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