Rightmove Half Year Revenue Results Annouced
Rightmove results have been released showing a revenue and profit drop for the six months to 30 June 2020.
Dominated by the pandemic, for the first six months of 2020, it is not surprising that the numbers had dropped, coupled with the fact Rightmove gave its customers a 75% discount.
The results showed that revenue was down 34% to £94.8m and profits had decreased by 43% to £61.7m compared to the same period last year. Despite the average revenue per advertiser dropping by 34% to £714, Rightmove was still showing profits before tax of 65%.
Since the beginning of the year, Rightmove is stating that membership numbers are down 3.3% to 19,158, with a decline of 3.5% of agency branches and 2.1% fall in New Home developments.
Q2 saw a decelerating trend in branch closures with Agency branches and New Homes developments being net positive in June. However, there were 1,001 branch losses in June, showing a reduction of 6% on the previous year.
The company has stated that they confirm their commitment to their long established policy of returning all free cash flow to shareholders through a mix of dividends and share buy backs as soon as prudent. It was also announced that they would pay back the money they received from the furlough scheme.
Peter Brooks-Johnson, CEO, says:
“In recent months Covid-19 has disrupted the lives of everyone across the UK. Our customers have shown incredible resilience and ingenuity to continue to trade through this exceptional period. I am grateful for both their continued support and also their proactive engagement to ensure that home hunters have been well informed and protected. I’m also immensely proud of the Rightmove team for the unerring dedication which has seen Rightmove operate seamlessly throughout this challenging period and offer unprecedented support to the industry through discounts and accelerated innovation.
“Following the reopening of the housing market on 13 May housing market activity is at record levels, with evidence of new home hunters coming into the market with changing needs as they reassess their priorities and further incentivised by the temporary stamp duty holiday. Rightmove has extended its lead as the place home hunters turn to first for their move. It’s quite incredible that 65 of our record days have been since 13 May. I’m pleased that our customers are choosing to invest in our digital solutions to take advantage of this record demand.
“Despite the current strong market we’re mindful that potential economic challenges and further Covid restrictions in the second half of the year make it hard to predict how sustained the increase in activity will be.
“Rightmove’s purpose is to make home moving easier in the UK and the restrictions placed on our daily lives because of Covid have shown the value of the innovations we are delivering to better enable this.
“With the reopening of the property market, we had returned all employees from furlough by the end of 31 July 2020. ‘Doing the right thing’ is central to the Rightmove culture and as the immediate uncertainty of the crisis passes and given our resilience in the year to date we intend to repay the grant from the Coronavirus Job Retention Scheme (CJRS) and we will not be taking the furlough bonus in January next year. We believe that repaying the CJRS grant of £0.7m supports both our brand and our responsibilities to the wider community.”