Full Year Results for the year ended 31 December 2012 1 March 2013
Disclaimer This presentation may contain forward- looking statements, including ‘forward -looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Further details of potential risks and uncertainties affecting the Group are described in the Group’s filings with the London Stock Exchange including the Prospectus. These forward-looking statements speak only as of the date of this presentation. This presentation and a press release will be posted on the investor section of the Rightmove website. 1
Highlights • Revenue up 23% to £119.4m (2011: £97.0m) • Underlying operating profit up 26% to £87.5m (2011: £69.4m) • Underlying basic EPS up 31% to 65.7p (2011: 50.3p) • £86.8m returned to shareholders through dividends and share buybacks (2011: £65.1m) • Final dividend of 14.0p (2011: 11.0p) taking full year dividend to 23.0p (2011: 18.0p) up 28% • Site traffic up 18% to 11.0bn pages (2011: 9.3bn pages) • Average revenue per advertiser up 19% to £529 per month (2011: £443 per month) Information, unless otherwise stated, is presented on a continuing operations basis before share-based payments £2.4m (2011: £2.3m) and NI on share-based incentives £2.0m (2011: £4.4m) and no related adjustment for tax Source: Rightmove 2
Revenue and costs Revenue Costs 119.4 120 40 110 97.0 100 31.9 90 81.6 30 27.6 80 25.0 £ Millions 23.9 £ Millions 64.5 70 60 20 50 40 10 30 20 10 0 0 2009 2010 2011 2012 2009 2010 2011 2012 Source: Rightmove 3
Profit and margin Underlying operating profit Margin 62.9% 69.4% 71.5% 73.3% 87.5 90 80 69.4 70 60 56.6 £ Millions 50 40.6 40 30 20 10 0 2009 2010 2012 2011 Source: Rightmove 4
Income statement Year ended 31 December 2012 2011 £m £m Revenue 119.4 97.0 Operating costs (31.9) (27.6) Underlying operating profit 87.5 69.4 Underlying operating profit margin 73.3% 71.5% IFRS 2 charge (2.4) (2.3) NI on share-based incentives (2.0) (4.4) Operating profit 83.1 62.7 Net financial income 0.1 - Profit before tax 83.2 62.7 Tax (20.6) (16.7) Profit from continuing operations 62.6 46.0 Profit from HLL (net of tax) - 0.5 Profit for the year 62.6 46.5 Source: Rightmove 5
Balance sheet As at 31 December 2012 2011 £m £m Property, plant and equipment 1.7 1.1 Intangible assets 1.6 1.3 Amounts held in Escrow 1.7 1.7 Deferred tax assets 9.7 10.7 Total non-current assets 14.7 14.8 Trade and other receivables 18.4 15.0 Cash and cash equivalents 7.1 21.8 Total current assets 25.5 36.8 Trade and other payables (23.7) (20.9) Income tax payable (8.9) (6.0) Total current liabilities (32.6) (26.9) Provisions being non-current liabilities (0.1) - Net assets 7.5 24.7 Share capital 1.1 1.1 Retained earnings/Other reserves 6.4 23.6 Total equity 7.5 24.7 Source: Rightmove 6
EPS, share buybacks and dividend • Underlying basic EPS up 31% to 65.7p (2011: 50.3p) • 4.5m shares bought back and cancelled at an average price of 1470p • Cash of £7.1m (2011: £21.8m) • Total cash returned during the year of £86.8m (2011: £65.1m) • Final dividend of 14.0p (2011: 11.0p) taking full year dividend to 23.0p (2011: 18.0p) up 28% 7
Leadership with home hunters Page impressions Market share of the top four UK property websites by pages viewed 13 12 11.0 11 10 9.3 9 7.6 8 7 6.5 6 Billions 5 4 2012 2011 3 Rightmove 82% (84%) 2 Zoopla 11% (7%) 1 Findaproperty 4% (6%) 0 Primelocation 3% (3%) 2012 2009 2010 2011 Sources: Rightmove data; Hitwise UK website page impressions 8
Leadership with advertisers Membership* change during 2012 • Overall membership unchanged 0 5,000 10,000 15,000 • Growth came from UK and overseas 15,244 Agents agents, with declines in new homes developments +166 2,436 Developments • Low rates of new business formation -232 and low rates of exits from industry Overseas 590 • No obvious change in trends for 2013 +60 as compared to 2012 Total membership at end of 2012 18,270 unchanged on 2011 * Number of estate agency, lettings only, overseas offices and new homes developments Source: Rightmove 9
Leadership in advertising spend Average Revenue per Advertiser (ARPA) • ARPA up 19% for 2012 over 2011 7000 £529 / month • Very strong growth in additional spending on 6000 £443 advertising products, up 50% on 2011, with 5000 membership/listing spend up 10% £379 £ per office / development per year 4000 £308 • Display advertising products (including Local Valuation Alert (LVA)) performed strongly 3000 with a run-rate of £1.3m per month by late 2012, up 75% on a year earlier 2000 • Further healthy uptake of and upgrading 1000 within the Flexible Membership Offer (now simplified as a set of membership tiers) 0 2009 2010 2011 2012 Source: Rightmove 10
Increasing additional spending £26m REVENUES £24m £22m £20m £18m £16m 2012 £14m £12m 2011 2012 £10m £8m 2011 £6m 2012 £4m 2012 2011 £2m 2013 £0 PROPERTY E-MAIL DISPLAY LOCAL VAL. MICROSITES PRODUCT (JANUARY RUN-RATE) PRODUCTS CAMPAIGNS PRODUCTS ALERTS 2007 2008 2010 2012 2013 LAUNCH 11
Summary • Average spend per advertiser grew strongly in 2012 • Housing market conditions remain tough and at this stage flat membership seems the most sensible assumption • Record levels of traffic at the start of 2013 • Continue to target £60 to £70 increase per year in average monthly spend per advertiser 12
Strategy • UK property advertising market • Organic revenue growth from increased spend by our advertisers • Return all excess cash generated to shareholders, through dividends and share buy backs 13
Recommend
More recommend
