full year results - rightmove · membership/listing spend up 10% • display advertising products...
TRANSCRIPT
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 of 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
£ M
illio
ns
2009 2010 2011
80
70
60
50
40
30
20
10
0
90
100
64.5
81.6
97.0
40
30
20
10
0 £
Mill
ion
s
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
0
£ M
illio
ns
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
0
Bill
ion
s
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
0 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
0
£ p
er o
ffic
e /
dev
elo
pm
ent
per
yea
r
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 R
EVEN
UES
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