Rightmove’s H1 revenue declines by 34% on a year over year basis

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in his free… read more.
on Aug 7, 2020
  • Rightmove’s H1 revenue declines by 34% on a year over year basis.
  • The online real estate portal reports £61.6 million of pre-tax profit in H1.
  • The British firm's board decides to suspend the interim dividend.

Rightmove plc (LON: RMV) said on Friday that its pre-tax profit in the first half (H1) of the current fiscal year came in 43% lower. It attributed the decline to the Coronavirus pandemic that pushed the UK housing market into a temporary shut down in recent months. Rightmove announced to have hired a new CFO on £1.75 million package earlier this week.

Shares of the company were almost flat in premarket trading on Friday but jumped more than 8% on market open. Rightmove is currently exchanging hands at 625 pence per share versus 400 pence per share when it bottomed out in March due to COVID-19. At the time of writing, the company is valued at £5.46 billion and has a price to earnings ratio of 32.05.

Rightmove reports £61.6 million of pre-tax profit in H1

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Rightmove announced its pre-tax profit in the six months that concluded on 30th June at £61.6 million as compared to a much higher £108.1 million in the same period last year. The British property website also highlighted in its report on Friday that its revenue for the period tanked to £94.8 million that represents a 34% decline on a year over year basis. In June, it had warned that COVID-19 will result in another £17 million to £20 million hit to its revenue.

The company attributed the slump in revenue to an unparalleled 75% discount that it announced for its customers for a period of three months from April through June. The move was aimed at minimising the effects of the health crisis.

In terms of operating profit, Rightmove printed £61.7 million in the first half versus £108.2 million in the comparable period of 2019. The largest British online real estate portal accentuated a decline in its average revenue per advertiser from £1,077 per month last year to £712 per month.

Rightmove’s board decides to suspend the interim dividend

The London-based firm said that signs of quick recovery were evident between 1st June and 31st July as the government eased COVID-19 restrictions. During this period, Rightmove said sales properties saw a 50% increase in demand while rental demand also pushed up by 20%.

The property company also expressed confidence that positive trends will sustain in the upcoming months. Its long-term prospects, it added, were bright. Rightmove’s board decided to suspend the interim dividend on Friday in a bid to shore up finances amidst COVID-19.

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