2nd Nov 2010 07:00
Embargoed for release at 07.00 hours, 2nd November 2010 RIGHTMOVE PLC INTERIM MANAGEMENT STATEMENT
Rightmove plc ("Rightmove"), the UK's number one property website, publishes its Interim Management Statement for the period from 1 July 2010 to 31 October 2010.
Current tradingOverview
The last four months have continued to show healthy growth in revenue and earnings and strong cash generation. Usage of the Rightmove website has been at or close to record levels, as has Rightmove's market share.
We have continued to make healthy gains in average revenue per advertiser (ARPA) in the third quarter driven by continued strong adoption of our advertising products. The number of advertisers on the Rightmove website at the end of September stood at 18,100, up 2.5% since the start of the year. Changes to pricing are progressing according to plan.
Home hunters
Activity on the Rightmove.co.uk website is strong with page impressions for the period July to September 2010 up around 16% compared to the same period in 2009, which was itself a strong period for site traffic. August was our second busiest month ever and saw our two busiest days ever. Following our most recent TV marketing campaign in September we recorded our strongest week in terms of market share of page impressions.
Agency
Estate agency and lettings membership rose to 14,850 by the end of September, a 5% increase from the start of the year. All the membership growth is coming from estate agents rather than rental only agents. ARPA during the third quarter was ahead of the average for the first half of the year reflecting both the full impact of price rises to our membership fees implemented between January and the start of May and further growth in adoption of our advertising products.
New homes
The number of new developments coming to market from volume house builders was stable during the period though there was a further small decline from Housing Associations. ARPA during the third quarter showed healthy growth compared to the average for the first half of the year. This reflects both the full impact of price rises to our membership fees and particularly strong demand for our email campaigns service.
Other businesses
Our Overseas property sales business continues to adapt to the challenging overseas market conditions with revenue over the last three months at its highest levels this year. Our Data Services business, a modest contributor in terms of overall Rightmove revenue, continues to trade healthily.
Return of cash
Our interim dividend, up 2p to 5p per share, will be paid on 12 November 2010 to shareholders on the register as at 15 October 2010. Since the end of the close period in late August, the Company has acquired and subsequently cancelled 470,000 shares at a cost of £3.1m. It is the company's intention to continue to return cash to shareholders by way of share buy backs. As at 30 September 2010 Rightmove had £31.3m of net cash.
Outlook
The Board is confident of meeting expectations for the current year. On the assumption that housing market conditions continue to be challenging (i.e. with housing transactions running at around half the levels of a normal market) but do not substantially worsen, the Board expects to achieve significant organic growth in 2011.
Contact: For Ed Williams, Managing Director and Nick McKittrick, Chief Operating Officer and Finance Director please contact Rightmove plc Press Office, 07894 255295
vendorRelated Shares:
Rightmove