The publication of its full-year financial results prompted a 15 per cent surge in Rightmove (RMV) shares. Investors may have been overly worried about the potential effect on the group's market position of agency-led rival onthemarket.com. If anything, the new website seems to have strengthened Rightmove as the dominant player in online property listing.
This new dynamic was previously flagged by Zoopla (ZPLA), which acknowledged it had suffered more than Rightmove from onthemarket.com's requirement that its members quit one of the two established websites before signing up. Agency customer numbers rose 4 per cent in 2014, and were unchanged on the year-end total at the end of February. Chief executive Nick McKittrick said "nearly every agent in the UK" had stuck with the company.
The 20 per cent increase in Rightmove's underlying operating profit - helped by a 13 per cent increase in average revenue per advertiser - was ahead of forecasts. A parallel 19 per cent improvement in estate agent leads to 42.8m suggests the platform is becoming ever more effective at connecting agents with homebuyers.
Analysts at Numis Securities forecast year-end EPS of 111p, up 12 per cent.
| RIGHTMOVE (RMV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 3,066p | MARKET VALUE: | £3.0bn | |
| TOUCH: | 3063-3066p | 12-MONTH HIGH / LOW: | 3,074p | 1,935p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 2.5p* | NET CASH: | £11.2m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 82 | 52.2 | 35.7 | 14 |
| 2011 | 97 | 62.7 | 43.9 | 18 |
| 2012 | 119 | 83.2 | 61.3 | 23 |
| 2013 | 140 | 97.0 | 74.1 | 28 |
| 2014 | 167 | 122 | 97.7 | 35 |
| % change | +19 | +26 | +32 | +20 |
Ex-div: 7 May Payment: 5 Jun *Includes intangible assets of £1.6m, or 1.6p a share | ||||
