Full Year Results for the year ended 31 December 2012 1 March 2013 - - PowerPoint PPT Presentation

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

• f 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)

Source: Rightmove 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

2

Revenue and costs

3

Revenue Costs

Source: Rightmove

£ Millions

2009 2010 2011

80 70 60 50 40 30 20 10 90 100 64.5 81.6 97.0 40 30 20 10 £ Millions

2012 2009 2010 2011

31.9 23.9 25.0 27.6

2012

119.4 110 120

Profit and margin

4

Underlying operating profit

Source: Rightmove

Margin 62.9% 69.4% 71.5% 73.3% 70 60 50 40 30 20 10 £ Millions

2009 2010 2011

40.6 56.6 69.4

2012

87.5 80 90

Income statement

5

Source: Rightmove

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 Year ended 31 December

Balance sheet

6

Source: Rightmove

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 As at 31 December

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

8 7 6 5 4 3 2 1 Billions

2009 2010

9

2011

10 6.5 7.6 9.3

Market share of the top four UK property websites by pages viewed

2012 2011 Rightmove 82% (84%) Zoopla 11% (7%) Findaproperty 4% (6%) Primelocation 3% (3%) 8

Sources: Rightmove data; Hitwise UK website page impressions

2012

11.0 13 12 11

Leadership with advertisers

• Overall membership unchanged
• Growth came from UK and overseas

agents, with declines in new homes developments

• Low rates of new business formation

and low rates of exits from industry

• No obvious change in trends for 2013

as compared to 2012

9

Source: Rightmove

Total membership at end of 2012 18,270 unchanged on 2011

Agents Overseas 5,000 10,000 15,000 +166

• 232

+60 15,244 2,436 590 Developments

Membership* change during 2012

* Number of estate agency, lettings only, overseas offices and new homes developments

Leadership in advertising spend

• ARPA up 19% for 2012 over 2011
• Very strong growth in additional spending on

advertising products, up 50% on 2011, with membership/listing spend up 10%

• Display advertising products (including Local

Valuation Alert (LVA)) performed strongly with a run-rate of £1.3m per month by late 2012, up 75% on a year earlier

• Further healthy uptake of and upgrading

within the Flexible Membership Offer (now simplified as a set of membership tiers)

10

Source: Rightmove

4000 3000 2000 1000 £ per office / development per year 2009 £308 5000 2010 £379 6000 2011 £443 2012 £529 / month 7000

Average Revenue per Advertiser (ARPA)

£26m £24m £22m £20m £18m £16m £14m £12m £10m £8m £6m £4m £2m £0

Increasing additional spending

REVENUES PRODUCT LAUNCH

PROPERTY PRODUCTS

2007

2011 2012

E-MAIL CAMPAIGNS

2008

2011 2012

DISPLAY PRODUCTS

2010

2011 2012

LOCAL VAL. ALERTS

2012

2012

MICROSITES

(JANUARY RUN-RATE)

2013

2013

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