Rightmove (RMV) H1 2024 earnings summary

Executive summary

• H1 2024 results were in line with expectations, with strong operational and financial delivery, robust demand from agents and new homes developers, and continued product innovation.

• The platform remains the leading UK property marketplace, with unrivaled network effects, 86% share of consumer time, and increasing utility for consumers and partners.

• Membership grew 1% to 19,061, driven by lettings, with increased adoption of top-tier packages and stable agency retention above 95%.

• Strategic growth areas (Commercial, Mortgages, Rental Services) delivered 30–31% revenue growth, with Mortgages revenue up 176%.

• Product innovation and AI adoption are accelerating, supporting future growth and efficiency.

Financial highlights

• Revenue rose 7% year-over-year to £192.1m, with agency revenue at £138.5m (+7%), lettings up 12% to £23.5m, and new homes up 4% to £33.9m.

• Strategic growth areas revenue up 31% to £8.7m; Mortgages revenue up 176% to £2.2m; Commercial up 11–12% to £6.5m.

• ARPA reached £1,497, up 6% year-over-year; agency ARPA up 6% to £1,417, new homes ARPA up 9% to £1,940.

• Adjusted underlying operating margin at 72% for H1, with full-year guidance at 70%; operating profit £131.6m, adjusted underlying profit £138.7m.

• £100.2m returned to shareholders (buybacks and dividends); cash generated £143.2m–£143.8m, with 106–109% cash conversion.

Outlook and guidance

• Full-year 2024 guidance reiterated: revenue growth of 7–9%, ARPA growth of £75–85, and 70% operating margin.

• Membership expected to be up to 2% higher year-over-year.

• Medium-term ambition for double-digit growth remains unchanged.

• Continued investment in product innovation, digitisation, and strategic growth areas, with a progressive dividend policy and ongoing share buybacks.