Investors sent shares in Zoopla (ZPLA) down 2 per cent on news that its member base shrunk 16 per cent year-on-year to below 16,100 as at 31 March. The decline stemmed from this year's launch of a new rival, Agents' Mutual's onthemarket.com, which restricts its estate agent members to only one other property portal. Most have chosen to stick with Rightmove (RMV) rather than Zoopla. Yet strip out one-off costs and the group's cash profits still rose 14 per cent to £21.4m.
Product launches and improved marketing fuelled an 11 per cent increase in average monthly visits to Zoopla's websites and mobile apps. The strategy led to more of its key clients - estate agents - upgrading to premium offerings. That boosted average monthly revenues from agents by 13 per cent to £353, offsetting the decline in numbers. Zoopla also grew its developer and overseas member bases - the latter by 89 per cent, albeit from a small base.
The worst of onthemarket.com's impact on Zoopla may now be over: it lost just 106 UK agents in April, and management expects departures to return to normal levels this year. Zoopla's recently agreed purchase of uSwitch, a fast-growing price-comparison site for energy and communications, will also diversify the business.
Broker Numis expects full-year pre-tax profits of £46.2m, giving EPS of 8.8p (from £39.7m and 7.2p in 2014).
| ZOOPLA (ZPLA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 227p | MARKET VALUE: | £949m | |
| TOUCH: | 224-227p | 12-MONTH HIGH: | 275p | LOW: 151p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 41 | |
| NET ASSET VALUE: | 26p* | NET CASH: | £38.8m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 38.3 | 16.3 | 3.1 | nil |
| 2015 | 42.0 | 18.4 | 3.5 | 1.0 |
| % change | +9 | +13 | +13 | - |
Ex-div: 28 May Payment: 24 Jun *Includes intangible assets of £74.5m, or 18p a share | ||||
