27 July 2018 Interim Results

Transcription

1 27 July 2018 Interim Results for the half year ended 30 June 2018

2 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 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. 2

3 Highlights Revenue: Profit: EPS: Dividend: +10% +11% +13% +14% Revenue up to 131.1m (2017: 119.5m) Underlying operating profit 1 increased to 101.0m (2017: 91.0m) Underlying basic EPS 2 grew to 90.6p (2017: 80.3p) Interim dividend increased by 3.0p to 25.0p (2017: 22.0p) per ordinary share Cash returned: Advertisers 3 : Site traffic: ARPA 3 : 76.9m 20, bn 987 Free cash flow returned to shareholders through dividends and buybacks (2017: 72.0m) As at 30 June 2018, stable (31 December 2017: 20,427) Time in minutes for 6 months to 30 June 2018 (2017: 6.2bn) Per month, up 76 (2017: 911) 3 1. Before share-based payments and NI on share-based incentives 2. Before share-based payments, NI on share-based incentives and no related adjustment for tax 3. For Agency and New Homes customers

4 millions millions Revenue Revenue Revenue bridge H H Revenue HY 2017 ARPA growth Customer growth Growth in other revenue Revenue HY

5 millions millions Costs, profit and margin Costs 1 Underlying operating profit 1 Margin: 75.1% 75.5% 75.8% 76.2% 77.0% H H H H Before share-based payments and NI on share-based incentives Source: Rightmove

6 Income statement 6 months ended 30 June 2018 m 6 months ended 30 June 2017 m Revenue Operating costs (30.1) (28.5) Underlying operating profit Underlying operating profit margin % % Share-based payments (2.1) (2.7) NI on share-based incentives (0.7) (0.7) Operating profit Net financial expense (0.1) (0.1) Profit before tax Tax (18.8) (16.8) Profit for the period Source: Rightmove

7 Balance sheet As at 30 June 2018 m As at 30 June 2017 m Property, plant and equipment Intangible assets Deferred tax assets Total non-current assets Trade and other receivables Contract assets Cash and money market deposits Total current assets Trade and other payables (17.8) (38.7) Contract liabilities (2.0) - Income tax payable (18.1) (16.8) Lease liabilities (13.6) - Provisions (1.0) (0.5) Total liabilities (52.5) (56.0) Net assets Share capital Other reserves Retained earnings Total equity Source: Rightmove

8 Cash bridge and dividend Half year (5.5) 100 (14.7) (1.0) m (2017: 72.0m) returned to shareholders in the period 1.0m (2017: 1.0m) shares bought back and cancelled Closing cash and money market deposits of 28.1m (31 Dec 2017: 25.0m) 60 (44.6) Interim dividend increased by 3p to 25p (2017: 22p) (32.6) (0.7) for 1 share split announced effective 31 August Cash Dec 2017 EBITDA before IFRS 2 Working capital Tax payments Capex Share buy backs incl costs Dividends Lease payments Cash June Source: Rightmove

9 Housing market Cumulative Transactions in England, Scotland and Wales % 1,500, % 1.00% -1.00% -3.00% -5.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2018 vs ,000, , ,000-1,000,000-1,500,000 Sales Agreed in England, Scotland and Wales vs % 0.0% -5.0% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun % 9 Source: 1. HMRC England, Scotland and Wales 2. Rightmove

10 The housing market is regional London Year on Year Change 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% Demand Available Stock Asking price 10 Source: Rightmove

11 Thousands More customers, more choice Agency and New Homes 21 Period end membership of 20,450 broadly unchanged since the end of ,752 20,121 20,427 20,358 20,450 Agency membership broadly unchanged at 17,585 and retention rates in line with historical highs New Homes Developments up 64 (+2%) 19.5 Customers advertising 1.2 million UK residential properties on Rightmove H H1 We continue to be the only place to see virtually the whole UK property market Agency Customer Size 100+ Branches Branches 3-20 Branches 2 Branches 100+ Branches 100+ Branches 100+ Branches Branches Branches Branches 3-20 Branches 3-20 Branches 3-20 Branches 2 Branches 2 Branches 2 Branches Single Branch Single Branch Single Branch Single Branch Janurary 2013 June 2017 December 2017 June

12 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Billions of Minutes Billions The place consumers turn to first and engage with most Time Visits H H H H Market share of top 4 property portals % 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Rightmove Zoopla.co.uk Primelocation OTM 12 Sources: 1. Google Analytics & Rightmove 2. comscore

13 Keyword Sort Innovation in the detail Keyword Sort live May 2018, used by nearly 200,000 people in June Home hunters look at 26% more properties when the search includes a keyword 13

14 Data drives advertising effectiveness Active Campaigns Active Display phase 1 Active Display phase 2 The Active product suite uses Rightmove data to target a relevant audience across multiple touch points Rightmove Active Campaigns, launched in 2017 augment an campaign by repeating the advertiser s message through social media and SMS First phase of Rightmove Active Display launched at the start of 2018 focusses new home developer s advertising to home hunters on Rightmove based on their search behaviour Second phase is now in trial which microtargets home hunters on other websites based on their search behaviour 14

15 Restless innovation with data drives efficiency Early trials of a new Opportunity Manager tool have begun. Opportunity Manager helps agents prioritise leads to make the most of the enquiries they already receive The Best Price Guide helps an agent justify their valuation to a potential vendor: o In the first half of 2018 agents generated an average of nearly a million Best Price Guides per month o A new, faster, version including significantly enhanced market data due for launch in Q o The new version will save agents up to a further 15 minutes per valuation Tenant passport is now in the next phase of trialling. The passport aims to make the process of renting a property faster and more efficient by enabling potential tenants to collate in advance all the information needed for the process of applying for a tenancy 15

16 per office/development per year Driving efficiency drives growth ARPA 14,000 12,000 10,000 8,000 6,000 4,000 2, H H Premium Packages per month H H ARPA 1 up 76 (+8%) to 987 per month per office/development (2017: 911) Full year ARPA growth expected to be around 80 with phasing driven by timing of pricing activities ARPA driven by pricing and product growth More product penetration driven by uptake of our Enhanced package Rightmove Discover progressing to plan, average monthly revenue 75% higher in H than H Optimiser Enhanced Agency and New Homes customers.

17 Percentage of Independent Estate Agency Offices Driving efficiency drives growth January 2010 January 2012 January 2014 January 2018 June /m+ 51% 45% 9% 4% 1500/m+ 16% 14% 1% 1% Total spend per month 17 Source: Rightmove

18 Summary and outlook Stable customer numbers at 20,450 Traffic continuing to grow, with 6.5bn minutes spent on the Rightmove platforms in H ARPA growth driven by pricing and customers spending more on packages full year expected to be around 80 higher than 2017 Continued development of the consumer proposition Continued investment in software tools, data and support to help customers be more efficient Confident in delivering the board s full year expectations 18

19 27July 2018 Interim Results for the half year ended 30 June 2018 APPENDIX

20 Key performance indicators FY 2015 FY 2016 FY 2017 H H Period end membership - Agency offices 17,336 17,462 17,626 17,589 17,585 - New Homes developments 2,416 2,659 2,801 2,769 2,865 Total 19,752 20,121 20,427 20,358 20,450 Growth +2% +2% +2% +1% Overseas advertisers 2,581 2,476 2,297 2,548 2,412 ARPA - Agency New Homes developments 1,020 1,126 1,201 1,210 1,286 Total Growth +10% +12% +10% +10% 1 +8% 1 - Overseas advertisers Retention rate - Agency (% of agents at start still listing at end of period) 89% 89% 89% 94% 94% - New Homes developments (monthly churn rate) 5.2% 6.3% 5.4% 5.8% 4.7% - Overseas advertisers (monthly churn rate) 6.5% 7.4% 7.6% 7.2% 6.5% Growth in H1 compared to H1 in the previous year Source: Rightmove

21 Revenue sources H percentage of revenue H percentage of revenue H H Agency 76% 76% New Homes 16% 16% Other 8% 8% 21 Source: Rightmove

22 Capital Structure Share capital HY 2018 m HY 2017 m In issue at 1 January Purchase and cancellation of own shares (1.0) (1.0) Total issued share capital Shares held in treasury (1.7) (2.2) Voting rights share capital Own shares held by the EBT/SIP (0.3) (0.4) Issued ordinary shares less shares held by the SIP/EBT Weighted average number of shares Number of shares entitled to a dividend b/fwd Effect of share buybacks (0.6) (0.5) Effect of share-based incentives exercised Number of shares used in basic EPS calculation Dilutive impact of share-based incentives outstanding Number of shares used in diluted EPS calculation Source: Rightmove