Rightmove PLC (LSE:RMV) said on Friday it does not expect to be materially impacted by the slowing property market other than in the “most extreme circumstances”.
The online property website made the forecast as it unveiled a 9% increase in full-year revenue in the 12 months to 31 December 2022 to £332.6mln from £304.9mln in 2021 as customers continued to upgrade packages and increase use of digital products.
Operating profit rose 7% to £241.3mln from £226.1mln a year ago, earnings per share improved to 23.8p from 21.8p and a final dividend of 5.2p was declared (2021: 4.8p), giving a total payout of 8.5p, up from 7.8p in 2021.
Average revenue per advertiser (ARPA) rose 11% to £1,314 per month, the second-highest year ever for absolute ARPA growth, while total membership was flat at 19,014 (2021: 18,969), with Agency branches down 178 and New Homes Developments up 223 since the start of the year.
“While we remain alert to the ongoing economic uncertainty, Rightmove is not materially impacted by the property market cycle, other than in the most extreme circumstances,” the company said in a statement.
The strong ARPA growth in the second half in 2022, and the momentum it provides for 2023, gives increased confidence in ARPA growth in 2023.
“We expect customer numbers to follow a similar pattern to that of the second half of 2022,” Rightmove said.
The company plans to focus on profitable revenue growth as it continues to invest in innovation and forecast an underlying operating margin for 2023 of around 73%.