2024-07-26 11:30:19 ET
Rightmove plc (RTMVF)
Q2 2024 Earnings Conference Call
July 26, 2024 04:30 AM ET
Company Participants
Johan Svanstrom - Chief Executive Officer
Alison Dolan - Chief Financial Officer
Ben Winstanley - Head of Investor Relations
Conference Call Participants
Jo Barnett-Lamb - UBS
Andrew Ross - Barclays
Rahul Chopra - HSBC
Jessica Pok - Peel Hunt
Gareth Davies - Deutsche Numis
Will Packer - BNP Paribas Exane
Giles Thorne - Jefferies
Pete-Veikko Kujala - Morgan Stanley
Sean Kealy - Panmure Liberum
Presentation
Johan Svanstrom
All right. Good morning, and welcome to Rightmove's results for the first six months of 2024. I'm joined today by Alison Dolan, our CFO; and also Ben Winstanley, our Head of IR.
So I wanted to share a couple of key messages upfront with you. Our platform and network effects remain unrivaled. We remain the place that homeovers come to in order to see virtually the entire UK property market with now ever-increasing utility, coverage and segmentation.
Overall, H1 results have been in line with our expectations strategically, operationally and financially. And our financial guidance today is unchanged from the AGM trading statement in May. And while we are in this room operational delivery and indeed innovation for our consumers and partners continue at pace back at our offices and out in the field.
The underlying markets of property starting to look more positive and supportive but as usual, the market is operating at different speed within different subsegments and we'll get back to this.
So in that context, Rightmove's platform continues to demonstrate its strength. We saw revenue growth of 7% with the letting segment going up 12% year-on-year. ARPA of almost £1,500 is tracking in line with our guidance for the full year at £75 to £85 growth.
Membership is 1% higher compared to December 2023, driven by strength in the lettings market offset by a reduction in developments as new home developers have slowed new starts. The consumer spent 8.3 billion minutes on the Rightmove platform, slightly higher than last year and very much confirming our central position in the property ecosystem.
We continue to deliver strongly in our core five business pillars for the business. Just a few examples here. In consumer, with more functionality and growing stickiness, we're accelerating our online valuation and track a property product usage. And we also now have over 40% of our e-mail leads delivered from our app.
Within core, our top packages in estate agency in new homes are both seeing very strong take-up. In particular, we have almost 1,400 branches on Optimizer Edge and we're looking to retire Optimizer 2020 towards the end of this year. We saw a record number of net new partners within our lettings business and we're progressing well on our rental operators and Lead to Keys business lines.
For the strategic growth areas, we're doing great in the first half year. With more than double the number of mortgage and principle submissions year-on-year, one-year sales growing very positively for the Lead to Keys product, which was recently launched and that's within our rental services suite of solutions.
And then first version of the new commercial landing page now gone live. The platform overall is strengthening every day. All of our tech teams are now using AI system tools for coding and seeing positive results. That really is an underpinning of future pace of innovation and efficiency. We're pleased to have welcomed over 100 new people to Rightmove, which is now is a firm accredited as a Sunday Times, Best Place to Work.
So, let's turn to an update on the underlying property market. As a reminder, our digital platform model is very resilient to many swings in the property market. We enable further digitization and make use of our data scale advantage from a very central position in that market....
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Rightmove plc (RTMVF) Q2 2024 Earnings Call Transcript