Rightmove's profits gain on popularity of website

UK property website Rightmove posted a 23 per cent rise in annual revenue as the company profited from a trend towards online advertising and topped the list of most popular sites.

UK property website Rightmove posted a 23 per cent rise in annual revenue as the company profited from a trend towards online advertising and topped the list of most popular sites.

Revenues grew to £119.4m in 2012, compared to £97m in the previous year. Average revenue per advertiser was up 19% to £529 per month.

Underlying operating profit increased 26% year-on-year to £87.5m while underlying operating margin jumped to 73.% from 71.5%.

Rightmove reported a 31% jump in underlying basic earnings per share to 65.7p as site traffic increased 18% to 11bn pages.

The company issued a final dividend of 14p per share, bringing the total dividend for the year to 23p, a 28% increase from 18p in 2011.

Rightmove was in January ranked as the sixth most popular website in the UK among global brands including Google and Facebook.

"More than a decade of investment has established Rightmove as one of the UK's most popular online brands," said incoming Chief Executive Officer Nick McKittrick.

"We continue to invest in order to maintain our market-leading position and enable Rightmove members to promote their properties and brand in front of the most home movers. We've seen an encouraging start to the year with record traffic and enquiries and with a major new TV campaign launching next month, we're looking forward to that continuing throughout 2013."

Chairman Scott Forbes said a rapid growth in mobile internet has meant home movers have easier access to information on Rightmove, which led to more hits.

In turn, more property companies are opting to advertise online to improve their consumer reach, he said.

"With healthy growth in average spend per advertiser at the start of the year and assuming there is no significant deterioration in the UK housing market, the board remains confident of continued growth in the business in 2013," Forbes concluded.

Shares rose 1.57% to 1,750.00p at 11:25 Friday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021