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http://www.investegate.co.uk/Article.aspx?id=20110504070000P89B2
Housing stuck in doldrums says Rightmove By Philip Whiterow Date: Monday 21 Mar 2011 Asking prices for houses in England and Wales rose last month according to online estate agent Rightmove, though most of the activity is centred on the top end of the market Rightmove’s survey showed prices in March were 0.9% higher than a year earlier, compared with 0.3% in February, with the average price for a property on the market now £231,790, against £230,030. Month-on-month, asking prices rose by 0.8% from 3.1% in February. There were some glimmers of activity picking up. Higher levels of enquiries and viewings in January and February appeared to be converting into sales, but the mood overall is still subdued, the firm added. "The falling time on the market and stable spring stock levels would normally point to a healthy housing market. However, this year's celebrations will be severely muted by the knots the market has found itself tied up in," Rightmove director Miles Shipside said. The market is now driven by a need for larger deposits, leading to greater liquidity for more expensive property types which appeal to a wealthier demographic, while first-time buyers and terrace sellers struggle, Rightmove commented. “Overall the figures do little to shift the picture of stagnant house prices shown in other industry surveys, as limited mortgage availability, slow wage growth and job worries deter many house-buyers,” it added.
Brewin Dolphin moved its recommendation for Rightmove (RMV), the online property database provider, from "hold" to "add" with an increased target price of 1,051p, up from 842p. The broker believes the prospect for medium term growth at Rightmove remains compelling, supported by the increasing shift towards online marketing, the group's market dominance, product innovation, and customers reliance on its services. That said, despite the recent share price strength, Brewin continues to see good scope for progression.
Record year for Rightmove Date: Friday 25 Feb 2011 LONDON (ShareCast) - Revenue and profits at property web site Rightmove came in a shade shy of market expectations, though the results still set new records for the group despite a tough year for the UK housing market. Revenue in 2010 rose from £64.5m in 2009 to £81.6m in 2010, a bit lower than the £82.2m the market had been expecting. Profit before tax rose from £36.5m to £52.2m, versus expectations of £53.3m. Diluted earnings per share (EPS) from continuing operations surged to 34.60p (market consensus: 36.16p) from 26.33p. Underlying basic EPS rose 34% to 39.8p from 29.6p the year before. The proposed final dividend of 9p is up from 7p the year before and takes the full year dividend to 14p, a 40% increase from 2009’s 10p. The number of advertisers on Rightmove’s site grew by 2% in 2010 to 18,042 from 17,664 the year before, and the average revenue per customer rose to £379 per month from £308 per month in 2009. Website traffic grew year on year with page impressions up 17% to 7.6bn, generating record visibility and enquiries for the site’s advertisers. Enquiries from mobile communication devices soared, with the company recording 222m mobile page impressions, up 900% on 2009. The company’s positive net cash balance at the end of 2010 had improved to £23.1m from £3.4m at the end of 2009, with cash boosted by the initial net proceeds of £13.3m on the disposal of the Holiday Lettings business. Ed Williams, managing director of Rightmove, waxed lyrical about the company’s importance to the property market on its tenth anniversary, claiming: “Rightmove today is considered not simply a listings portal, but an amphitheatre for the entire property industry where we assist our member advertisers in communicating their brand, properties and expertise to the British home-moving public." Chairman Scott Forbes was slightly less purple in his prose. “In terms of financial results, 2010 set new records for organic growth, revenue and profits,” Forbes said. On a more sober note, Forbes predicted that transaction volumes in the housing market are not likely to see much improvement on 2009 and 2010 levels, but given that its customers had survived the housing market downturn this long, he was hopeful that most would make it through 2011 as well. The current year has started well. “January 2011 has seen us send a record number of enquiries to our advertisers. The growth in mobile traffic continues to be strong and increases at an even faster rate than for the main website,” Forbes said. “Average spend per advertiser started the year very healthily and is expected to rise further over the coming months. Overall advertiser numbers are stable, at similar levels to late 2010,” he added.
A set of decent figures
Ed Williams, Managing Director, said: "The results we are reporting today demonstrate the confidence that property advertisers have in using Rightmove to achieve their advertising goals online over traditional media, helping them cost-effectively reach their target audience in this challenging housing market. Rightmove today is considered not simply a listings portal, but an amphitheatre for the entire property industry where we assist our member advertisers in communicating their brand, properties and expertise to the British home-moving public."
Highlights: * Revenue(1) increased by 26% to £81.6m (2009: £64.5m) * Underlying operating profit(1)(2) increased by 39% to £56.6m (2009: £40.6m) * Underlying operating margin(1)(2) up from 62.9% to 69.4% * Underlying basic earnings per share(1) up 34% to 39.8p from 29.6p * Net cash at 31 December 2010 of £23.1m (2009: £3.4m) * 4.2m shares bought back during 2010 (2009: 1.1m) at an average price of £7.05 (2009: £4.84) * Number of advertisers grew by 2% to 18,042 (2009: 17,664) * Average revenue per advertiser (ARPA) at £379 per month (2009: £308 per month) * Proposed final dividend of 9.0p (2009: 7.0p) making a total dividend of 14.0p for the year (2009: 10.0p) * Net consideration for Rightmove's 66.7% stake in the Holiday Lettings business, sold in June 2010, of £20.9m including £5.1m contingent consideration, representing a seven-fold return on investment since 2007 (1) From continuing operations. Comparative figures have been restated where necessary to reflect the treatment of Holiday Lettings as a discontinued operation. (2) Before share-based payments and NI on share-based incentives.
http://www.investegate.co.uk/Article.aspx?id=20110225070000P5822
I think this may have been a hastie decision on my part after hearing about the housing market picking up. Right move may have already peaked and any gain is going to be very small. Im in, but looking to get out :@/
a strong buy, we are not new to this and we know what we are doing. Google not doing uk till next year. so the 10% drop is very over done. I topped up on the low, I'm staying.
Very good post, I can see rightmove will have problems competing.
I think 'minted1day's' post below says it all. I would to add...even though the interim statement was upbeat it was very telling that the managing director finance director have both recently sold shares with another director sale on tuesday . IMHO If your in profit here take it now. As always DYOR. GLA
GOOGLE'S TALKS WITH ESTATE AGENTS THREATEN ONLINE PROPERTY. Talks between Google and UK estate agents to create an online property portal could pose a serious threat to existing property websites and local newspapers, warn experts. Google launched a property portal in Australia last August, enabling estate agents to list properties for free, showing both pictures taken from its Street View service and details on a map. According to property websites and estate agents, the giant US internet search company could launch something similar in the UK as early as 2010. Douglas McCabe, of Enders Analysis, believes the move could eventually: 'affect everyone and newspapers will suffer another chapter in the story of consumers being more and more aware of alternatives to their classified advertising.' Could be time to sell if your in here
currently 515 @ 13:50
Lots of activity being cancelled on the above, apparently in favour of RM?
.....Friday 27th
Rightmove do NOT have a monoply nor anything like. As MD of a major firm of Agents, I can tell you catagorically that Primelocation, Email for Property, Findaproperty, Propertyfinder, Fis4Homes, Think Property, Lookforaproperty, email4property, Globrix etc would all disagree. Rightmove are simply the portal with more property than anyone else and have a good business model.
guys its just a web site? remember the dotcom boom?, a clever bit of marketing from a up and coming rival with powerful friends will put its mc to half in no time, remember that.. major advertising campaign on big bro , or im a celeb or simular and its a case of right who?? it happens so rapidly. think carefully b4 you get in, as long term has no potential
Some Movement Here, what do we think? http://www.investegate.co.uk/Article.aspx?id=20081104180758PD18D
Rightmove currently have an absolute monopoly in the UK for Internet Property Listings and most Estate Agents subscribe on the basis that all it costs is one decent commission. Multiply this one commission by the total number of Estate Agents who willingly subscribe and that currently equates to approximately 41 million turnover. The main problem is Estate Agents in general do not fully understand IT, computers or the Internet. No other website currently comes close to Rightmove. After all, why do Estate Agents need to subscribe to other websites when Rightmove appears to do the job, albeit at a cost? The issue is - if all you need is Rightmove to sell effectively why do you need so many Estate Agents? Best advice maybe is to consider selling shares now while the going is good and there are still sufficient Estate Agents out there able to afford to subscribe to Rightmove.
RMV has confounded my expectations with solid rises since I sold. Today they have released a very bullish RNS saying their results (to be released on Aug 31) will be in line with expecations - i.e. pretax profit up to £29.9m from £17m last year. With other property stocks down 20% off year highs, it's hard to see why RMV should be immune to market sentiment. After all with over 80% of the UK market the only way to get further revenue will be to squeeze existing revenue out of its existing agent clients, who have already met in Feb to discuss how to fight against RMV's fees as a group.
profit doubled this year. rightmove hit agents last year with a 25% increase in subscriptions, and the agents had no choice but to sit there and take it. I can't see their dominance being challenged. The competitors are weak and in many cases loss making, relying on expensive offline advertising to try and claw back some market share. It comes down to offline deals with agents. Rightmove has made more deals than the other and has far more properties on its site than its competitors. The real question is whether house buyers and sellers will, over time, move to buying houses direct without an agent now that the internet is the primary tool for searching for a house in the UK.
i read in an estate agency trade magazine that a consortium of agents met up to protest over rightmove's monopoly on the uk's online residential property market. The gripe was over rightmove's ability to "turn the revenue taps" a la google - by just increasing the monthly subscription to advertise. This discovery - that the agents were scared of rightmove's power, led me to buy the stock about a month ago. 85% of the market held by one company, with its competitors failing to build sites with good content or even good functionality in the case of some. I'm still going to be watching this one and will buy back in once the shake out has finished.
i'm assuming this morning's 5.5% drop in SP is due to likely acquisition of countrywide, with countrywide's rightmove stake valued at 85p per share. whatever the reason, i'm out :(
I was right to buy made a nice quick profit and sold