Rightmove Has Strong Start to 2012

Simon Baker

May 9, 2012

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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.

Current trading

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 traffic is setting new records and is up over 20% on the same period in 2011
  • Average Revenue per Advertiser (ARPA) has grown strongly as a result of sales of additional advertising products and price increases. This means we are well advanced in achieving a similar increase to last year
  • Over 75% of agents and new homes developers are now taking at least one additional product and over 30% of their spend in April was on additional advertising products. The performance of the newly launched Local Valuation Alert has been particularly encouraging
  • The overall number of advertisers at the end of April was unchanged on December 2011

Activity on Rightmove during the first four months is up over 20% on a year ago and January was the busiest month ever (over one billion page impressions).  Mobile access to Rightmove through the Apps (iPhone, iPad and Android App) and the optimised mobile website has been of particular note in terms of rate of growth.

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

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

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.

Other businesses

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.

Costs

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.

Outlook

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.

Simon Baker

May 9, 2012

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Acerca de Lucas Vargas:

  • Empezó en Grupo ZAP como el VP de Sales y en 2016 cuando la empresa tenía 60 empleados. Fue nombrado COO de VivaReal tomando el mando de Brian Requarth el Co-Fundador. VivaReal lanzó en Colombia y se trasladó a Brasil. En 2017 se hizo CEO del Grupo ZAP.
  • Ha trabajado en Mexico en PWC y en el Banco Santander
  • Tiene un Master de Business Administration de Harvard
  • En noviembre este año después de la fusión de OLX Brasil y Grupo ZAP fue nombrado el CEO del OLX Business Unit. Lidera la empresa junto con Andries Oudshoorn y Marcos Leite
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Simon Baker is the Founder and Executive Chairman of Online Marketplaces and Property Portal Watch. Involved with property portals for 15 years, he’s a well-recognized expert and industry consultant.
As former CEO/MD of the REA Group for 8 years, Simon led the group to its current market-leading position. When he joined REA Group in 2001, it had $4m in revenues, $6m in losses and an $8m market cap.
By 2008, the company presided over $155m in revenues, $35m in EBITDA and enjoyed a peak market cap of $1b. Simon is currently Chairman of the Mitula Group and Real Estate Investar and a serial portal founder and, investor.