Rightmove, the UK's number one property portal, yesterday published its Interim Management Statement for the period from 1st January 2012 to 9th May 2012.
While the statement is printed below, there are a number of observations that can be drawn.
Firstly, the majority of revenue growth for rightmove this year will come from increasing ARPA as the number of agencies and developers will be flat. The increase in ARPA seems to be driven by a combination of price increase and increase in product uptake.
Secondly, traffic to the business overall is up 20% and more impressively mobile access is displaying a high rate of growth - a trend being seen around the world.
Finally, being a market leader allows you to run the business at a lower cost base - particularly marketing, where deep brand recognition drives traffic growth without having to spend on CPC.
Here is the announcement from Rightmove.
The [Rightmove] business continues to trade in line with the strong start to 2012 communicated at the time of its Full Year Results in February:
Rightmove ran its "Britain Moves at Rightmove" TV advertising campaign again in January, February and April. Paid site traffic continues to be negligible showing the ongoing strength of Rightmove's brand recognition and further success in optimising organic search performance.
Agency ARPA (Average revenue per advertiser) has increased substantially compared to the same period in 2011 as a result of further adoption of additional advertising products, including the new Local Valuation Alert product, and price increases. Rightmove agency membership is unchanged this year reflecting a stable underlying market.
New homes ARPA has continued to grow as a result of price increases, sales of additional advertising products and email campaigns. The number of developments on Rightmove at the end of April is unchanged from the start of the year.
The data services business, a modest contributor in terms of overall Rightmove revenue, has had a very strong start to the year with a number of long-term contract wins in recent months, including its biggest ever single contract win. Our overseas homes advertising business continues to trade profitably.
Operating costs remain low and are unlikely to exceed the GBP31m communicated at the Full Year Results in February.
Return of capital and financial position
The final dividend for 2011 of 11p will be paid on 8th June 2012 to members on the register on 11th May 2012. So far this year the Company has acquired and subsequently cancelled 1,150,000 shares at a cost of GBP15.9m. At 30 April 2012 Rightmove had GBP24.3m of net cash.
Subject to there being no significant decline in the UK housing market, the Board remains confident of meeting its expectations as communicated at the Full Year Results.
Note: Financial and operating information relates to the period 1st January 2012 to 30th April 2012 unless otherwise stated.