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Rightmove FY operating profit up 10%, customer numbers hit record high
Rightmove reported a 10% jump in full-year operating profit on Friday as revenue grew and customer numbers rose to a record high.
In the year to the end of December 2017, operating profit increased to £178.3m from £161.6m. Underlying operating profit was up 11% to £184.4m and the underlying operating margin edged up to 75.8% from 75.5%.
Revenue came in at £243.3m, up 11% on the year and driven by Rightmove's agency and new homes businesses, which saw customer numbers rise 2% to a record 20,427.
Basic earnings per share were up 14% to 156.8p and the company lifted its final dividend to 36p from 32p.
During the year, 1 million UK residential properties advertised on the company's website, which it said was a "significant stock advantage" compared to any other UK portal. Meanwhile, site visits were up 4%, averaging more than 125 million per month and time on site was unchanged at nearly 1 billion minutes per month. Average revenue per user was up 10% to £922 a month.
Rightmove said the outlook for the online UK property market remains positive despite Brexit-related uncertainties, as consumers become increasingly digital and spend continues to transition from traditional advertising channels.
Chief executive Peter Brooks-Johnson said: "The UK public has once again moved with Rightmove, spending 11.7 billion minutes on Rightmove platforms in 2017. Our focus and innovation continue to make us the place that consumers turn to first and that property professionals turn to most often.
"Our customer numbers increased to a record high of nearly 20,500, testament to our aim to provide customers with the most effective marketing exposure and the highest quality leads, as well as helping to drive efficiencies within their businesses though tools and support.
"As the industry becomes more digital our software has become even more valuable to our customers with 90% of our agency members making use of it each month. Our market leading position, our culture of restlessness, and our ambition to make our marketplace even more efficient means there are many reasons to be excited by the opportunities ahead for Rightmove, and the Board remains confident of making further progress in 2018."
Steve Clayton, manager of the HL Select UK Growth Shares fund, said: "These are good results, with Rightmove once again delivering double-digit growth in revenues, earnings and dividends.
"Estate Agency as an industry is changing fast, with online agents taking market share. But even online agents need to advertise properties and Rightmove remains superbly placed to continue taking a greater share of value within the property world because it's unique position as the place where home buyers and sellers first come together is hugely valuable. As an online business, Rightmove is capital-light and hugely cash generative. Profit margins of 75% speak volumes about the strength of its offering. Rightmove remains a core holding for the HL Select UK Growth Shares fund."
At 0900 GMT, the shares were up 1.4% to 4,371p.