Rightmove plc

All right, good morning and welcome to Right News 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 up front 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 are starting to look more positive and supportive, but as usual, the market is operating at different speed within different sub-segments, and we'll get back to this. Sorry, now we have this going the other way around. Oh, here we go. um so in that context right moves platform continues to demonstrate its strength we saw revenue growth of seven percent with the letting segment going up 12 year-on-year arpa of almost 1500 pounds is tracking in line with our guidance for the full year at 75 to 85 pounds growth membership is one percent higher compared to december 2023 driven by strength in the lettings market offset by a reduction in developments as new homes 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 of property product usage. And we also now have over 40% of our email leads delivered from our app. Within core, our top packages in estate agency in new homes are both saying very strong take up. In particular, we have almost 1400 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 in principle submissions year-on-year one-year sales growing very positively for the leads 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 as 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. What this table or slide sets out is a view of the current conditions. The sliders provide a view of metrics in H1 this year within a 10-year context, with the green blobs representing the current position and the arrows, our expectations, of how we'll move from an outlook perspective and then on the sides you have the period high and low point years for each line within that 10 year period so as a reminder both the market and our business model demonstrate some semi counter cyclicality so these factors of course do move a little bit differently and just stepping through it briefly in the first row for consumer affordability the backdrop is mixed rates remain elevated Relative to recent history and the typical five-year fixed rate is just under five percent according to the latest mortgage tracker for might move As we all know there are further expectations for lowering of the rates from BOE And of course the mortgage lenders will follow with that That will indeed stimulate transaction the remaining four sliders for the resale market show you that there's a good buyer demand sort of in a catch-up mode from last year really and and with it absolutely growing listings volumes notably though from a new listings growth perspective we're still only in the middle of the road in historical context sales agreed are recovering that's helping agent confidence and of course the outlook on cash flow crucially though it still takes seven months from the first listing until completion of the sale which is at the point at which our agent partners receive their payment On lettings, continued price growth supports the agent commission pool. There's an ongoing increase in available stock and a tempering of demand in lettings. So it's tilting back just a little bit, the still very imbalanced supply and demand picture. So structurally, that imbalance is very much in place. In new homes, in this part of the rate cycle, it does exhibit the slower for longer equal to the rates. with developers focusing on completing sales at existing sites over building new developments at pace and scale developers now also compete with larger resale listing volumes as we can see on the platform now we hear of and expect new development builds to trend more positively over time and as the environment improves for builders maybe as a general comment on the election result and what it means we're certainly pleased that housing is high up on the agenda And as we have been urging all along from from springtime actually But the labor government now really has sort of a proof in the putting period from its clearly stated ambitions So I'll share a little bit more detail on the three cups three key sub makes some markets within a core business For resale you can see in the top chart. We continue to expect an average year for housing transactions just shy or about 1.1 million sales and looking at our own data at the bottom left you can see from an agent perspective the market is resilient with our highest product house price index slightly higher compared to last year and sales agreed volumes are 13 higher so the outlook is improved compared to 2023 with both supply and demand indicators for the transactions on our site being higher compared to what it was last year however supply today measured in available stock and new listings is only in line with 2019 the last normal year and as i said elevated times to completion mean that there's a lead time from those positive agent pipelines and the home transaction agreements turning into actual cash flow in our sentiment survey which we have on the bottom right we can see that agent partners are decidedly more optimistic compared to the previous period but they're also not sky high and it's already not close to 100 yet Onto rentals. The top chart is a new way of displaying the imbalance between supply and demand that we talked about before. It shows the number of inquiries per available property on Rightmove since the start of 2019. So pre-COVID, the average was eight inquiries. At the peak in 2022, this rose to over 30 on average. Today, the level of supply, demand and balance is somewhere in the middle with an average of 17 inquiries. Still quite a lot. so the main demand remains almost a third higher than pre-pandemic levels predominantly as a result of affordability constraints in the resale market supply-wise we've seen a slight increase in new listings for rentals but it's nowhere near enough looking through our data and doing some analysis it suggests that 50 000 properties would be required to return to pre-pandemic levels of rental stock or 120,000 additional properties to limit rental price growth to be more aligned with the inflation expectations of around 2%. To date this year, we've seen around 7% price growth for rentals. So with our product suite and ongoing expansion, we cover an increasing amount of segments and needs and monetization opportunities in the large rental market. As a reminder, it generates as many or more moving events every year compared to the sales side of the market now trading conditions for developers remain challenging a combination of affordability constraints for buyers build cost inflation and extended build and release times have put pressure on all players but in particular the smaller and medium-sized developers you can see this impact in the top chart which is the ratio of housing starts to completion which was at its lowest ever level in q4 2023 based on ons data now there are grounds for cautious optimism with the mentioned new government ambitious ambitions no doubt better affordability is another key parameter for activity to start happening all the large corporate builders all partners are might move maintain their public completion commitments which while in aggregate are lower than the previous financial year, they're sort of expected to now be in trough levels and looking to recover into calendar 2025. So we set this out at the bottom left on this slide. Now in terms of right move products, we saw a good recovery in the number of developments using our coming soon product, which is on the bottom right. Coming soon is a no cap product for when boards first go up around the future site. so it's kind of a lead indicator for full of development spent the quarterly trend is positive but i would note that there was a bit of leveling off around the election and in the early weeks of july perhaps also influenced by football so it feels early to call it a whole time recovery for sure so just summarizing market backdrop continuous strength in consumer willingness to transact should be supported as rates hopefully start falling and the overall remark market including pricing remains stable we think that resale agents will see an average year transaction wise with a notable bounce up from last but cash flow effects still lagging as a result of the lengthy completion timetables rental agents continue to benefit from a relatively elevated supply demand imbalance and therefore pricing strength new homes absolutely slower for longer but grounds for optimism reflected in completion projections in the initial political commentary that we just had And with that, over to Alison.

Thanks, Johan. Morning, everyone. Lovely to see you all. Right, on to the results. So, revenue has increased by 7% on the first half of 2023, with growth across all areas of the business. now in this slide we've kept the same presentation format as in our full year results which includes rental services within the lettings part of core which is where it sits operationally but for this audience it also splits it out as one of our strategic growth areas so agency revenues increased by seven percent to 138.5 million the increase was delivered through a mix of package upgrades particularly to the top package continued use of our digital products, and good outcomes from our annual price increase process, which is now largely complete. In the letting side of agency, revenue has increased by 12% year on year. As Johan set out, the supply-demand imbalance has reduced somewhat, but it does still remain, despite being down on peak levels. So as a result, we have seen an increase in membership and product spend within this letting segment, as well as good uptake of our lead to keys product, which provides enhanced lead qualification and efficiency benefits for lettings agents. New homes revenues have reflected the underlying market with growth of 4% after a record performance in 2023. New homes growth was driven by ARPA growth of 9% with developers continuing to favour our advanced top package and compelling products, particularly native search adverts. The headwind, however, was a reduction in developments in the market and therefore on our site, and we'll come back to that shortly. Revenue growth in our strategic growth areas has increased by 31% to 8.7 million. Within that, commercial real estate revenues have increased by 11% to 6.5 million. growth was driven by increased membership numbers now just under a thousand and up eight percent on the first half of 2023 with arpa broadly flat at about 1100 pounds we have soft launched as johan said a v1 of the landing page and we expect a more significant upgrade to that during the second half mortgages revenue was up 176 percent year on year with revenues of 2.2 million for the first six months of 2024 ahead of the whole of last year. As Johan mentioned, we generated more than double the number of mortgage and principal submissions than during the comparable period and good broker lead volumes for our broker partner. And we have also just recently launched a second agency owned broker to the platform. And we've also started working on a remortgage product proposition which will launch a little later. Rental services revenues are up 29%, with good early take-up from Lead to Keys, which launched in the second half of last year. And then other revenues, which include data services, overseas and third-party advertising, grew by 2% in the first half, and we do expect a slight recovery in the second half. So the chart on this side breaks out the drivers of revenue growth between ARPA and membership for estate agency and new homes. And for the first time, we're also setting out the split between sales agents and lettings only agents. Within resale and dual sales agents, good ARPA growth as a result of ongoing uptake of our products and packages, along with BAU contract discussions as expected, has more than offset the slight headwind from a market decline in branch numbers. In lettings, you can see a different dynamic to the other two sub-segments as around 70% of growth in this sector came from net membership growth. ARPA contributes as well, but to a lesser extent as our new lettings joiners do tend to be lower ARPA partners. And then within new homes, the drag from lower development numbers is clear on the chart. offsetting over half of the revenue growth from the ARPA uplift. Meanwhile, New Home's ARPA growth has remained consistently strong. Posing on ARPA, overall it has grown by 86% year-on-year to £1,497. As ever, discretionary spend on product remains a more important feature than pricing, with 53% of ARPA growth due to that product spend. Agency added 76 pounds of ARPA up 6% on the first half of 23 to 1417 pounds. And we saw notable growth in vendor lead products, local valuation alert and right move discover as partners continue to see them as crucial to winning new vendor instructions. These products delivered a further 8% increase in leads relative to the first half of 23. our contract renewal discussions have all proceeded as expected and are materially complete for the year with no change to our long-standing pricing policy New Homes ARPA has grown by £164 or 9% year-on-year and we see this as a really good result in the context of a tough housing market and following two record years where New Homes ARPA increased by £450 which was 34% across 22 and 23 we've seen successful contract renewals across all partner segment with ongoing uptake of our top tier advanced package which now accounts for 56% of subscriptions ARPA growth was also supported by increased spend on discretionary products particularly display products such as native search adverts which grew by 5% in revenue terms versus the first half of last year and finally the launch of the access package has helped us to welcome more developments onto the platform with a 32% growth in housing associations on the site in the first half but again with a slight trade-off in ARPA total membership at the period end was just over 19,000 partners 16,193 in agency and 2,868 in new homes As we set out in our May trading update, agency numbers have grown by 2% on December and the chart on the bottom left highlights our really strong agency retention at 95% with consistent joiner numbers and a significant reduction in the number of leavers. The chart bottom right examines this further showing how materially membership growth has been supported by the lettings segment. We added more lettings partners in the first half of 2024 than in any previous first half in the past 10 years. We now have around 290 partners on lead to keys, of which around 90 are completely new to Rightmove, attracted by the efficiency gains from this software. Within new homes, the chart on the top right focuses on our largest corporate partners to give a consistent view over time. The orange line shows that we continue to retain all of the large developers on the site and you can see from the green bars how the number of developments has reduced every month since January with development numbers at the end of June the lowest they have been since December 2021. We heard from Johan earlier how the large developers do have public unit completion targets and the new government support for house building has been well flagged. So as a result, we are confident that as activity levels pick up again rightmove will remain the place to view virtually the whole of the UK property market in one place operating costs increased by 15% 7.1 million pounds year-on-year of which the majority was an increase in people costs we increased our headcount by 12% from December and by the end of the year over 80% of our staff will be in either tech or partner facing roles Total operating costs were £53.4 million with an associated adjusted underlying operating margin of 72%. This measure excludes the share-based payments as usual and now also excludes the co-adjute charge of £3.6 million and this is the metric we will continue to use for the full year 24 and for the first half of 2025. As in every year, we expect the margin in the second half to be lower than in the first as a result of the full year effect of payroll increases and our usual ramp up in marketing activity leading up to Christmas. So as a result, we are reiterating guidance of a 70% adjusted underlying margin for the full year. So looking at the income statement without the co-adjute charge and without the share based payments charge, adjusted underlying operating profit was 138.7 million. A few points on the items below operating profit. Share-based payments and finance income were both broadly in line with prior years, and our income tax reflects the UK corporate rate of 25%, but with some non-deductible capital items leading to an effective rate very slightly higher than that. As in every period, we have continued to buy back shares. Our weighted average share count is now below 800 million and full details of that are in the appendix. We remain highly cash generative with 143.8 million of cash generated in the half and an adjusted cash conversion ratio of 106% of operating profit compared to 102% in the first half of 23. largely driven by improved working capital metrics. A total of 100 million was returned to shareholders, 55 million via the buyback and 45 million via the final 2023 dividend. Cash tax was £32.9 million, higher than in the first half of 2023, reflecting both increased profitability and the full impact of the UK corporate tax increase from 19% to 25%. and we ended the period with £23 million of cash on the balance sheet. So our capital allocation policy and guidance for 2024 are unchanged. We will continue to prioritise investment in the business, including remaining open to inorganic investment to accelerate our strategic delivery. After investment for growth, we will continue to return all excess cash to shareholders via a progressive dividend and the buyback thereafter we reiterate all guidance given in our May trading update we continue to expect membership numbers to be up on the prior year by up to 2% we reiterate the ARPA growth range of 75 to 85 pounds and total revenue growth in the year of between 7 and 9% all at an operating margin of 70% thanks everyone I'll now hand back to Joanne

Allison all right so I'll continue with some of our operational and strategic main points now this diagram I really hope is familiar but it's worth repeating for two seconds these are the high-level building blocks that we have on our powerful platform on both of the sides they provide a very strong network effect and combined with a strong and very salient brand it's a real note for right move as a company Now we are decidedly accelerating product development on both the consumer and partner side of this network and actually in many more sub-segments of it, which you can see here. Finally, we are powered by our vision to give everyone the belief they can make their move. There is still more opportunity. So I'll give a few examples of how this works out. If we start with focusing on the partner side of the network, as a reminder on the left, we increase our throughput of product development and innovation ongoingly combining the largest data signal universe in the uk property market with consumer research and partner feedback we can deliver tailored product increasing segmentation and we can indeed get into substantial scale faster in the middle of the slide a reminder what it should lead to and it does that is our platform really drives the outcomes that our professional partners most value to grow their businesses a few examples here three out of four agents say that we are the most effective at driving leads we deliver five times the sales outcomes and eight times the lettings outcomes compared to our nearest competitor on the right just want to point out that for well over a year now since spring 2023 we've been working to pool together research data and feedback from agents to launch a refreshed partnering framework that we call building success together i'll come back to that a little bit later Now, Rightmove remains by far the largest and most instinctive place that home hunters turn to and return to. So, regardless of various comparison sources you can look at, and there are quite a few out there, Rightmove is displaying solidly over 80% share of time spent across portals on CommScore and Ipsos and above 70% for SimilarWeb. Our own data, bottom left, shows a slight uplift in both visits and time compared to last year. both of these metrics are significantly above their pre-pandemic levels as a reminder now we focus on the quality of the traffic as well as the volume and in in that light it's important to remember that over 85 percent of our traffic comes organically to us with consumers actively seeking out the right new brand and as i mentioned before our app users deliver well over 40 percent of our email leads and for our partners the leads that we deliver are 6% higher in the resale segment year-on-year and in aggregate almost 40% higher than pre-pandemic. So the accelerating rate of product and innovation, here is just a graphic and some examples. So we're delivering over 130 features and enhancements just in the first six months of this year. we're doing it with now 24 product teams compared to 16 this time last year all of our over 300 technologies are right new are now coding with assistance from an ai co-pilot and over 80 percent of our engineers have reported early on feeling more productive about it now pausing on ai just a little bit more broadly we have around 10 applications or so at an advanced or deployed deployed stage across all various parts of the business small example with a big impact is that with a vertical ai tool we're now saving 500 person days equivalent work for so-called dsars or data subject access requests which were illegally required to support now overall we see ai as a big enabler for the future especially for someone with our data on scale we're building the momentum with dedicated ai tech squads who are co-working with various teams out in the business and there's a lot more coming in the pipeline here now all of that existing activity and innovation has to uh... uh... happen as we maintain a very very high quadruple nine site uptime and investing class app score so the main diagram here it's fuzzy on purpose because it actually contains the real details of a ton of different products that we're working on uh... but each colored bar here is one of the one hundred thirty features in the in the first half of the year more coming of course just calling out a few examples consumers they now benefit from clear access to UPC information great pickup of that list sharing collaboration tools material property information enhancements enhanced filtering moving journey assistant tools in my right move saving return on mortgage applications and plenty more within core we rolled out enhanced multi-branch company reports which really drives better agency network management and visibility We're also enhancing partners' ability to self-serve on various tasks, like user management in Rightmove Plus, which actually just crossed 50% uptake just from starting it last year. We've enabled self-serve amendments to the creative assets for campaigns that partners put on our site. And that's another area we are now experimenting with AI tooling. In the strategic growth areas, as I said, they're all delivering really well against our operational milestones. and for the enhanced former tenancy manager within lead to keys we've seen a good pickup and we also have now the first iteration of the commercial homepage so we continue the strategic model push digitizing more of this industry there is absolutely more to do we're delivering effective and truly useful tools not gimmicks for our partners and for ourselves the cloud migration and unified data platform also continue to progress there really are non-trivial undertakings but they will provide a super strong foundation once we get through them for many more years of even faster innovation than today and within the consumer domain i'll just give you an example of what we would call connected innovation we think about this logically we are building increasingly beyond the fine segment sometimes within the fine segment but also beyond it at the same time and we try to really reinforce consumer utility and consumer frequency with our platform so within the domain of affordability if you remember it's the second step in our strategic model below find We launched tap or track a property last year and we're already seeing roughly 80,000 new tracks being done every single month Thanks to our large reach So a user will get an online valuation estimation range on an owned or other properties of interest Out of all the properties that we have historic valuations on the user can then opt to get valuation updates regularly from us and so we see a super high 80 email engagement for trackers and nine percent of the track properties are soon coming to market on rightmove which again is another indication from a vendor perspective so we get enriched data signals from the sears home mounting audiences particularly and that contains value to our agent partners beyond a raw lead click You can see in the middle of this slide how right now also credential is credential is its agents as a local and ultimate experts in valuation. And then logically, we're trying to think, okay, what's the next building block here. So we innovate on the back of tap. And renovation calculator is a good example. It's an upcoming consumer product launching the second half, potentially already in q3. And we use a ton of our own data and external planning data to create this Now, the fact is that 20% of owner-occupiers out there, they carry out a meaningful extension of their home at some point. And for them, it's extremely important to feel assured that that gets reflected in property evaluation. So it's a good example of how we segment more granularly. We build products for those segments. And naturally, this particular tool can be used for someone considering to sell down the road. get a better valuation for it but equally someone who's looking to buy and then want to upgrade which is often the case and the third element of this connected innovation module or way of looking at it within the affordability domain is how both tap and the renovation calculator really gets reinforced by the expanding suite of mortgage products so today mortgage in principle is mostly for purchase which is obviously connected to for example valuation interest But in the future, we'll also start building out and offer remortgages and loan extensions for green and retrofit purposes. So again, three building blocks that will really drive and actually enforce each other over time. So we drive functionality, utility, frequency. We are building a larger digital ecosystem connected to the platform, and we are becoming increasingly really a consumer moving assistant when it comes to home transactions. That opens up more value for agent partners. And of course, it also increased monetization opportunities for us as a company. So next, a number of you have asked about our approach to consumer marketing, and I'm sure we'll get back to the topic of marketing. So just a few thoughts and to outline how we think about this. We approach the consumer of today with a big advantage, which is important. Rightmove is a much loved brand. It's been reinforced for almost 25 years of investment and credentials. and of course all the data and product driven platform benefits we operate so we have a comprehensive marketing platform we call it believe it and it builds on those advantages it evolves them logically and very much in sync with how we grow our product features in the business overall there are four key pillars from left we continue to build the brand leadership is date it's salient we play international set pieces like the euros paralympics on tv etc We recently actually used our brand leadership during the election to call for a change in approach to housing in the UK. And it culminated in an exclusive interview answer from both Sunak and Starmer on their respective housing policies. Societal leaders respond to leadership brands, and we have one. In two and three, we then credentialize and expand our utility to homeowners at both personal and national aggregate levels. Our scale enables us to segment the consumer base with increasing efficiency, allowing us to personalize both products and communications, an example of which I showed on the previous slide. We combine this really with industry expertise and so much historic and ongoing real streaming data. And through news, regular reports, and moving stories, in the first half we were seen over 4 million times out in the press. finally in four we are indeed thinking about the future building for the next 25 years engaging the next generation through raft of activities showing up where they digitally live on channels like youtube pinterest tick tock and on tick tock we're actually one of the fastest growing brands overall in the uk now just touching on one of our strategic growth areas we've seen that 29 of our rental services operation which is now built out with the lead to key suite And as a reminder, why do we do this? Because it's a little bit of a different product than we've had in the past. Well, rentals, as mentioned, is over half of the moving events in the UK market. More and more people actually rent due to affordability or choice. Probably about there are two times more renters in the UK market compared to 15, 20 years ago. so our advertising revenue in lettings on the listing side really had stalled and we're now bringing new and promising solutions against that opportunity to be able to grow it into the future lead to keys is the uk's only digital end-to-end connected solution starting at the very top of the consumer funnel leveraging an asset that we have very important and that's of course a core strength we monetize all those aspects of this leads key partners on the lettings subscriptions for access to the platform paying an additional subscription for leave the keys including a set level of free references and then they can pay for variable references on top of that more revenues as a broker us being a broker here for rent guarantee insurance tenant insurance tenant utilities such as broadband and media and we continue to actually develop right now we're experimenting with a couple of more consumer ancillary services There is a substantial total revenue pool of hundreds of millions of pounds as we look at this entire category, and that's illustrated in the bottom right graph. But also, we are very, very early stage in terms of this opportunity, but it will be an exciting journey, and we'll try to build it to its full potential over years to come. bottom left you can see early but clear evidence of beneficial outcomes for our partners really really strong scaling and uptake from a year-year perspective across several very important metrics the top chart right just shows how lead to keys revenues are grown on a monthly basis since we launched not that long ago and i think what's notable here is that we're bringing in new listings partners to the right from the platform and we're not there before as well seeing a good uptake among our existing base of letting partners speaking of partners and another piece of marketing also important to to remember the position that we have out there the building the success together program so for long we've offered all of our partners significant resources consultation expertise etc as part of the right news description in 2023 alone we ran 64 000 business partner meetings we participated and shared insights in 30 or so national conferences and we had over 44,000 people registered on the online training hub. Now, there's a spectrum of free tools and data insights on Rightmove Plus and also within that Rightmove Hub. Now, most of our partners, specifically the vast majority, which are SMEs, they are still very, very busy. So the sheer scale sometimes of our support data, different tools, it can be overwhelming. So we started thinking about this and really consulting with partners already in the spring of 2023. This is not a recent construct on how we could actually improve how we deliver business value to them. So the result is this program, which we launched in Q2 this year contains these four pillars of insight, training, control, and advocacy. And it's a little bit like I described with our consumer marketing. It's a comprehensive, strategic, well-researched program. Of course, we'll continue to evolve it. We don't throw stupendous data points as a selling act. We throw serious effort into bettering our services with partners. Much of it is continuing to optimize what we've done before, but now we're taking it to the next level with this program. And conclusion. I want to say two things here if we can roll forward coming okay there we go well yep nope you need to move on a little bit further always I'm gonna have to look at slides there we go so just some reflections of our business at a higher level Sorry, I know it's gone lopsided. Well, there we go. I think it is a summary. You've heard it all before. But I think it's hopefully also been clear in this presentation and through the results. We have an optimistic outlook on our business. We're aware, though, that the market, as of now, needs further pickup. and it will at any point in time you know always have its certain set of dynamics and again different speeds in different parts of the market now we're convinced that there's a clear line of sight opportunity for virtual digital transformation we are starting that from a fantastic and resilient platform so i also want to extend a thank you to the hard-working right movers team delivering against this opportunity and finally the overall case We operate in an attractive large liquid market UK property. We've successfully built this central position for over 25 years. We have a uniquely powerful brand with 96% awareness among home movers. It's an incredibly powerful position. We're convinced that we can strengthen our already powerful network effects. We're data driven and the B2B model obviously at the core enables us to drive the business forward in all market conditions basically. We actually do think, even with 24 years in the back, that we're just in the beginning of a new journey that we set out eight months ago, and we're attacking that through our strategic model that we have outlined previously. We are not complacent. We're restless to innovate. We are scaling the core business. We are building new adjacencies. We are connecting them logically to the platform. And our aim is to deliver double-digit growth over the medium term. So thank you for listening. And with that, we'll go over to questions. And Ben will have to emcee that.

Great. Shall we start with Joe and then move across?

excellent thank you very much it's Joe Barnett-Lam from UBS three from me so firstly just with regards to the evolution of competition I think I'm right in saying that your share of time spent year to date is about the same as last year your retention of agents is what seemed to be the highest you've had for a long time and in underlying terms i think your agency arpa growth excluding lettings and in pound terms is about the highest it's been as well is all of that correct and um is there anything you did or saw that was different in h1 as a result of competition that's question one question two um it feels a little bit like you're sort of caught between cycles we're starting to see the the property market warm up but not enough that we see new agent formation or new home developers breaking ground on new developments is there anything more that needs to happen for those things to happen or is it literally just a matter of time and then thirdly at the cmd i think you guided to 120 to 130 pounds of arpa in 2025 and 2026. now obviously the shape of the business has changed a little bit with the push into the lettings that you've had thus far this year does that guidance still hold is there anything you can say about that guidance that would be helpful thank you

right yep I'll start with the first two yes I can confirm what you said you know positions generally remain very intact across all different metrics and we try to lay them out actually what we what we did here we did on purpose we laid out three different sources of information as I mentioned right and the the the one that we've used in the past is and still comscore shows exactly the position being in a super intact position and that's an important aspect it is not the only aspect but we know it takes interest you know generally so we're happy about that we continue to be very focused on executing our plans with an ITORS obviously always near term but certainly also long term and you know from a competitive perspective I really don't think there's that much additional new news or or commentary and you know it's it's sort of in the public with the state team of the UK and what kind of activities they're undertaking and we continue to plow along with our business and and accelerated at the same time secondly the cycle point yes I think that's that's a good way of phrasing a joke between cycles a little bit or being in somewhat of a transitionary period. So the catch-up effect on the resale side with listings volumes, pent-up demand, et cetera, positive sentiment and statements on agent pipelines has absolutely built pretty solidly throughout the year. Again, with the delay until cash flow comes in. While on new homes, that's again slower for longer, right? It there are bigger tankers to turn around. There's a little bit more Uncertainty in terms of how that sort of whole cost versus sales and therefore benefits, you know come around for them but again generally you can read that You know, they they definitely start calling out the development numbers to go up but in a cautious way, right and ASPs are pretty firm sales ratios are firm to even starting to go up a little bit discount levels they're also quite firm on and they're clearly now not just relying right but really hoping and working with the government to make sure something happens out of the ambition statements But it does take time, right? So this is not all of a sudden it's going to explode in the second half of 2024. Absolutely not the case. But calls for optimism. I think the pain largely or to a larger extent is in the sort of mid and tail end of the developers. And again, some of that is reflected in these numbers as well, right? Same thing there. It's not easy to pin down exactly when all the positivism will come back, but it will at some point.

I'd just add two data points on competition as well. I mean, we've particularly zoomed in on consumer engagement and agent retention. But also, if you look at the strength of upgrades to optimise our edge and our ability in this first half to have put through our normal pattern of price increases, Those two also really go to emphasise the value that agents see in the products and in the subscription and there has been absolutely no change to behaviour there. If anything, we're ahead on the optimiser edge curve and we can certainly talk a bit more about that. On the CMD mix guidance and revenue guidance, clearly this mix shift in the first half of this year has changed the route to the revenue numbers. so we absolutely stand behind the the revenue numbers that we set out at the cmd but the way that we'll get to them as things stand right now is with higher higher customer numbers on the agency side and slightly lower arpa ultimately leading to the same revenue numbers i think the believers always for revenue drivers are our customer numbers in arpa um the the lettings the the volume of lettings ads you know has diluted arpa if we were to see a mix shift back towards the more traditional mix, you would see a pickup in ARPA and therefore I think all roads will lead to the same revenue number.

Perfect, thank you. Just one follow-up if I can. With regards to the coming soon tag for new home, what's the lead time between that and seeing the new home developers sign up the developments in full?

a good question i actually don't know process precise answer so i don't know if you have that bent or someone in the team otherwise we'll follow up but thank you andrew here from barclays sorry taking the mic um i've got three as well if that's okay the first one just to clarify the arpa guidance for this year 75 to 85 it was a bit higher than that in the first half what are the drivers of it slowing in the second half or is it just you being a bit conservative that's the first one the second one is just to follow up on joe's question on the 25 guidance so i fully understand the mixed dynamics but just to be clear you are still guiding to slightly accelerating revenue growth compared to the 24 range and the 70 margin on a clean basis to be clear um i mean the third question is on the supply side of the market coming back to competition obviously because I gave some numbers this week in terms of where they feel on the market is in terms of branch numbers. Is that kind of consistent with your tracking? And where do you think on the market is relative to Zoopla? What do you think is happening on the supply side of the market? Thanks. Got it.

I can start with three, Alison, and we can pick up on the others. So I think as with some other numbers, that are not coming from a third-party or independent source it's hard to comment on it and therefore I won't specifically the activity of course that they're undertaking is trying to build a supply but what we focus on is very high principles around the methodology obviously being quite granular and having a lot of history specifically in this market and those are numbers that we report I think the further question on the two other brands, again, not really for us to comment specifically on those two. You'll see commentary out in the news, and I think that's readable for everybody and also up for interpretation, I would say.

So on the first question on ARPA, the reduction in the second half is largely just year-on-year comps. on the new home site in particular where growth in 2023 was so strong and continued into the second half of 23 so it is just simply that movement from one year to the next in terms of the mixed dynamics and 25 so we're not giving out specific 2025 guidance today but having said that everything that I just said about the mix and how we get to the CMD revenue numbers and those revenue projections we continue to stand behind so I would point to the fact that this year we put through the same level of agency price increases as we typically do that has all gone very well the strength of optimizer edge upgrades combined with the withdrawal of the optimizer 2020 package those will all continue to drive acceleration in agency arpa particularly among the resale and dual agents into 2025 and then on the lettings arpa side despite the fact that their advertising subscription arpa is lower than the resale agents they are absolutely our pipeline customers for lead to keys and we will continue to drive adoption of lead to keys into that base so all pointing to good arpa growth into next year

Just to follow up on that, the medium term ambition of getting the group into double digit growth has clearly not changed.

but you're not being specific in terms of whether we're thinking 25 is going to slow show a slight acceleration or not in terms of that trajectory to not today we're not setting out 2025 guidance today we will do later in the year but there's still six months of the year left to play out and you know movement in the underlying market so you'll hear from us later in the year with regard to specifics for next year but everything i just said about standing behind the cmd growth numbers remains okay thanks

I have two questions in terms of investments in product growth I think last time you said you're investing in 200 headcount three-fourth in product growth so just want to understand where we are in the investment process and in terms of margin obviously can you just give us basically a step up in R&D sorry step up in capitalized expense in the cash flow so just want to understand how you are accounting for in terms of incremental product R&D it is expense or capitalized and basically what is your thought process there first question Secondly, in terms of, again, coming back to optimizer edge, could you give a sense of where we are in terms of product spending? Are you seeing, basically, with higher discounts from the third, number three portal in the UK, are you seeing some more product incremental spend that right now at this stage or probably just want to understand the dynamics there? Thank you.

Sure. Go ahead. So on headcount, we were completely on track with where we expected and wanted to be. We added about 100 heads in the first half, we'll probably do the same in the second half. As always with us, costs tend to be weighted towards the second half of the year, which is why you will see that slight dip in margin from 72 to 70 for the full year. yes you're right rahul we have slightly increased the capitalization of headcount as we invest in in behind the strategic growth areas it's not particularly material we're going from 2023 where we capitalized costs in relation to our new erp system and we capitalized the product development team for mortgages

we are now so that that was a total of about two million pounds that too has now become eight for the full year and you've seen about four and a half of that in the first half and on the the last point around optimizer edge so we obviously launched this last year that's also when we started talking about it we've given some updates on where we um we're tracking on it and and we're giving the the normal sort of initial 12 month period getting to roughly a thousand now given the numbers that we're at we're obviously seeing very good pace with this package on the back of what it contains interest and benefits to customers so we're quite pleased with that acceleration not at least in a market that is yes recovering but still has some ways to go and so forth and of course at least theoretically or potentially a new competitive dynamic but importantly That has not made any changes to the success actually more than the historical success in terms of rolling out the top end package and the usual contract renewal Phasing that faces that we do throughout the year that Allison mentioned before so we're quite pleased with that and And obviously the the work on product generally continues, right? We still are still we see an over 50% spend on product and versus core listings, right? As we said before, that balance tilts a little bit from time to time, but that's where we are. It's a good product uptake overall.

And in terms of, I think last time you guided to slightly greater than 1,200 uptake for edge. Are you still on track? Or do you think that you could exceed that guidance or just in terms of that number of 1,200 uptakes?

Yeah. So what we said when we launched the package was that our target was to have 1,200 agents on it by the end of 24. At the end of June, we already have 1,400 agents subscribing to it. And as I said, we will aim to withdraw the optimizer 2020 product. So ultimately, over time, our target will be to have 3,500 to 4,000 agents on that top five.

Okay. Jeff?

Thank you, Jessica Park from Peelhunts. I've just got three, please. When you set out your kind of outlook, financial outlook during Capital Markets Day, had you anticipated kind of some of the efficiencies that you're getting from AI? I guess where I'm getting at is, you know, looking at your need for developers and personnel and into the next couple of years, do we have potential upside because you're getting more efficiency out of your people? um the second question is that um we're seeing a lot of consolidation you know in the in the agency market and do you expect any impact from that and more so on kind of pricing and various things and then the final question is just on the letting partners um which have come on to lead for keys and just onto the platform um you know i'm assuming your penetration rate is very pretty high so i mean do you expect

a good number of is there more of these letting partners which can come onto the platform in the near term yep i can start okay yeah with ai yes um so the short answer is no we have not made any precise estimates of the benefits of ai nor in a business opportunity to consumers or to partners nor from an internal you know speed of delivery or efficiency um there's always an ongoing productivity uh measurement and and of course improvements ai does hold quite a lot of promise within that uh we're exploring that that's how we're thinking about it now we're business casing it out but it's too too soon to say or communicate any any specific sort of impact of it right uh remember Lots of interest in it. We're on it right now, but it's still in its early sort of in terms of full potential. Second one on consolidation. So consolidation obviously can have an impact of some rate alignment across our partner base. And and that's that there's a difference in a way or it might be worth commenting slightly differently on agency Versus new homes, right? So an agency It's always been going going on to some extent it will continue to go on to some extent right and in in some ways It's another reason for us to continue to Segment further our products cater to very large medium and and small in the agents as well, which is exactly what we're doing and On the new home side, just because that might become a question specifically anyway, I think there are about three processes ongoing right now. Two of them expecting some kind of answer here early August, right? And the general piece there, again, there might be some alignments between contracts going in different directions. But I think what's important to remember is that, first of all, as we said, there's weakness in the long tail of developers, right? And between the developer stopping to build altogether or even go out of business, it's much better to see them become part of something else. Somehow their business will continue, right? And among some of these larger potential M&As, one of the positive outcomes of it will be that obviously they're going to, generally speaking, be stronger, have a bigger balance sheet. And when they actually look at a site, They now say, hey, we have one or two brands already in this site. Now we can complement that with one or even two other brands on that same site. That provides real scale in terms of the production of that development. We have them as partners per brand and development. right so if that makes them a stronger business and therefore release more developments and build more you know fantastic uh you know for our business so i i think that's uh one aspect to to to actually keep in mind

And then on the lettings question, Jess, so we have just under 2,800 lettings-only branches on the site right now, of which less than 300 are lead-to-keys partners as things stand. And you've seen in the CMD materials the way that we intend to grow the volume of lead-to-keys take-up. I think it's also really gratifying to see lettings-only agents come to the advertising side of the site just in order to access the lead to keys software i think previously you know we would not have had those lettings agents as customers so of course we welcome them and and we will probably see more of that but within the existing lettings only base clearly there's lots of opportunity to go after there with with lead to keys as well but i i was i guess i was referring more to the fact that

the lettings agents which have come to the advertising side um are there more of the you know a lot more of these lettings only agents which aren't on right move which can come on um assume because your penetration is already quite high in the market already yeah the one well there are a couple of things so there are there are small lettings agents who historically have not

been on Rightmove or indeed been on any of the portals they have low stock and they're quite happy to just advertise in their local area so we will and are seeing some of those come onto the site now and then the other thing that's going on is a slight shift in the demand and supply imbalance and that was really what was the blockage when the only product that we had to offer was the advertising product those agents if they're getting 30 35 leads per available rental property it's a cost to them to have people managing those leads they didn't need more leads from any portal and so they didn't advertise with the portal that demand and supply imbalance is now reducing somewhat as I said it's still there but it it's quite dramatically less than it had been. So there is more of a need for leads and of course for lead qualification, which is exactly what lead to keys is. Great. Do you want to come forward to Gareth?

Morning, Gareth Davis, Torjie Newmis. Two on the strategic initiative. So on commercial, you said you sort of, it sounds like you sorted the front end now in terms of standalone commercial. is that an important catalyst in terms of getting the sales team out more aggressively looking to win new customers and how much kind of product is still to be built to get to where you want to be to sort of have have that properly saleable product and relating to that are you seeing any difference in terms of what the competition is doing in that market um and then really similar question on mortgages really just can you give us a little more color on sort of the investment and the product that you've got there now and and sort of how far through that journey we are before you get to that end product that you can get out properly into the market with yeah i i uh i'll start so on commercial

um it's great and we call it a v1 there's actually a a new landing page being built as we speak and and launched um it is not a massive catalyst for sales doing something different we have a sales team operating uh they're growing the business but of course uh they're a tad more proud being able to talk about the landing page that we have today and it's not just a landing page yes that there's there's some visuals around it but it's it's obviously has some better division segmentation and logic behind it so it's good that we have it it's a necessary piece to to to be full the series let's say and show that we stand behind our investment in this area and and help partners but you know sales work continues as as before and then you know there's more work underneath going on in terms of data feeds the data that we can take in how we obviously then do display that back up on the site catering as usual to okay what are the specific needs of commercial real estate partners in the quite different segments in that industry right which we literally didn't do anything of before and that's a little bit more of the sophisticated build that happens underneath. All of those pieces combined as we release them will obviously put the product in a much better space and from that we will grow volumes and we can penetrate the segments deeper and of course look at also our own spectrum of products and different pricing components and packages which is quite basic today. So therein lies the opportunity. But as we said, 24, 25, basically to be seen as investment years from that perspective while we continue to track along with sales out in the market. And on mortgages, yes, I mean, look, it's a small base, but we're phenomenally happy with the pace. all that right now we I think mentioned here that we've just added the second broker agents to the mix continue to work with our our main lending partner and it's simply two things happening from our perspective we are constantly but in a very logical way adding exposure to our users and where we think it makes sense but there's a lot of interest in this area in spite of or maybe even you know help by the external environment doesn't matter so that's one thing that is going on just to drive exposure awareness and users you know love the fact that we have this product right remember the MIP itself is obviously not tied to collateral so it's a great way to get an indication of where am I or where am I and my spouse it's now with the volume starting to build very interesting information also from us not not just the direct commercial opportunity from these leads for us but the enriched data signal again someone who has an approval for 400,000 mortgage for example that's a more interesting lead more qualified lead for one of our partners than someone simply clicking on the website right so with that volume comes comes more opportunity obviously and then generally speaking the other part of it is just optimization of of the product itself um how we gather data we run quite a lot of ml ml and now you know starting to do gen ai as well on this connected up to our different marketing programs and so forth one example and it was mentioned here of just one of those optimizations but this is how we build online consumer products is to save and return function. So while we have made the form filling quite more efficient than many other sources or places you do it, it's still quite a lengthy process. And particularly if you're a joint applicant, there's a number of complementary information that you need to do. And before, that was a little bit like, oh, I don't have this now. I can't get a hold of the information. People drop out. And now we basically put some additional security around this and and functionalities so that people can partially do this and then come back So it becomes almost a self-nurtured way of completing the form and the more completions the more chances obviously at the Certificates and actual lending happening down the road. So again just an example, right but that work continues and it's along those lines that we continue to to do the job and um and and specifically we're also now looking at the remortgage product right and how we try to connect that back up to some of the other things that we do at right move that obviously opens up a um a new pretty meaningful category of tam but it's quite different than purchase mortgage as well so early days all right uh will packer from bmp power bricks and um three questions for me please firstly um the traffic

statistics are impressive um but is it fair to characterize the current situation as the phony war where your new competitor hasn't really started to spend at scale is that is that fair um and so we've got a bit of time to wait for that to come through um secondly could you help us think through how the cyclical recovery in the uk property market will impact your estate agency business is the right way to think of it that on a bit of a lag we get a bit more agent formation and a bit more product uptake and it's more of a 2025 story and then finally you're a bit further along with mortgages now and you sound pretty excited there's a big graveyard in classified land and mortgages in australia europe the us where things have gone less well what do you think is different is it the technology is a bit better the uk market structure execution just help us frame it for you why you're excited in the context of some of those challenges elsewhere thank you okay i can take the first one there you go to the second um so yes it is great given all the calamity and noise and some of the uh

uh... walking in the orchard of data chair picking as i call it out there uh... during the spring uh... but uh... the the uh... we simply don't know exactly what what you know plans are in the future we assume that uh... more marketing will be done in different types of marketing including you know brand advertising uh... and and that's that's a premise on which we operate and as we said before uh... obviously monitor a lot of metrics um we now monitor some additional metrics because of that um and uh we we we sort of we have our marketing plan it's very strategic very connected to what we do uh We are thinking in ways of, okay, there might be dynamics from time to time, specific ways of doing it, specific messages to be out with, and spend levels, right, that might change around a little bit in the future. But we're very glad to see that our position stands very strong, in spite of quite some spend, actually, to date, albeit in a purely digital format.

On the cyclical recovery piece, Wilf, we haven't seen much new agent formation in the first half you know if you think about the drivers of it transaction numbers is obviously a very big part of that and i mean really when we say it's been a tentative recovery in the first half we do mean it and that combines with the seven months from listing to transaction close which is a long time for a new agent to have to market themselves and try to win mandates with no revenue coming in so that would discourage formation i mean you would expect to see a bit more if transaction numbers pick up but they have not picked up sufficiently for us to see anything meaningful there really at all right and on mortgages um i don't know graveyard might be a harsh word will

Um, but you're, you're, you're obviously, uh, uh, you know, deeply aware and knowledgeable about many situations around the world. But as we said before, for sure, our approach seems to be a little bit different to, to some of the others in that we are going with, um, a pretty strong principle about only digital, uh, right now focused on, on actually building awareness for this product with, um, within the right new context, but sticking to a digital model. And I think, uh, in many other cases, it's been the case of acquiring mortgage broker start working with them, which operates in a very different economics. And I can't really comment on on, you know, whether that's, you know, good, bad, somewhere in between, obviously, this digitization, progress in those as well, right. But we've taken, you know, this principle, and we believe in that one. And that's the one that we nurture. we're also you know not saying that this business will all of a sudden become half a right move right we think it's it's a phenomenal monetization opportunity that shouldn't be untouched by us and it's a very very good complement to quite a few other things that we do and it is a more direct or different monetization opportunity right then the rest of the business those are the components that I like and I I think, again, the optionality over some years in terms of exactly how we monetize this between the different partners on the platform can look different as we penetrate it. I think new technologies like GenAI will impact this industry as one of lots of information gathering, lots of process steps. and manual intervention, right? So that's another angle that we might keep in mind given who we are purely focused on technology. Thanks.

Thank you. It's Giles Thorne from Jefferies. The first question is back on lead to keys. And I wanted to get a bit of color about what happened basically between March and the 10th of May because lead to keys is a product. First phase rollout was over a year ago. You obviously had all the learnings from that that fed into your capital markets day and your 2024, 2028 guidance. And then we get to the 10th of May and suddenly there's been, I don't know, accelerated uptake in customers. So something happened on the commercial front in those two months. A bit of color there. Secondly, back on mortgages from 35,000 feet down into the very specifics. If I remember correctly, the traffic for the agent broker panel was being directed only after a failed MIP. I'd be interested to see how that's evolved and what feedback you've had from your agent partners. And then lastly, two bits of M&A after a bit of a drought. Some comments on what's in your M&A pipeline right now.

Sorry. yeah great I'm so I'm sorry if you want to start with Emily please go ahead to well 11 small acquisition and one even smaller investment so so home views I think you you know what it is agent reviews eight million pounds I mean it it was a very good compliment to our rental operators offering and you know we have now focused on integrating that and integrating that business and we'll continue to grow it from there was slightly different it was us taking a stake alongside three of the biggest mortgage lenders into a business whose technology is aimed at helping to digitize the sales process you know we back it we think that of the operators in that space they have the best technology but it is very very early days and the sales journey is so fragmented with so many different parties involved between local authorities banks, convencing lawyers the land registry agents buyers and sellers that this will take quite a bit of time. So this is a long-term investment for us and obviously a very small stake which we have now written down. We said in the presentation we will look at investments that could help us to go faster on something we're already doing. or to bring capability into the business that we don't have but that does point to a small and bolt on um and there's there's nothing you know that we're that we are uh when you when you say a pipeline it's a there's a lot of air in that pipe and and obviously all of the plans that we have set out are based on organic growth they don't rely on m&a

okay uh so these keys um so the uh the the product uh which is lead to keys which is really a suite of different steps um had been worked on for quite a while um and we got it readied during mid last year we had it out as usual in a pathfinding mode with real partners of potential partners uh including You know, very important feedback that we perhaps needed to adjust before we go into official launch. Obviously, also figuring out, you know, pricing and packaging model of it. As you know, it's actually a subscription model under which an agent gets X number of free references per month, et cetera, et cetera. The official launch really started only in Q4, not even in the very beginning of Q4 last year. so uh the pickup has simply actually think the graph actually shows a fairly steady curve uh uh given they're still relatively small scale uh they're you know the the the bars might might look a little bit different in height but there's nothing you know particular the more recent period uh and and remember it's it's still at small levels uh but it's quite exciting right gets very very positive feedback from agents um And as much of that great feedback and efficiency it provides, and we also showed you some of these stats in terms of year-year comparisons on, for example, inquiries. it is still not uh you know it's not like so like the best thing since sliced bread meaning it probably is but it's still a process of reaching out explaining this uh you know getting people to try as we said before agents might sit with a point or a part of the value chain solution with something else right but the exciting thing here is we're connecting it back up to Again, building success together, obviously trade marketing, addressing both our own base as well as new lifting partners. So it's now on a continuous rollout track, and we're quite happy about that. Second one on mortgages. So, yes, just to confirm that the current broker setup is on the decline of the main MIP. with the main lender partner. The feedback from our first partner and more recently the second one has been very strong. It's very collaborative. It's a new way for them to get leads. It's quite rich in information. which is very positive but that's also where it needs to get connected to you know their process i mean these partners are generally speaking tech savvy amongst agent brokers and that's a reason for the partnership right so we're learning and the volumes are building and that's quite exciting exactly as i said again how how this setup between you know lead generation and various ways of advertising against that opportunity that might evolve in the future but this is what we have right now

ability into conversion for nationwide of a of a mip lead uh we do but that's part of our commercial relationship with them so we're we're not talking about that um hey it's pete from morgan stanley uh three questions first one on 3d modeled listings and what is the consumer appeal in the uk and if there is, what would be the cost to produce these types of listings? You probably know where the question is coming from. So cost our acquisition of Matterport. Secondly, you showed this graph on inquiries per rental listing. So whether you wanna talk about rentals or for sale, but on a inquiry per listing basis, how do you compare against Zoopla and on the market? And then lastly, about your product packages, actually both for agents and new homes. So what do you see as the optimal balance? Because right now you're approaching quite high penetration levels on top package, which kind of then makes it like a hygiene factor. So would it make sense to at some point have the top package that is actually priced in a way that it's not going to penetrate 60% of agents? Thanks.

Okay. I'll start with one for sure. So on the 3D listings or virtual tours and the known still pending acquisition, in the UK, there are virtual tours on less than a single digit percent of all listings. It's been very stable for a long time. it typically gets to be on more premium valued properties because it does cost significantly more to set it up like that it is not showing radically different sort of interest or traffic metrics in other ways right it's it's absolutely a useful tool to some extent but let's remember that those are the penetration levels there are also quite a few other providers of that technology and ways to do it. Some agents even have some of that capability in-house. The absolutely most important thing is really good detailed information, generally speaking, and photos. So across those three. Now, could this evolve over time? Yes, but I think the promise of virtual tours or video showing has been around for a long time. I might have mentioned this before. I spent 15 years in online travel. We debated this a lot. We tested a lot. We invested quite a bit in it. And somehow, photos in these kind of classifieds or comparison or property seems to be quite prevalent. But it's one of those, again, where we're testing, we're pathfinding with partners. We'll see where that goes in the future, right? But there's nothing particular to report on it. It's a very similar story across most of Europe. We talked to all of our peers, let's say a little bit specifically on this topic, given the acquisition that was announced, and everyone is seeing quite a similar situation. I'm going to take the second one.

sure I mean we we put the chart in mostly to emphasize the continuity of those outcomes for for agents and for landlords relative to our competitors and I think the point is really that the stats have not particularly moved if anything particularly in terms of vendor mandates one on our platform you were talking about nine ten times the number of vendor mandates one for agents from rightmove relative to in this case zuplo but also to on the market you know we start with the 86% or so of engagement and we know there is lots of browsing and just property surfing at that level but the reason it's important is of course it funnels down into the really high quality high propensity to move buyers sellers and renters and that is where really the quality of the leads from rightmove you know shows off relative to the other platforms so outcomes are the thing to focus on the primary input into those outcomes is the quality of the leads but you know we are talking high single digits multiples whether that's vendor mandates one lender mandates one and sales and lettings outcomes and you know we will really continue to push that message because that is where our very big consumer advantage leads our customers and then on the third point on the distribution of packages yeah you know we're we're at a bit of a funny distribution curve at the moment we have if you take the combined optimizer packages so edge 20 and and 15 we're over we're about 35 percent of agents are on that that top level and meanwhile of course down at the lower end at the essential and essential extra there's about 47-48% of agents are down at the bottom and so the middle package the enhanced level is being squeezed having the ideal distribution is you'd have a pretty even spread across all of those packages we would certainly like to see more agents using our products which would mean cross oh is it okay which would mean less than less than 50 the fire alarm is about to be tested all right thanks okay um you know so so our focus is as much on getting those agents to engage with products and moving them up the package curve we're broadly happy with the the number of agents on the top pack

attention please attention please please leave the building immediately please leave the building immediately by the nearest exit do not use the lips

Maybe to chime in a bit on the new home side, right? Because that's obviously where we do have a higher above 50% penetration. And that's totally fine. Because the amount of listings coming from new homes is such a small portion of overall listings, right? So generally speaking, you got to remember from a consumer perspective, consumer eyeball perspective, competes with all the listings, right? It's not just within that category. So we're happy with that level and it could be higher as well should that be the case.

We've got time for one more from Sean if that's okay and then we'll wrap it up there.

Morning, everybody. Sean Keely from Pamir Librem for the first time. I'd like to ask sort of one question, but it might be in three parts, but I hope that's all right. Mostly sort of tacking close to M&A again. So if I think about the investment in co-adjutes, you're in a little over 7% of that right now. Attention, please. Attention, please. I'll let this happen first. The power alarm test is now complete.

Please respond to all future power alarms.

So you're in a little bit over 7% of that right now. Have you got any visibility on whether or not you might need to follow an investment and would you be willing to make that investment and is 7% the right ownership number for you or would you look to increase that stake over time is sort of number one. Secondly, Johan, I think you've commented previously that Rightmove looks to make acquisitions or investments in companies which can benefit from its scale. Are there Are there specific doors you're pushing on in support of CoaJuice? I'd just like to hear a little bit about the strategy you're operating there. And then thirdly, if I can ask about the costs of integration of, I guess, homebrews at the moment and if there are any for CoaJuice in terms of the product yet, and roughly how much that's all spend is and any comments you can make on that as well.

I can take the first two. so we're minority investor in code youth we think is an extremely interesting potential technology platform for the future connects very well with with our strategy and our ambition to to make the business or the industry more more effective and directly support agents you know cash flow operations but it's early stage we are joined by which is extremely exciting three of the largest lenders in the country in this investment. There were also minority investors in it, with one of them being the lead. So that's where we are right now. There's obviously a lot of good thinking where this is going to go and quite a lot of action starting to build as well in terms of what these different parties do together with Co-Adjute, right? So no further comment really on sort of ownership. That's where we are right now. The second question, which I probably started to allude to, generally speaking, Well, first, generally speaking, yes, there's a lot of prop techs out there. And hypothetically, what some of them will need at some point, like all companies, is obviously scale of some kind, right? And that's one potential angle for us. Again, though, that doesn't mean that, oh, all of a sudden, there's so many because there are a lot of small prop techs out there, right? Alison alluded to our general policy, and that absolutely holds true. It's just one of the reasons why it could be interesting. uh... and uh... uh... you know that kind of corporation around uh... around specific case we'd be told you it is exactly what happened what's happening so one of our most senior at the members uh... is in the coverage of board uh... and we're laying out plans for uh... how we obviously can collaborate and now we need can support them right but uh... they they are working as a standalone company and we're minority investor uh... we we actually learned from this ourselves, informs our pathfinding of where we want to take this domain, let's say, and obviously vice versa as well.

And then on HomeViews, Sean, we took off about 700,000 in relation to HomeViews in the first half. So that was a mix of payroll of the members of the HomeViews team that we retained and integration costs of their platform onto ours.

thank you all great thank you appreciate you coming enjoy