Rightmove PLC (LSE:RMV) has announced plans to return more than £400 million to shareholders over the next year, despite cutting its revenue growth forecast as weakness among housebuilders weighed on its New Homes business.
The property portal will begin a share buyback programme worth up to £350 million on Monday. It expects to complete around £330 million of repurchases by July 2027, alongside dividend payments.
The increased returns will be funded through operating cash flow and a new £200 million revolving credit facility.
Revenue rose 7% to £225.8 million in the first half, while operating profit increased 2% to £148.2 million. Underlying earnings per share climbed 6% to 15.6p and the interim dividend was raised 3% to 4.2p.
Agency revenue grew 9%, helped by an 8% rise in average revenue per advertiser and 1% growth in branch membership. Rightmove recorded its highest first-half agency retention rate in more than a decade.
However, new homes revenue increased by only 2% as the number of developments listed on the platform fell 6% year on year. Rightmove said new developments were coming to market at the lowest rate on record.
The company now expects revenue growth of 6-8% in 2026, down from its previous forecast of 8-10%. Guidance for underlying operating profit growth of 3-5% was unchanged.
Chief executive Johan Svanstrom said that "current volume headwinds in New Homes" had not dented his confidence in the business.
He also sought to address any investor concerns over the threat from AI, pointing to early results showing that its AI tools increased valuation leads by 50% and time spent on the site by 40%.
