The UK’s largest property website Rightmove PLC (LON:RMV) reported continued solid revenue and underlying profits in the first half of the year, despite a fall in transaction numbers.
Revenues of £143.9mln were generated in the six months to 30 June, continuing the 10% growth seen last year, with underlying operating profit also up 10% to £111mln.
Average revenue per advertiser (ARPA) grew more strongly than anticipated, to £1,077 per month up £90 or 9.1%compared to the same period a year ago.
Underlying earnings per share grew 12% to 10.2p and the interim dividend was lifted by the same proportion to 2.8p.
Brooks-Johnson also announced the £16mln cash acquisition of Van Mildert, a profitable provider of tenant referencing services and rent guarantee insurance products, with the price that could increase by £4mln depending on revenue performance.
Agency numbers falling
One downside for Rightmove has been that, while a record 845mln visits were recorded to the site, transaction numbers were down 4.6% year-on-year and agency membership numbers were down 1% since the start of the year as it said some smaller estate agency branches were hit by a lengthening in completion times, leading to a 3% decline in agency branches using the service.
Chief executive Peter Brooks-Johnson said this has been offset as new homes developers and agents increasingly take up digital solutions with market leader Rightmove.
Rightmove shares were down 0.4% to 509.5p on Friday morning, while OnTheMarket was up 2.5% to 98.89p.