Rightmove revenue jumped as it recorded 1.5 billion site visits and more customers than ever
Companies: Rightmove plc
The UK's largest property website, Rightmove, has posted bumper full-year results for 2016, reporting revenue and user numbers at record levels, giving a healthy boost to earnings and its dividend.
Revenues jumped 15% year on year after the company saw a 10% increase in web traffic hitting 1.5bn sessions (visits) during the year (120m a month). There were also record customer numbers with agency and new homes, and in total 1m properties were advertised - which Rightmove points out is more than a third higher than any other portal.
Underlying operating profit jumped 15% to £166.2m, leading to underlying earnings of 142.8p, 18% higher YoY. The firm says it will pay a final dividend of 32p, which is a 19% increase on last years.
The update also included news that CEO Nick McKittrick has given the Board notice that he is retiring as a director and Chief Executive Officer following the AGM on 9 May.
Despite the positive financial results, shares in Rightmove fell 5% as the news of Mr McKittrick's departure left shareholders with some uncertainty.
CEO Nick McKittrick said Rightmove continues to be the place that home movers turn to first, citing the massive 1.5bn visits to the site in 2016, a 10% increase on the previous year.
"Home movers spent nearly a billion minutes every month searching and researching homes on Rightmove, the only place you can see almost the entire UK property market."
He added that through continued innovation and audience growth, Rightmove was delivering greater exposure for customers' brands and properties:
"We are adding further value through our data, advertising products and productivity tools and by building closer relationships with customers to support their ambitions. Our customer numbers grew by 2% to reach an all-time high of over 20,100 and with customers spending more on our products, our revenue increased by 15%."
