logo-loader

Rightmove revenues jump 10% as per advertiser earnings top £1,000 per month

Last updated: 10:03 01 Mar 2019 GMT, First published: 07:53 01 Mar 2019 GMT

House on money
Rightmove also increased its final dividend by 11% to 4p per share

Rightmove PLC’s (LON:RMV) full year revenues jumped 10% in 2018 as its average revenue per advertiser (ARPA) topped £1,000 per month.

The FTSE 100 group reported that in the year ended 31 December 2018 ARPA had risen by £83 to £1,005 per month, while pre-tax profit was up at £198.6mln from £178.3mln the year before and revenue increased to £267.8mln from £243.3mln.

READ: Double boost for Rightmove as Deutsche upgrades to ‘buy’, whilst major rival Emoov is on the ropes

The uptick in ad revenue was boosted by ongoing traffic growth at the company’s property listing site, which was up over 4% at around 132mln visits per month.

While there had been concerns that a slowdown in the UK property market would hurt estate agents, Rightmove’s primary customer base, the company said that its advertiser numbers had remained at an “all-time high” of around 20,500 as a slight reduction in agency branches was offset by an increase in new home developments.

Looking ahead, the company said despite “continuing uncertainties” arising from Brexit it expected the UK online property advertising market to grow, adding that it was not “materially impacted” by the property market cycle except in extreme circumstances.

“With ARPA continuing to grow and our commitment to further innovation, the Board remains confident of making further progress in 2019.”

As a result of the improved performance, Rightmove increased its final dividend by 11% to 4p per share, taking the total dividend for the year 12% higher to 6.5p.

Despite the positive results, shares fell 5.6% to 455.2p in mid-morning as investors were unsettled by the macro picture.

In a note to clients, analysts at broker Peel Hunt said they believed the competitive environment was “getting tougher” as rival OnTheMarket PLC (LON:OTMP) continued to add more agencies to those already listed on its site and Zoopla was focusing on improving its customer experience.

“On top of this, the trading environment for agents remains tough with housing transactions down c3% in 2018, and the lettings fee ban will come into force in June” the broker added, retaining its ‘Reduce’ rating and 445p target price in the face of the “more challenging trading environment”.

--Adds broker comment and share price--

HANetf founder and co-CEO discusses shift to active management in ETF market

HANetf founder and co-CEO Hector McNeil tells Proactive's Stephen Gunnion about shifting trends in the exchange-traded fund (ETF) market in the United States, indicating a big move towards active management within ETFs. Despite the European market lagging behind the US by three to five years,...

12 hours, 53 minutes ago