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Rightmove still top dog, but with a pedigree price tag

The real estate listings company delivers a great set of results for the 2015 financial year
March 1, 2016

Boasting nearly 50 per cent more UK residential properties on its site than any other portal, Rightmove (RMV) keeps its position as the leader in the online property market. In 2015, the number of estate agents advertising with the site increased by 2 per cent to 19,752, and the number of properties displayed increased from 1.1m to 1.2m. Of equal importance was the 10 per cent increase in average revenue per advertiser, as estate agents allocate more of their marketing budget online.

IC TIP: Hold at 3906p

There had been concerns initially about the impact of OnTheMarket.com, a new agent-run property portal that aims to reduce fees. But since OnTheMarket forces agents who use it to choose between the two big online property companies, Rightmove and Zoopla (ZLPA), rather than listing on all three, its introduction has actually helped to strengthen the former's dominance. The market leader attracted 200m more visits in 2015 than in the previous year.

Rightmove remains in a strong cash generative position, with a business model that doesn't depend on capital expenditure or acquisitions. Although no special dividend is being paid this year, the ordinary dividend saw a big hike and the group has continued its long-running share buyback programme.

Off the back of these results, analysts at Numis have increased their 2016 adjusted EPS forecast to 133.5p from 120.1p in 2015.

RIGHTMOVE (RMV)
ORD PRICE:3,906pMARKET VALUE:£3.71bn
TOUCH:3,904p-3,908p12-MONTH HIGH / LOW:4,219p2,634p
DIVIDEND YIELD:1.1%PE RATIO:34
NET ASSET VALUE:7.0p*NET CASH:£8.42m

Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
20119762.743.918
201211983.361.323
201314097.074.128
201416712297.735
201519213711443
% change+15+12+17+23

Ex-div: 5 May

Payment: 3 Jun

*Includes intangible assets of £1.38m, or 1.5p a share