael Long
It’s been a year. We made a decision in this difficult market to not raise prices, for Realtor.com at this point.
Lorna M. Borenstein
And what we are seeing, because we’re not actively selling the new site yet, against the beta. We’re going to get that into full audience release before we’re actually actively selling it, but we’ve been explaining it as we go along to brokers and agents and their reaction is very positive. And obviously our data that we’ve been sharing, the preliminary data, is quite compelling.
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