1 March 2019 Full Year Results for the year ended 31 December 2018
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Highlights Revenue: Profit: EPS: Dividend: +10% +10% +12% +12% Revenue up to £267.8m Underlying operating profit 1 Underlying basic EPS 2 Final dividend increased by 0.4p to 4.0p (2017: 3.6p*) (2017: £243.3m) increased to £203.3m grew to 18.3p (2017: £184.4m) (2017:16.3p*) making a total dividend of 6.5p (2017: 5.8p*) per ordinary share Advertisers 3 : ARPA 4 : Cash returned: Site traffic 4 : £168.5m 20,454 12.3bn £1,005 Free cash flow returned Stable membership as at Time in minutes up 5% year Per month, up £83 to shareholders through 31 December 2018 on year (2017: 11.7bn) (2017: £922 ) dividends and buybacks (2017: 20,427) (2017: £140.4m) * 2017 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 3 2. Before share-based payments, NI on share-based incentives and no related adjustment for tax customers 3. For Agency and New Homes customers 4. Source: Google Analytics
Revenue Revenue bridge Revenue 267.8 275 300 243.3 267.8 2.0 £ millions £ millions 2.1 250 20.4 243.3 220.0 250 225 192.1 200 200 175 150 150 125 100 100 75 50 50 25 0 0 2017 ARPA Customer Other 2018 2015 2016 2017 2018 growth growth growth 4
Cost, profits and margins 1 1 Costs Underlying operating profit Margin: 75.1% 75.5% 75.8% 75.9% 70 250 £ millions 64.5 £ millions 58.9 60 203.3 53.8 200 184.4 47.8 50 166.2 144.3 150 40 30 100 20 50 10 0 0 2015 2016 2017 2018 2015 2016 2017 2018 5 Source: Rightmove 1. Before share-based payments and NI on share-based incentives
Income statement Year ended Year ended 31 December 2018 31 December 2017 £m £m Revenue 267.8 243.3 Operating costs (64.5) (58.9) Underlying operating profit 203.3 184.4 Underlying operating profit margin 75.9% 75.8% Share-based payments (4.3) (4.9) NI on share-based incentives (0.4) (1.2) Operating profit 198.6 178.3 Net financial expense (0.3) (0.1) Profit before tax 198.3 178.2 Income tax expense (37.8) (34.1) Profit for the year 160.5 144.1 6 Source: Rightmove
Summary balance sheet As at As at 31 December 2018 31 December 2017 £m £m Property, plant and equipment 15.2 15.2 2.7 Intangible assets 2.9 3.3 Deferred tax assets 2.8 5.7 Total non-current assets 20.9 11.7 Trade and other receivables 22.5 22.5 35.1 Contract assets 0.4 - Cash and money market deposits 19.9 25.0 Total current assets 42.8 60.1 Trade and other payables (18.1) (18.1) (38.9) Contract liabilities (2.1) - Lease liabilities (13.0) (13.0) - Income tax payable (16.8) (14.7) Provisions (1.1) (1.0) Total liabilities (51.1) (54.6) Net assets 12.6 17.2 7 Source: Rightmove
Cash bridge and dividend Full year 2018 • £168.5m (2017: £140.4m) 250 returned to shareholders in 206.8 the year (6.3) • 25.0m (2017: 22.2m 1 ) £ millions 200 shares bought back and (32.8) (1.7) cancelled • 10:1 share split effected on 150 31 August 2018 • Closing cash and money 100 market deposits of £19.9m (2017: £25.0m) (114.3) • Final dividend increased by 50 0.4p to 4.0p bringing the full 25.0 19.9 year dividend to 6.5p (55.0) (0.3) (1.5) (2017: 5.8p 1 ) up 12% 0 Cash Dec EBITDA Working Tax Capex Share buy Dividends Lease Other Cash Dec 2017 before capital payments backs incl payments 2018 IFRS 2 costs Source: Rightmove 8 1. 2017 comparatives have been restated for ease of comparability to reflect the 10:1 share split effective 31 August 2018
Making home moving easier in the UK Our aim is to create a simpler and more efficient property marketplace The three pillars of our strategy : • The place consumers ‘turn to first’ and engage with most • Offer unrivalled exposure, leads and products for our customers • Innovate to create a better marketplace 9
The UK housing market is stable Housing Transactions 2006-2018 (UK) 1,800 1,600 1,670 Transactions (thousands) 1,613 1,400 1,200 1,230 1,235 1,219 1,220 1,192 1,000 1,073 933 800 900 886 885 858 600 400 200 0 Year on Year Transactions • The number of housing transactions in 102% 2018 was only 2% lower than 2017 101% • Second half of 2018 showed more 100% positive momentum 99% • Commission rates are unchanged and 98% the overall Agency revenue pool is stable 97% • Two-thirds of our Agency customers also 96% generate recurring revenue from lettings 95% 2018 Q1 2018 Q2 2018 Q3 2018 Q4 10 Source: HMRC
Uncertainty is causing hesitation • Underlying demand is stable. The time spent on site in January 2019 was the same as 2018 • January leads are 10% down showing an increasing hesitation to commit • However, history shows the market recovers quickly once certainty returns • Lettings market is unaffected Leads June – July 2016 1.04 EU Referendum Index to Week of 6 June 2016 1.02 1.00 0.98 0.96 0.94 0.92 0.90 06 June 2016 13 June 2016 20 June 2016 27 June 2016 04 July 2016 11 July 2016 11 Source: Rightmove
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