Rightmove experienced an impressive 40 per cent increase in profit during the first half of 2010. This was primarily due to sheer volume. Volume increased in estate agents advertising pounds, as well as more prospective buyers utilized the website. The only way Rightmove can see a poor second half of the year is if there was a sharp turn downward in the number of homes bought and sold; and that does not seem likely to happen.
The company’s revenues increased over 25 per cent during the first half of the year to 42.3 million pounds. Also, profit numbers shot up from last year to 24.5 million pounds. They will pay a 5p dividend for the first half on November 12.
Rightmove noted earlier in August that home prices in England and Wales had fallen by 1.7 per cent in July. This resulted in traffic numbers to the website being very strong. The traffic itself increased 22 per cent in the first half of the year also.
Scott Forbes, chairman, believes revenue will continue in a positive direction, due to trading in the months of July and August. He is confident that there is not a reason to believe otherwise.
With Rightmove giving more flexibility to their agents in advertising, the average bill to advertisers was 20 per cent higher to 365 pounds per month during the first half. They gave the agents the option to promote their own brand, as well as the houses they are representing. This proved to be a wise choice for H1.
Approximately 600 agents’ offices joined forces with Rightmove during the first half of the year. The total now stands at just short of 15,000 as companies are reopening offices after closing during the housing crisis.