26 July ly 2 2019 Int Inter erim Res im Results ults for the half year ended 30 June 2019
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Agenda enda 1. 1. HY 2019 Highligh ights ts Peter Brooks-Johnson, CEO 2. 2. Finan ancials cials Robyn Perriss, FD 3. Housin 3. ing market t updat ate Peter Brooks-Johnson, CEO 4. 4. Strat ateg egic ic updat ate Peter Brooks-Johnson, CEO 5. Q & A 5. 3
1. HY 201 019 9 Highligh hlights ts Peter Brooks-Johnson, CEO 4
Hi Highlights lights Revenue: Profit: EPS: Dividend: +10% +10% +10% +10% +12% +12% +12% +12% Interim dividend increased by Revenue up to £143.9m Underlying operating profit 1 Underlying basic EPS 2 (2018: £131.1m) increased to £111.0m grew to 10.2p (2018: 9.1p) 0.3p to 2.8p (2018: 2.5p*) (2018: £101.0m) per ordinary share Advertisers 3 : ARPA 3 : Cash returned: Site traffic 4 : £54.0m £54 0m 20,20 20 209 6.5bn 6. 5bn £1,07 £1 077 As at 30 June 2019 down 1% Free cash flow returned Time in minutes for the Per month, up £90 to shareholders through (31 December 2018: 20,454) 6 months ended 30 June (2018: £987 ) dividends and buybacks unchanged year on year (2018: £76.9m) (2018: 6.5bn) * 2018 comparatives have been restated for ease of comparability to reflect the 10:1 share split effective 31 August 2018 1. Before share-based payments and NI on share-based incentives 5 2. Before share-based payments, NI on share-based incentives and no related adjustment for tax 3. For Agency and New Homes customers 4. Source: Google Analytics
Stra St rate tegic gic Hi Highl hlights ights Penetration of the Enhanced and Optimiser packages has reached 35% of estate agency customers, up from 27% in December 2018 Access to our unique in-market audience of home hunters saw new homes developers spend a record £4.6m on our digital marketing solutions up from £3.8m in H1 2018 Auto Featured Property launched in May with nearly 500 branches now signed up. June saw the early roll out of our next generation digital marketing product, Rightmove Active Extension (RAE) Further progress helping agents to be more efficient with the launch of a new suite of tools to help agents identify their most valuable markets and a new version of our Best Price Guide Continued focus on innovating in the rental market; including Version 2 of the Rightmove Tenant Passport including a credit check and agreement to acquire Van Mildert, a tenant referencing company 6
2. . Fina nanci ncials als Robyn Perriss, FD 7
Reven evenue ue Revenue enue Revenue enue bridge ge 267.8 .8 270 160 £ millions £ millions 243.3 .3 1.1 0.7 143.9 .9 11.0 245 140 131.1 .1 220.0 .0 220 120 195 170 100 143.9 .9 145 131.1 .1 80 120 60 95 70 40 45 20 20 0 -5 Revenue HY ARPA growth Customer Increase in Revenue HY 2016 2017 2018 H1 2018 H1 2019 2018 growth Other revenue 2019 streams 8 Source: Rightmove
Me Membership bership an and ARPA PA Agency ncy and New Homes Memb mbership ership numb mbers ers down wn 1% 22 20,45 454 20,45 450 • Agency branches down 3% since the start of nds sands 20,209 20,209 20,427 20,427 20,121 20,121 20 the year to 16,768 ousa 18 Thousands • New Homes developments up 10% to 3,441 Thou 16 • Customers advertising 1.1m UK residential 14 properties on Rightmove 12 10 2016 2017 2018 H1 2018 H1 2019 £ per office/development per year ARPA Record ord absolu olute te ARPA PA growth wth £90 £83 12,000 £80 £1,07 077 +9% • ARPA up £90 year on year to £1,077 (1) per £1,00 005 £987 £987 +9% 10,000 £922 £922 +10% £842 £842 month 8,000 6,000 • ARPA growth driven by package upgrades 4,000 and core membership price increases 2,000 0 2016 2017 2018 H1 2018 H1 2019 9 1: For Agency and New Homes customers Source: Rightmove
Costs, s, operati erating ng pro rofit it an and mar argin in Costs ts 1 Underlying erlying opera ratin ting profit it 1 Margin: 75.5% 75.5% 75.8% 75.8% 75.9% 75.9% 77.0% 77.1% 77.1% 250 £ millions 70 £ millions 64.5 58.9 203.3 .3 60 200 53.8 184.4 .4 50 166.2 .2 150 40 32.9 111.0 .0 30.1 101.0 .0 30 100 20 50 10 0 0 2016 2017 2018 H1 2018 H1 2019 2016 2017 2018 H1 2018 H1 2019 10 1. Before share-based payments and NI on share-based incentives Source: Rightmove
In Income me stat atement ement 6 m months ended 6 m months ended 30 J June 2019 30 June 2018 2018 £m £m £m £m Revenue 143.9 131.1 Operating costs (32.9) (30.1) Underlyi ying g operating g profit 111.0 101.0 Underlying operating profit margin 77.1% 77.0% Share-based payments (2.2) (2.1) NI on share-based incentives (0.6) (0.7) Operating g profit 108.2 98.2 Net financial expense (0.1) (0.1) Profit t before e tax 108.1 98.1 Tax (20.6) (18.8) Profit t for the period 87.5 79.3 11 Source: Rightmove
Bal alance ance sheet eet As at As As at 30 June e 201 019 30 June 201 30 018 £m £m £m £m Property, plant and equipment 14.1 16.1 Intangible assets 2.9 3.1 Deferred tax assets 3.1 5.5 Tota tal l non on-curr current asset ets 20.1 .1 24.7 .7 Trade and other receivables 25.6 21.1 Contract assets 0.4 0.3 Cash and money market deposits 54.1 28.1 Tota tal l current t asset ets 80.1 .1 49.5 .5 Trade and other payables (17.1) (17.8) Contract liabilities (2.0) (2.0) Income tax payable (20.5) (18.1) Lease liabilities (12.6) (13.6) Provisions (0.7) (1.0) Tota tal l liabilitie bilities (52. 2.9) 9) (52. 2.5) 5) Net t asset ets 47.3 .3 21.7 .7 Share capital 0.9 0.9 Other reserves 0.5 0.5 Retained earnings 45.9 20.3 Tota tal l equity ity 47.3 .3 21.7 .7 12 Source: Rightmove
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