The old adage of 'sticking to your knitting' definitely applies to the Rightmove business. Once again they have delivered outstanding results and have showed the world that continued profitable growth can be achieved by focusing on one thing and doing it exceptionally well.
For the 12 months ended 31 December 2011, Rightmove grew revenues by 19% from GBP 81.6m (US$129.5m) to GBP 97.0m (US$153.9m). In doing so, the business also delivered a profit before tax of GBP 69.3m (US$109.7m) – a whooping 71.4% of revenues.
Driving this strong revenue and EBT growth has been a continued increase in traffic to the site. When comparing 2010 with 2011, page views increased by 22% from 7.6bn to a record 9.3bn and Rightmove’s share of pages viewed on the top four property portals increased to 84%.
A key element of the strong revenue growth was the continued uptake of premium advertising products. Over 66% of Rightmove advertisers now use premium products and over the course of the year, the amount spent on these products increased by 43%. This clearly shows that once you reach critical mass of consumers and advertisers, you are able to extract new revenue streams.
Ed Williams, Managing Director of Rightmove comments: “The strength of these results demonstrates that in today’s property marketplace Britain Moves At Rightmove. We put Rightmove advertisers in front of the UK’s largest online audience of home-movers and are continuing to invest in new innovations which connect the British home-moving public with the properties, brands and expertise of our advertisers.”
What is also interesting is that continued movement from the traditional desktop based viewing to mobile based viewing of properties. A new iPhone app was released in September which assisted in Rightmove’s mobile traffic seeing dramatic growth. The number of property searches on mobile platforms increased by 168%, up from 85m in 2010 to 228m in 2011.
What really sums up the Rightmove business is the simple strategy outlined at the end of their investor presentation: