Rightmove—the UK’s largest property portal—reported revenue increased by 7% to £192.1 million in the first half of 2024, up from £179.5 million in the same period last year.
The earnings uplift was helped by the UK housing market making a tentative recovery.
Operating profit rose by 2% to £131.6 million, whilst underlying operating profit saw a 1% increase to £135.1 million. Basic earnings per share grew by 2% to 12.4 pence, with underlying basic earnings per share also up 2% to 12.8 pence.
The results were Ok and there was a marginal 2% uptick in Rightmove shares on Friday.
“These are solid but uninspiring results from Rightmove,” said Wealthclub’s Charlie Huggins.
“Despite the significant challenges facing the housing market, it has again grown revenue and profit, underlining the resilience of its business model.
“However, underlying operating profit only grew by 1%. This reflected some one-off costs, but it also reflects the need for Rightmove to step-up investment in innovation.
“CoStar’s acquisition of OnTheMarket means Rightmove now faces a highly credible and deep-pocketed rival. Innovation is becoming increasingly important and that comes at a cost.
“Rightmove still retains a very dominant position, and it will be difficult for CoStar to make a significant dent. Even without much growth, Rightmove is still a cash cow. But with the competitive environment hotting up, Rightmove cannot afford to rest on its laurels.”
The company has declared an interim dividend of 3.7 pence per ordinary share, representing a 3% increase from the previous year.
In terms of operational highlights, Rightmove maintained its market leadership position with over 80% market share, although this may represent a step down from the peak of its dominance.
The platform saw resilient traffic, with users spending a total of 8.3 billion minutes on the site during the period, up from 8.2 billion minutes. Membership numbers remained stable, increasing by 1% since the start of the year to 19,061.
Average Revenue Per Advertiser (ARPA) grew by 6% to £1,497 per month, driven by increased product and package purchases and partner contract renewals. The company also reported positive progress in its Strategic Growth Areas, with revenue growth of 30% in these segments.