UPDATE: Rightmove half-year results show £100m return to shareholders

Rghtmove has published its half-year results to 30th June 2024.

It’s headline reads: A strong financial performance during a period of investment, driven by continued demand from agents and new homes developers for our products and services

The financial highlights show:

· Revenue up £12.6m/7% to £192.1m, as both agents and new homes developers renewed contracts, upgraded their packages and invested in additional products

· Operating profit of £131.6m, up 2% (2023: £129.5m)

· Underlying operating profit(1) of £135.1m, up 1% (2023: £133.2m)

· Basic earnings per share up 2% to 12.4p (2023: 12.1p); underlying basic earnings per share(2) up 2% to 12.8p (2023: 12.5p)

· Operating profit and underlying operating profit include one-off acquisition costs of £0.6m, relating to HomeViews and the strategic long-term investment in Coadjute, as well as a one-off charge of £3.0m in relation to the investment in Coadjute: adjusting to remove the impact of these costs would mean that operating profit would be £135.2m, up 4%; underlying operating profit would be £138.7m, up 4%; and underlying EPS would be 13.2p, up 6%

· Interim dividend up 3% to 3.7p per ordinary share (2023: 3.6p)

· £100.2m of returns to shareholders through share buybacks and dividends in the first half of 2024 (2023: £97.6m); 10.1 million shares (1.2% of outstanding share capital) cancelled to 30 June (2023: 10.0 million)

· Cash and cash equivalents, including money market deposits, of £28.1m (31 December 2023: £38.8m)

Johan Svanstrom, Chief Executive Officer, said:

“We’re pleased to deliver a strong set of H1 results, and to be progressing in executing our plan to build an even more valuable digital platform for the UK property industry.

“Our performance came against the backdrop of the sustained challenging mortgage rate environment. The period saw a pick-up in existing-homes listings and transactions, a continued yet softening imbalance of demand and supply for rentals, and a tentative outlook for new homes development volumes. With the election now concluded, the property market looks forward to potential interest rate reductions which will further stimulate activity.

“On the back of our leading position in the market, we have exciting momentum expanding our products and innovation for consumers and partners and remain confident in Rightmove’s long-term prospects.”