A weakening level of housing transactions pushed down membership figures for Rightmove (RMV) during the first half, as more low-stock estate agency branches were pushed out of business. Membership numbers were down 1 per cent overall for the UK property portal, despite a 10 per cent rise in new home developers.
“Consumers are just hesitant a little bit,” said chief executive Peter Brooks-Johnson. It would be a case of “steady as she goes” during the rest of the year, he added. However, operating profits still rose 10 per cent thanks to a record increase in average revenue per advertiser, which was up £90 on the prior year to £1,077. On the agency-side that was due to more sales of higher value enhanced and optimiser packages and increased membership prices, while developers bought more ancillary products such as digital marketing campaigns.
Analysts at Peel Hunt forecast adjusted pre-tax profits of £213m and EPS of 19.5p for the year to December 2019, up from £198m and 17.7p, respectively, in the prior year.
| RIGHTMOVE (RMV) | ||||
| ORD PRICE: | 502p | MARKET VALUE: | £4.47bn | |
| TOUCH: | 501.5-502.3p | 12-MONTH HIGH: | 588p | LOW: 415p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 5p | NET CASH: | £50m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2018 (restated) | 131 | 98.1 | 8.75 | 2.5 |
| 2019 | 144 | 108 | 9.85 | 2.8 |
| % change | +10 | +10 | +13 | +12 |
| Ex-div: | 03 Oct | |||
| Payment: | 01 Nov |
