Rightmove plc

Good morning, everyone, and welcome to the presentation of Rightmove's results for the first half of 2021. My name is Peter Brooks-Johnson, and I'm joined by Alison Dolan, our CFO. I'm going to talk through the highlights of the year. Alison's going to go through the more detailed financials, and then I'm going to spend a little more time giving you more colour on the housing market and our strategic developments. In the first half of this year, we've delivered financially and more importantly, strategically, which sets us up for the future. In 2020, COVID-19 upended the lives of everyone across the UK. And the last time we met, there was much questioning about how long it would take Rightmove to regain its momentum as the housing market emerged from lockdown. The Rightmove network effect has emerged stronger than ever as home hunters continue to turn to Rightmove first and customers invest more in our digital solutions. To demonstrate how we've emerged from the shadow of 2020, I've compared our performance versus June 2019. The 2020 numbers are here too, so if you wish, you can calculate that our revenue is up 58% on a year ago, but I think that's a level of flattery we don't need. Site traffic in the first six months of the year was again a record, with an average of 1.7 billion minutes per month being spent on the platform. The busy property market has created very different dynamics in our agency and new homes customer bases. Agency customers are very busy and focused on winning the right to sell properties efficiently. Our agency business continues to grow back from a year ago with a further 130 branches added in the first half of the year. Many of our new homes customers are forward sold until early 2022 and therefore we've seen a drop in the new homes developments and developers easing back on marketing as they have less to sell. In total, ARPA is up £86 on June 2019, with the agency ARPA growth of £107 driven by a good mix of price and product. We've been flattered a little with some of the one-off cost savings in the first half, which Alison will detail later. As promised at the full year, we've been returning the extra cash we built up in 2020, with £128 million returned, and consistent with our long-established policy, we are increasing our interim dividend in line with EPS to three pence. Beyond our KPIs, we've made much strategic progress this year. Rightmove's purpose is to make home moving easier in the UK. We'll satisfy our purpose and drive growth through innovation. Our strategy has three reinforcing segments. Firstly, we are the place home hunters turn to and return to first. This in turn makes us the UK's property platform unparalleled roi for our customers and then we are in a unique position to help both customers and home hunters by making the process more digital and also create new revenue opportunities for us this slide gives you some examples of our strategic delivery in the first part of the year we continue to innovate in our heartland of property advertising and tools for property professionals we generate return for our customers in four distinct ways we help them save time we have products which help them actively grow their market share we help them market more efficiently by using the power of by far the largest audience of home hunters in the uk and we help them grow new revenue streams for example the secure video viewings platform we introduced last year has saved our agency customers nearly 6 000 days in wasted time arranging and performing viewings in the last year we continue to innovate and deliver new efficient marketing products to our customers i previewed the advanced development listing back in february it launched in april and we've been really pleased by the performance it's delivering a lead uplift to developers of around 30 developers also seem pleased with it with over 20 of developments now listing using the new product and to demonstrate the value of this innovation to us given its trajectory this product is likely to add three million pounds revenue to new homes next year during a time when developers are reducing their marketing spend As we previously talked about, we're experimenting with demystifying online conditional auctions on site. And this is to help agents grow a new revenue stream. The first provider is now live with four more in the process of integration. I'll talk more about the benefits of our unrivaled data asset in Opportunity Manager later. We believe there's much opportunity in making the home moving process more efficient by being more digital. I'll talk more about the digital tenant journey and what we've learned from our mortgage experiment later. There's much excitement for the future, but this is all built on our strong position today. Before I give a little more colour on our strategic position, I'll hand over to Alison to talk more about the numbers in detail.

Thanks, Peter. Good morning, everyone. The first half of 2021 shows a pleasing continuation of the growth scene in 2019. As Peter just explained, our revenue, product and ARPA growth in the first half of this year is best illustrated by a comparison to 2019, the last full year of no pandemic-related disruption. So compared against the half year to June 2019, revenue has increased by £6 million, 4%, comprising a £4.8 million increase in agency revenues, a 3.7 million increase in the other operating segment what we call our breath businesses all partially offset by a 2.5 million pound reduction in new homes revenues the agency growth of 4.8 million was driven by strong product purchase and package upgrades on both 2019 and 2020 as agents competed to win vendor mandates in this strong market In fact, product revenue as a percentage of overall agency revenue has increased by almost five percentage points since 2019 and is currently at 57% of total agency revenues. Upgrades to our premium package optimizer 2020 contributed particularly strongly to revenue growth in the six months of 2021. New homes revenues continue to reflect the challenges of a forward sold market where developers are selling off plan are struggling to build at the pace necessary to meet current demand and therefore have less of a need to market new properties. In other revenues, with the exception of overseas which continues to be impacted by travel restrictions, each of the third party advertising, commercial and data services businesses has grown relative to June 2019 and each is up by about a million pounds on that date. Mortgages revenue is now two million pounds The product launched late in 2019, but is up by about a quarter of a million pounds on June 2020. Year to date ARPA at the 30th of June was up 8% on 2019 and at 1163 pounds is our highest ARPA to date. Within that, agency ARPA was up over 11%, an uplift of 107 pounds driven in part, as I mentioned earlier, by product upgrades, particularly to Opti 2020. The period overall saw a big uplift in the purchase of incremental digital products, both as package upgrades and on an a la carte basis. New homes ARPA was slightly down on 2019 by one and a quarter percent, reflecting the current market. The new homes market tends to run counter cyclical to the agency market This is a dynamic we have seen before and seen recover, but we do expect the current situation to remain consistent for the remainder of 2021 and into the first half of next year. The six-month trailing ARPA has been shown here also as it shows the clear line of continual growth in ARPA since 2019, looking through all of the business disruption of 2020. The charts on this slide show the drivers of ARPA since June 2019. Of the agency 11% uplift, 45% or £49 is due to price increases over the two-year period. Included in this is £9 of ARPA from the six months to June 2021, in which we brought forward a number of price increases which had been scheduled for later in the year.

A further 36%

£38 was driven by package upgrades. In this six-month period alone, over 800 customers upgraded to Optimizer 2020, almost 100 of which upgraded directly from the basic essential package. The average monthly revenue uplift per customer upgrading to Opti2020 is just under £300 a month. 16% of our independent customer base were on this top package at the end of June, up from nine percent in december 2020 and we have continued to upgrade additional customers to our top package throughout july included within this 38 pounds is revenue from customers continuing to purchase additional products on an a la carte basis beyond their package thresholds as they compete to win vendor mandates in a strong market like this one Revenue from local valuation alert alone, for example, is up 30% since 2019 and featured property has seen a similar uplift. And then finally, customers choosing to take incremental products in lieu of a price rise on their core subscription contributed a further 19% or £20. It's always a very pleasing outcome when this happens. Conversations that start as a price increase end up with a package upgrade. and we generally find that customers retain the additional products that they have selected in this way. We've also shown the drivers of the new homes ARPA which are slightly different to agency. New homes ARPA is down £17 over the same period but shown here are the gross movements within ARPA where we have seen good growth from greater product purchase in particular which alone has contributed £42 of ARPA since June 2019 As with agency, the proportion of new homes revenues from product has also increased since 2019 by three percentage points in this case. Price increases have contributed £24 of ARPA in the same period. However, digital marketing campaigns are where we have seen new homes developers choose to reduce their marketing spend, which has eroded the product and pricing growth with an £83 reduction to give an overall drop of £17. digital marketing is discretionary spend above subscription listings and it is typically where we would see the developers cutting spend in a market as strong as the current one so although it has eroded the gains in product upgrades and pricing those latter two provide a strong base for growth once the market returns to more normal conditions relative to june 2020 operating costs have increased by five percent or 1.8 million to 35.2 million largely driven by recruitment for our product development and sales teams as we indicated when we reported 2020's full year results this investment is partly in response to the recruitment pause during 2020 and partly to reflect continued investment in product and website innovation on recruitment We have been recruiting throughout the first half, but in the heart of lockdown it proved more difficult to do at the scale and pace that we had been hoping to achieve, and so the pace of acceleration in headcount costs has been lower than we thought it might be at the beginning of the year. Although we are now running at the right pace, headcount cost in the first half has been weighted towards the final months, and therefore the run rate of costs in the second half will be higher. Once we've completed the recruitment catch-up, one in every three of our employees will work in product development and a further one-third in sales, which is about what one might expect from a digital business such as ours. Technology costs, which include all the costs associated with running both our sites and the business itself, so hosting, licenses, traffic costs, etc., have increased marginally, up by 0.3 million. all associated with the increase in traffic to our sites over the period no meaningful number of employees have returned to the office yet which has meant that staff related cost savings have been available for longer than we expected 1.3 million in this reporting period we are now reasonably confident that we will have everyone back in the office three days a week from september and these costs will return closer to normal overall costs are back to their steady state of just under 25% of revenues, which is where they were in 2019 and where we anticipate we will end the current year. It is also broadly where we expect them to remain for 2022. All of this has resulted in underlying operating profit of 117 million, up 5% on 2019 and an associated operating margin of 78%. As I've mentioned already, the second half of the year will see a higher run rate of costs, reduced savings as more staff return to the office, and obviously no repeat of the Van Mildred provision release. So the full year margin will fall by a few percentage points. We do, however, expect it to be ahead of the 71% level we discussed at last year's full year results, given the strong revenue performance in the first half. On cash, operational cash generation remains strong at 106%. a level similar to last year. All of the cash generated in the half, along with £30 million of cash generated in 2020, was returned to shareholders with the resumption of the share buyback programme and the payment of 2020's final dividend in May. We ended the half with £68 million of surplus cash, down from £97 million in December and much closer to our expected final year balance of about £50 million. as peter mentioned earlier we are also announcing a 2021 interim dividend of 3p which will be paid in october and which will amount to about 26 million pounds we will also be continuing the share buyback program throughout the second half on the pnl we've shown the impact of the various adjustments share based payments and the release of the van mildred provision The underlying operating profit of 117 million and the associated operating margin of 78% to which I referred earlier exclude the share based payments, but include the provision release. The change in the balance sheet is driven almost entirely by the lower cash balance working capital metrics remain consistent during the period, and there has been no increase in bad debt. We continue to pay our suppliers on the same prompt terms as previously, with average days payable for trade creditors remaining at around 20 days. Now, I mentioned at the full year results that we would report on one element of ESG at each of our reporting periods, and today I'll update on the S element, the social element. Rightmove sets out to make our company a great place to work, where people can bring their full selves to work, where they are helped to develop and progress and to feel supported and mentored when they face challenges. So for our management team, social is about creating the right conditions and encouraging the right behaviours to facilitate this, ensuring not just that obstacles for our people to develop are removed, but that opportunities for progression are available and that developmental training and mentoring support are accessible at the right times throughout people's careers with us. During the pandemic, supporting people who have struggled was an acute need. But beyond that, ongoing measures to support the well-being of our people have always been important, as has the sense that when our people look around the company, they can see people like them and feel a sense of inclusion. There are three areas of focus for us, therefore, when it comes to employee support, well-being, training and development and gender and ethnicity. During the pandemic, we launched a wellbeing personal and professional development programme called How We Thrive, giving all employees access to multiple health and wellbeing workshops, support networks and therapeutic coaches. And an arrangement with our insurer has made available confidential private sessions with a mental health coach, which have been accessed by over 20% of our staff in the past six months. Our 16 mental health first aiders triage mental health issues that are brought to them, using non-judgmental conversations either to resolve an issue or to guide those involved towards external support. In appointing them, we have also sought to remove any perceived stigma and provide an inclusive environment where people can openly seek support. One of the biggest jumps people make in their careers is the move from team member to manager. As right move, this can often mean a move to managing people who were previously peers, which can be quite daunting if done with no training. So management training and ongoing development is a key area of focus for us. Managers are trained across a six month period on how to provide and receive ongoing feedback and how to have open conversations about performance, pay, development needs and behaviours. over 5,000 hours of this training were delivered in 2020 alone. Getting the gender and ethnicity balances right has always been important at Rightmove, but this year we have actively delayed a number of senior hires until we could find females who were right for the role. And we will do more of that as we seek to maintain equal female representation to close our gender pay gap. The mean of which is currently at 24%, and the median at 33%. It is a gap that we are determined to close. In the meantime, we are proud of our gender balance board with three non-exec directors from ethnic minority backgrounds, exceeding the Parker Review's recommendations. And then lastly, supporting the communities in which we operate, namely Milton Keynes, London and Newcastle, and supporting causes which are important to us, such as promoting the study of stem subjects particularly for girls has been part of our agenda for the last few years of note this year we've signed a partnership with generating genius whereby our employees provide a mentoring network to the participants of the black women into tech program we awarded a university scholarship for someone to study a stem subject to degree level and we donated computers to needy schools in milton keynes during the pandemic There's a lot more to cover, but I hope this has given you a flavor of the social issues that are important to us as a company and the sort of culture we try to foster as Rightmove to ensure that our people are proud of the company they work for. Part of the remuneration for us as executive directors requires that over 90% of our people think that Rightmove is a great place to work. And I'm happy to report that 93% of them thought so in December, 2020. We also, of course, want our culture to be a reason for new people to come to work with us. So that's it from me. I will now hand back to Peter to take you through the strategic update.

Thank you, Alison. I'll start off by briefly covering what happened in the housing market in the first half of the year. The frenetic activity towards the end of last year and early this has now started to manifest in transactions being completed, as you can see in the top chart. in fact according to hmrc there were more transactions completed in the first half of 2021 than in any six-month period since before 2006. for many of our agency customers the higher number of transactions and a slightly higher commission rate has enabled them to rebuild their balance sheet after the turbulence of 2020. the big question many have been asking is what will happen now the stamp duty holiday is starting to taper in england as a reminder In England, at the end of June, we saw the stamp duty free threshold for all transactions being cut from £500,000 to £250,000. In September, this extra relief will be withdrawn. And once again, only first time buyers will be stamped duty free up to £300,000. It's impossible to determine how much of the market has been driven by the stamp duty holiday. But our proprietary data, shown on the bottom left, gives cause for cautious optimism post the withdrawal of the holiday. This graph shows the level of demand, the number of sales being agreed, and the number of new listings, all indexed versus 2019. The gray line is our forward-looking measure of demand. This is the number of people actively looking to buy in the market. And looking at our most up-to-date data, despite the end of the holiday, in July, demand is still 30% higher than the same time in 2019. And this demand is feeding through into sales agreed. The orange line is the number of sales we believe are being agreed. And at the moment, that's typically four to six months ahead of the property completion. Putting deals agreed now beyond the end of the September deadline. Again, the latest data in July shows that sales agreed are exactly the same as 2019. To give more comfort, we've only seen a slightly higher number of transactions fall through this year, which given the significant increase in deals agreed is very positive. In fact, as July has progressed, the fall through rate has returned to the same level as 2019. This is consistent with surveys we've run, which suggests that only around 4% of buyers would pull out of a transaction if they failed to meet the stamp duty deadline. Most people are moving to find a home which meets their needs. They don't see it as an asset. I spoke back in February about the lack of new stock coming to market. You can see from the teal line this trend has improved a little since then, with the relaxing of lockdown and possibly the return to school. But we're still seeing new listing levels around 10% down. The supply and demand imbalance is impacting the market in a few different ways. Prices are being driven up. The average asking price is nearly 7% higher than the start of the year. And the property market is becoming more efficient. Typically, only around a half of properties listed will sell. This has risen to nearly 70% recently. and that's supporting the increased rate of sales being agreed. New agent formation is slower than one might expect at this point in the cycle as, of course, a new agent has to win all their new stock to begin trading. New homes developers are also experiencing record demand with 20% more developments selling out in the first half of this year compared to 2019. Taken together, as you might imagine, it would be advantageous for Rightmove if the end of the stamp duty holiday did cool the market a little bit. So now I'll talk more about Rightmove. I'll look at each of the following in turn. Our lead with Home Hunters, our package and product sales, and the number of customers. I'll then wrap up by looking at some of the innovations we've delivered. So starting with our lead with Home Hunters. Time spent on Rightmove was up nearly 60% last year. And if you needed a demonstration of the instinctive place that Home Hunters turned to, We recorded a new busiest day ever on the 3rd of March, the day of the budget, with over 70 million minutes spent on the platform in a single day. You can see from the ComScore chart that our market share of time has nudged up despite quite a lot of marketing activity from our competitors. I think it's worth just alighting on the ComScore chart for a moment. Firstly, you'll notice that ComScore has yet to begin tracking booming. We also use similar web tracking, was perhaps not as comprehensive, it has the benefit of being more real time. Similar web shows booming share of time to be less than 1%. Secondly, you may remember the ComScore methodology change back in February 2019. ComScore have alerted us to another upcoming change, which I expect will reverse some of that step up. So for those of you who follow ComScore, don't be alarmed if you see that happen in the next six months. But all of this, adds up to one way we deliver value to our customers quality leads which were up over 50 year on year in order to win sellers agents are aiming to differentiate themselves from their competition the strong sales market has focused agents on winning the right to sell a home more effectively and more efficiently i'm particularly pleased with the sales rate of optimizer 2020 The graph on the bottom right compares the package numbers of Optimizer 2020 with its popular predecessor, Optimizer 2015. Since launch, it has consistently outperformed the previous package, with COVID only slowing it down for a few months. The right hand end of the graph graphically demonstrates the value our customers see in Optimizer 2020 to help them succeed, with record numbers of customers upgrading during the first half of this year. And that sales momentum has continued in July. The pie chart shows which package those customers were upgrading from. And as ever, the majority are upgrading from optimizer 2015. But nearly a third have upgraded from our middle enhanced package, having seen the benefits of our products and wanting to make the most of their marketing budget. For now, our focus remains on the on optimizer 2020. But enhanced is still playing a very important role in our package ladder. And that's one of the design features of our package structure. Customers can upgrade through it as they feel more confident. And as they upgrade, they get even more value. And as Alison discussed, those upgrades can either come as a result of a pricing conversation or as the result of a customer request. I'm content with how we structured our pricing conversations this year. And given their success, we've pulled forward some of the conversations we were intending to have later in the year. So far, we've spoken to around twice as many customers as we had intended to. And we've added some more activity in the second half. to get a head start on the 2022 plan. So moving on to customer numbers. Demonstrating the underlying value of our proposition to agents in both slower and stronger markets, we've had the lowest number of first half leavers since 2014, which has driven our retention rates to the highest it's ever been. I think it's also testament to support we gave customers last year in the depths of lockdown. However, as I mentioned earlier, new agent formation has been slower than might have been expected, as the lack of new stock coming to market is making it very difficult for new agents to start up. In addition, the higher sales efficiency means there are fewer instructions which end up moving agents, meaning there are less second bites of the cherry for agents who miss out on an instruction first time. I think there are a number of existing agents waiting for slightly more stock to come to market before committing to a new branch too. For the second half, I expect branch numbers to continue a gradual rise unless we see a sustained growth in new listing numbers. In new homes, as you will have heard us say many times, developers are already forward sold well into next year. It's simply a story of reduced supply and increased demand having to work through the system. The number of new homes listed was 15% down in the first half compared to the same period in 2019, as the difficulty constructing against the backdrop of social distancing reduced output. And on the flip side, we've seen over 50% more demand for new homes. In terms of number of new homes developer companies advertising with us, that hasn't changed. So I fully expect the number of developments will rise when we move out of this particular supply and demand imbalance. Looking forward for the next six months, I think we'll continue to see a drop in development numbers for most of the second half, as the new home construction start numbers are still down over 20% in the first quarter compared to 2019. And as I showed earlier, we don't see any significant drop in demand. So how are we innovating to help agents and developers succeed in this market? I thought I'd show you one of the products which our customers are using to win. Our unrivaled knowledge of home hunters allows us to help agents uncover the potential sellers within the pool of potential buyers they already know. And using our data, we can predict when the seller is ready to consider instructing an agent. rightmove is in a unique position as two-thirds of the people sending leads have yet to select an agent to sell their home opportunity manager is exclusively available to optimize the 2020 customers it uses a real-time algorithm to help the agents prioritize their work with a simple color code in stock constrained markets like this it's even more important for agents to be able to talk to potential sellers before their competition Opportunity manager correctly identified around a third of the properties which came to market in the first six months of the year, typically giving the agents who use the product a month head start over their competition. Of course, we can only highlight the opportunity. The agent still has to win the instruction. But to give a sense of scale, that's a commission pool of over half a billion pounds. Looking a little further out, we're going to make home moving easy by helping home hunters be more transaction ready and by being more digital. As I've talked about in previous presentations, we've been focused on improving the process of renting a property for the last few years. We believe because of our unique position in the market, with more people searching for rental properties than anywhere else, we're the only company to be able to truly change the rental process for the better from end to end. We've just delivered the first element of the second phase of the plan. We've enabled one-click reference ordering from Rightmove+. When a tenant has requested an appointment via Rightmove, an agent can request a reference from us via Rightmove+, and the property and tenant details are pre-completed in the reference order. The agent can also see the status of all their current references from Rightmove+, with the obvious efficiency benefits. This streamlined flow from lead to keys is what we'll continue to focus on in the coming months. there's more integration planned in the second half of the year to enable the tenant and appointment details to feed into the agency rm systems and we're also working on the contract part of the process and expect to launch that early next year the digital insurance flow for tenants who pass past referencing has just been launched you may remember we've been relying on the telephone up until now to make sure we could learn the basics as fast as possible we've got a lot to learn around the digital conversion for tenants insurance as a key part of the service is helping tenants understand that they're not covered by their landlord's insurance this need for confidence has been backed up by a notable number of tenants going through the digital flow and then getting in contact with us directly to purchase and all of this activity has been supported by rebranding vanmilder to rightmove we think our trusted brand will bring more confidence to tenants in what is clearly a difficult process referencing is key to the digital rental journey it's both the moment when a tenant finally gets a reasonable level of certainty that they will be able to move in and it's also the doorway to a number of new opportunities for us we know that timing is crucially important when selling ancillary products like content insurance broadband and energy and referencing is the best indicator of a tenant when a tenant wants to buy these products not only does referencing generate revenue in its own right this timing indicator may well give us an advantage when marketing solutions to tenants and landlords today for every reference we complete we generate just over four pounds of revenue from tenants and landlords taking into account the current attach rate we're early in the journey of scaling this revenue opportunity so i wouldn't want you to get carried away just yet This is the first time we've created a revenue stream from consumers. I see this as becoming meaningful, perhaps in a couple of years time. And we're working on three levers to grow this revenue. Firstly, increasing the number of references we complete. We only process around 7% of references in the market. Referencing is currently a competitive industry with little differentiation. We believe that by continuing our integration and simplification, we will be able to create a best in class reference, which is simple for tenant and agent, which balances speed and accuracy. In the last year, we've increased our referencing speed by 20%. It's pleasing to see that our attach rate for insurance is climbing, and that's vindication of our strategy of working hard on offering the right product in the right way. But we can see that we've got more work to do, particularly with our new digital flow. And finally, we can offer more services to tenants. We're still in the early stages of learning with TV and broadband, as you can see from the chart. And beyond that, I'm sure you can all think of things that we might be able to successfully offer to tenants. And in doing this, we're not only creating a new revenue stream for ourselves, we're making home moving easier for tenants and much more efficient for our agents. We're also working on making home moving easier for our buyers. Earlier, I said I'd share some of the learnings from our mortgage experiments. And what we found won't surprise anyone who's been searching for a property and who needs a mortgage. Not only can the process be daunting, home hunters tell us it significantly adds to the stress of finding your next home. The fundamental reason is that as someone looking for a home, it isn't until very late in the process you become certain that you'll actually get a mortgage and therefore that you'll actually be able to buy the home you're looking at. If one looks at the current flow, shown on the top, you can see that most home movers only really start to be confident that they can get a mortgage at the point they want to make an offer on the home they've chosen. That's the fourth step along. That's pretty inefficient. It can also be pretty upsetting, as many home movers will have pretty much set their hearts on the property by that stage. Whilst there's much activity in making mortgage application more digital, we are in the unique position to bring the mortgage earlier in the home buying flow. Looking at the flow we're building on the bottom, not only do we believe we can increase the home movers' confidence earlier in the process, probably before the viewing, by offering easy, personalized, lender-backed decisions in principle, we also think we can remove some wasteful steps too. So far, our work gives us confidence in our approach. By working on our tools, content, and placement, we've doubled the number of leads we sent to our lender partner in the last year. And those leads are of better quality, with three times as many receiving a lender-issued decision in principle as a year ago. But again, we've much to do and much to learn in this space. We will continue to focus on the process up to decision in principle with more innovation in bringing together mortgage and property search tools and joining up helpful content. By doing this, we will increase the number of leads and the conversion rate to decision in principle, which in itself will lead to more mortgages being written. We've got much to do and much ambition. But let's bring it back to 2021 and wrap up with the outlook. The network effects at the heart of our business are stronger than ever, with record traffic and leads. At the moment, the property market is busier than it's been for a long time. Whilst the level of impact the end of the stamp duty holiday will have is hard to predict, the indicators we have give cause for optimism that demand we see in the market is founded on a desire to move, rather than just a holiday. Agents continue to recognise the value in our unrivalled audience and products. with the strong ARPA growth being driven by a combination of pricing changes and agents upgrading package to grow their business. Looking forward, we see that momentum continuing in the second half, and we are planning to bring forward some 2022 pricing changes into this year. This won't impact our revenue this year, but will mean we hit the ground running in 22. Mindful of the lack of stock, I think it's prudent to assume we'll see a small growth in agency branch numbers over the rest of the year. And equally, I think the very good conditions will continue for new homes developers. So for the rest of the year, I'd expect the number of developments on site to fall as they set out. And as you've seen, there's no slowdown in our ambition to make home moving easier or indeed our long-term outlook.