REG-Rightmove Plc: Trading Statement

RightmoveAnnouncement

27/11/2023 07:15

27 November 2023

 

RIGHTMOVE PLC

TRADING UPDATE AND INVESTOR DAY

 

Robust trading continues

 

A clear investment plan to accelerate revenue and profit growth

 

Rightmove plc, the UK's largest property portal, issues the following update
on trading and on the outlook for the full year, ahead of an investor event to
be held later this afternoon.

 

 

Continued strong performance  

Since we reported our interim results in July, overall revenue growth has
continued to track marginally ahead of consensus expectations, despite
uncertainty in the housing market.  The increase is driven primarily by
higher-than-expected ARPA (average revenue per advertiser). Our performance
underscores the strength and resilience of the business, with both estate
agent subscriptions and new homes development listings stable. Our share of
consumer time in the second half to date remains unchanged - at c85% -
demonstrating the strength of our brand, our position with consumers and the
established network effect of our business model.

 

ARPA set to exceed previous guidance

The strength of demand for our products since we last reported means that we
now expect ARPA growth for the full year to be £112-116, exceeding our
previous guidance of £103-£105.  The majority of the growth has been driven
by new homes developers, who have extended their usage of our Native Search
Adverts and Advanced Development Listing products to sell their
developments.  Estate agents have continued to build their pipelines using a
mix of branding, lead-generation and property products. 

 

Other business units performing as expected

Our Commercial Real Estate business unit remains on track to deliver its
expected full year revenues, continuing to grow as planned.  We have also
continued to make good strategic progress with our Mortgages business, and
just last week, we took an important strategic step by launching our first
broker product, to enable consumers applying for a mortgage to access brokered
advice through our site. 

 

Confidence in full year outlook

The overall full year outlook for 2023 remains at least in line with our
previous guidance. In terms of performance, we expect:
* ARPA growth of £112-£116
* Revenue growth of 8% -10% 
* Underlying Operating Profit growth of 7-8%
* Underlying margin of c73%
 

Investor Day

As previously announced, we are hosting an Investor Day at the London Stock
Exchange today, where we will set out our plans to accelerate revenue and
profit growth in the medium and longer term, both in the core business and in
our identified strategic growth areas of Commercial Real Estate, Rentals and
Mortgages.  We will set out the detail of our plans to deliver the following
by 2028:

 

 Metric                          2028 target  
 Revenue                         >£600m       
 Commercial Real Estate revenue  >£35m        
 Mortgages revenues              >£25m        
 Underlying Operating Profit     >£420m       

The event will commence at 1:30pm at the London Stock Exchange for
pre-registered sell-side analysts and investors and will be available to view
via our webcast here: Rightmove Investor Day 2023 (media-server.com)
(https://edge.media-server.com/mmc/p/82cxiwws/)  Our investor website
https://plc.rightmove.co.uk/investors will display both the webcast and
supporting materials post the event.

 

 

Johan Svanstrom, CEO, said: 

"The momentum that we reported in July has continued through the third quarter
and beyond. The strength of our performance against an uncertain market
backdrop demonstrates the strength of the UK consumer affinity to our
platform, the value of the established network effect of our business model,
the depth and richness of our consumer data, and the value that our customers
place in our products to build their businesses. It also illustrates the
resilience of our business model in all phases of the property market cycle.
We continue to look to the future with confidence and remain focused on the
delivery of our strategic plans, both in our core business and in strategic
growth areas. We look forward to providing more detail at this afternoon's
investor day about our plans to capitalise on the significant growth
opportunities ahead."

 

 

 

 

 

Enquiries:   Investor Relations   Investor.Relations@rightmove.co.uk

Powerscourt   rightmove@powerscourt-group.com

 

 

 

About Rightmove: 

Rightmove is the UK's largest property portal, advertising around 90% of all
homes for sale via estate agents across the UK, representing circa 95% of the
market. Its purpose is to make home moving easier in the UK by creating a
simpler and more efficient property marketplace. 

 

People can search Rightmove for residential resale, new homes, rentals,
commercial property and overseas properties and can use tools and information
on the site - including getting a mortgage in principle, accessing a broker
for mortgage advice, checking local sold prices, property valuations, market
trends, maps and schools.

 

Customers include the following key groups: estate agents, lettings agents,
new homes developers, commercial property operators, mortgage brokers and
overseas property agents.

 

Founded in 2000, Rightmove listed on the London Stock Exchange in 2006 and is
a member of the FTSE 100 index, having produced substantial growth and
consistent returns for its shareholders since IPO.

 

The first Rightmove House Price Index was published in 2002 and is the largest
monthly sample of residential property asking prices and housing market
activity in the UK.

 

For more information, please visit https://plc.rightmove.co.uk/investors

 



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