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) 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