Rightmove 's (RMV) shares recouped most of their post-referendum losses after the property website unveiled solid first-half results and reassured on its outlook. The economic picture is indeed more uncertain following the EU referendum result, and this was cited as a reason why transactions were lower year on year in the second quarter, although stamp duty changes were also a factor. But the company is confident that its subscription model and brand power will help it deliver on expectations this year.
Rightmove has so far seen off challenges from rivals such as agency-run OnTheMarket.com. The former's website clocked up more than 750m visits in the six months to end June, which was 15 per cent more than in the same period a year earlier. It also has 1.1m UK homes listed on its site - 40 per cent more than any other property portal - making it the first port of call for many homebuyers.
A strategy to squeeze more cash out of estate agency customers through selling them advertising extras that help market their properties is also bearing fruit. Average spend per branch rose by more than a tenth to £789. That helped push revenue from Rightmove's agency business up 16 per cent to £82.7m.
Analysts at Numis upped their forecasts, and now expect pre-tax profits of £163m for the year to December, giving EPS of 138p (from £144m and 120p in 2015).
| RIGHTMOVE (RMV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 4,089p | MARKET VALUE: | £3.9bn | |
| TOUCH: | 4,088-4,091p | 12-MONTH HIGH: | 4,280p | LOW: 3,159p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 7.1p | NET CASH: | £9.3m | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 93 | 66.6 | 55.2 | 16.0 |
| 2016 | 108 | 80.6 | 68.4 | 19.0 |
| % change | +16 | +21 | +24 | +19 |
Ex-div: 6 Oct Payment: 4 Nov *Includes intangible assets of £3.5m, or 3.8p a share | ||||
