Rightmove Plc Trading Statement

 
TIDMRMV 
 
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) (https://edge.media-server.com/mmc/p/82cxiwws/) 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 
 
Powerscourtrightmove@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 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
END
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