Rightmove plc

right now we officially start so good morning and welcome to the presentation of right moves results for 2025 I'm joined today by Rory hook our CFO sitting here we'll be here in a second first a couple of takeaways our 2025 performance showed strong continued delivery in a competitive market and we will step up the pace further in 26 we continue to deliver compelling value from and across our platform to both core and other partners We have a very strong position with consumers, partners and our data. And with our AI capability, we're enhancing all of that even further. We continue to deliver our proposition. We're executing our strategy. We're excited about all future opportunities to further digitize the UK property sector. Now, we delivered some really strong KPIs for last year. Revenue growth of 9% was supported by ARPA and membership increases in the core business, as well as contribution from growth in our strategic growth areas. Underlying operating profit growth of 9% reflects our revenue growth and ongoing investments in people, technology, and product delivery. Underlying EPS grew by 11%, and we increased capital returned by 21%. And finally, time on site at 16.8 billion minutes was the second highest on record, only beaten by the COVID exceptional burst in 21. Said differently, the equivalent of 32,000 years of time was spent on the Rightmove platform last year. We made some strong operational progress as well, right across the platform last year. So from the left, over 85% of that large audience came through direct and organic traffic, and we grew our app users by a strong 11%. We continue to evolve to meet consumers wherever they are, and we doubled our engagement numbers in social media channels. We saw strong penetration of our top packages in estate agency and new homes. as well as a very fast start for our latest and market unique estate agency on product online agent valuation our agency retention was the second highest in over 10 years and third party surveys showed record positive sentiment scores for rightmove we continued our strategic and operational progress and growth in the strategic growth areas and all of this was delivered through rightmove's platform and leading data we did over 6 000 tech releases And after multi year build, we now have 31 live strategic AI projects at year end. It's an increase of four on our November update, and we tripled the number of data models used to process our proprietary data in the platform. This strong stance is down to purposeful work and investments over the most recent years and has a strong trajectory for future product delivery. And finally, on people, we have a world class engaged and energized team. 89% of our team described Rightmove as a great place to work. So, my sincere thanks to all hard and smart working Rightmovers for delivering our results of last year. It is a competitive market out there, but our position is stable and it's strong. And that's because we keep delivering great value for both consumers and partners. We remain the leading place for consumers looking to make a move in UK property. And while facing various competitive dynamics over time, we have for years averaged over 70% share of portal time on similar web and over 80% on com score. In December 25, we were at 75% and 89% respectively. That love and trust from consumers drives frequency leads and of course a lot of data signals. And those enable us to drive strong outcomes and value for our over 19,000 UK estate agents and new homes partners. Now I want to touch on that value point a bit. We operate in a competitive market and we always gauge how we can do even better. So we commission third-party surveys quarterly with over 1,600 independent agents contributing responses. The top left chart here shows that the total positive sentiment scores from those surveys. There are two big takeaways. One, just in absolute terms, we've seen a positive trend and a new record high actually by the end of last year. Market conditions and general sentiment out there often impacts our responses. So in the context of the weaker Q4 in the property market through the UK budget hesitance, that's actually an excellent result. And two, in relative terms, you can see a 1.7 times differential between Rightmove and the main portal competitors. Now, we ask for feedback at branch frontline, branch management level, and company management levels. And we also go deep on several subcategories. you can see that we lead across subcategories across business results value and inclusive services at the bottom of this chart so we rate really well in what's a competitive market yet we of course always look for opportunities to improve and for all partners part of the value and those strong scores come from our building success together program which we launched in early 2024. We invest resource in supporting our partners business objectives. We also help them to understand what happens in the market and what Rightmove can bring. And as noted top right this comes in many forms and a true scale. Dedicated account management in the field are Rightmove plus and Rightmove hub tools which are both available to all partners regardless of package levels. We're sponsoring and collaborating with several leading industry organizations across the state agency, new homes and rental operators. We continue to invest in and progress these two right move plus as an example is the business management tool for partners last year alone had new features and enhancements introduced over 25 times. And our partners engagement value from right to plus is clear 28 million sessions recorded in the year. So in summary, we deliver right move outcomes and value. from a broad range of solutions packages products data insight training dedicated servicing through our account management and support teams and we measure these results now let's move to the property and markets for a bit within sales top left here it was really a year or two halves h1 was strong building on 2024 and with successive bank of england rate calls rate cuts H2 was weaker year to year due to the fears around the late autumn budget. If you take them together 2025 as a whole, so 10% more completions versus 24. And that was in line with long term long term averages. Looking at the year ahead, top right, there's been a clear post budget bounce back in available stock, which is now at a 10 year high. This is called slower price growth, which is of course supportive for buyers in the market. Now these elevated levels of resale stock is less helpful for new homes developers. So on the bottom right here shows new homes as a proportion of total for sales stock on our site. And with approved planning action applications at an all time low, we don't expect the material recovery of the development numbers in the market in H1 this year. With the rentals bottom left, increased supply and reduced demand continues to improve the more extreme imbalance seen in previous years and which we have talked about. So the 2025 average of 10 inquirers per available property is still above the pre-COVID average of 6 to 7, though. And across all these segments, of course, mortgage rates is a key driver, and it continues on a steady downward trajectory. At the 31st of January, the average five-year fixed rate was 4.35%. That's 55 bps lower than a year earlier, and that's per Right News Daily Mortgage Tracker. So with that, let me pass over to Rory for more detail on our financials.

Thank you, Johan. Good morning, everyone. I'm delighted to present our financial results for 2025. Overall revenue grew 9% compared to 2024 with strong growth across the business. Starting with agency row one in the table revenues increased by 9% to 305 million. If you look at the chart on the right, the light blue bars show that this growth was driven primarily by ARPA led gains, which continue to be mainly discretionary. An additional contribution of 6 million came from increased agency membership numbers. And moving down the table to new homes, revenues here also rose 9% to 75 million. This was in spite of continued headwinds in the new homes and market with new builds coming to the market remaining subdued. You can see the impact of this in the chart with a dark green showing revenue growth contribution of less than 1 million from higher average membership increasing by 1%. The ARPA growth contribution remains strong, contributing 5 million. At the bottom of the table, our strategic growth areas delivered another strong performance. Revenue increased by 5.7 million, up 25% to 29.1 million. Commercial revenues grew 13% to 15.3 million as we continue to focus on customer acquisition with membership increasing 29% year on year. Mortgages revenue was up almost 50% to 6.8 million. This was weighted towards the first half of the year, mainly reflecting the timing of interest rate changes and hesitancy in the property market around the budget impacting activity in H2. rental services made up of our lead to keys product, referencing and ancillary services. So revenues up 35% driven by strong growth across the lead to keys products. For completeness, the non SGA parts of other revenues being data services, overseas and third party advertising grew 2% year on year. revenues outside the core represented 11% of group revenue up from 10% last year. compared to december 2024 across agency and new homes membership increased by 225 up one percent to 19 272 this increase was due to growth in agent agency membership which increased by 261 up two percent on december 2024 this was due to high agency retention of 90 continued growth in agent formation as well as current partners opening new branches Within new homes, we saw a year-on-year decline of 36 developments, down 1% at year-end. You can see in the bottom right chart a decrease of traditional developments in orange of 113, offset by an increase in housing associations in teal of 77. New developments coming on site remain low. We are not seeing a pickup in build rates and have seen traditional developments fall to their lowest level since January 2018. We do not see this changing in H1, but continue to be optimistic that developers will be encouraged to build more by H2 and in future years. Overall ARPA increased by £97 to £1,621. 60% of ARPA growth was product-led. with similar percentage in both agency and new homes as our partners chose to upgrade or purchase incremental product. The remaining 40% of ARPA growth came from contract renewals, which all proceeded as expected. Given partner engagement with our strong suite of value adding products, we expect a similar split this year. In terms of product ARPA growth, we saw upgrades in agency come from multiple sources. ranging from upgrades through the package ladder from lower threshold packages to new joiners joining straight into the top package you can see this in the pie chart for optimizer edge joiners in the middle of this slide the migration of the old top package optimizer 2020 has gone well and will be fully retired by h1 joiners and new homes to the advanced package shown top right similarly came from upgrades and new joiners We had a new top package, Ascend, launch in May, with 818, 28% of developments live at the end of the year. We expect a similar split of upgrades going straight into this top package, but flag that the advanced package remains highly attractive, especially for smaller developers. So expect to still see good inbound into advanced next year. taking these two pie charts together you can see that key for both new homes and agency is that we do not rely on a single source of joiners to the top package and expect penetration to continue to increase in both the other driver of arpa grove comes from incremental product purchase you can see from the charts at the bottom for both estate agency and new homes arpa increases at the initial upgrade in month one this is the column marked upgrade Then we see ARPA increase across the first year and the second year. In both estate agency and new homes, you can see that ARPA keeps growing far past the initial upgrade. This happens as partners choose to purchase more of the same products or add additional products to their package mix. We've shown the previous top package in agency optimizer 2020 and a new homes advanced to illustrate how we have seen this before. and that the initial months of the new top packages in both agency and new homes are performing as we expect and have seen previously we know that continuing to provide great value and superior outcomes to our partners through continually evolving and new products sees them choose to engage further also at the end of last year we added online agent valuation exclusive to optimizer edge partners and with an average price of 170 pounds providing both another reason to upgrade to the top package and also encouraging existing partners to increase their current product spend. Moving on to costs underlying operating costs increased by 11 million year on year resulting in a 70% underlying margin as we invested with discipline and within our cost framework. The main driver of costs remains our investment in people, up 4.6 million or 7%. The other main cost component was our continued investment across technology, with an increase of 4 million. In the year there was 9 million of internal labour capitalisation, with total capex at 10 million. As guided in November, we expect to see an increase in labour capitalisation in 2026, with total capex to be around 16 million, less than 4% of revenue. In 2026, we will see investment as outlined last November, which will mainly be in people. We anticipate over 100 joining before the end of the year in roles across data, product and engineering. A few of these roles will be through our new flexible resource provider, which will provide us with the flexibility of headcount over the investment phase. other material increase in cost will be the ai powered operations area with work on the back office initial phase already commencing all in post capitalization this incremental investment is expected to total around 12 million in 2026 as guided in november we remain highly cash generative with a cash conversion ratio of 107 percent of operating profit As we continue to grow the strong cash generation of our business, this leaves us well placed to return surplus cash to shareholders. This year, a total of 220 million was returned to shareholders, 141 million via share buybacks and 79 million via dividends, an increase of 21% year on year. We reduced our share count by 2%, meaning over 40% of issued shares have now been repurchased and returned 6% of our year-end market capitalization in the year. This morning, we announced a final dividend of 6.59p, bringing the total dividend to 10.64p. There will also be a share buyback program of 90 million until the 31st of July. This will be funded by the growth in earnings, but also reducing cash reserves from December's 43 million to around 20 million by half year, which we see is sufficient to manage the working capital of the business going forward. Our capital allocation policy remains prioritize investment in the business, evaluate value accretive M&A and return all surplus cash to shareholders via progressive dividends linked to earnings and buy back thereafter. turning to financial guidance this remains the same as set out in november looking at the right hand of this slide revenue growth in 2026 will be between eight and ten percent we expect h1 growth to be lower than the full year 2026 growth with a higher growth percentage in h2 this is due to the high comparator in h1 last year particularly in mortgages which saw significant activity in h1 2025 due to the stamp duty changes and falling interest rates and in new homes due to the full year impact of 36 developments fewer developments contributing a negative revenue comparator of around one and a half million for core we anticipate that membership will grow around one percent and we lifted ARPA growth to between £110 to £120. At an overall level for the SGAs, we anticipate growth to be around 20% to 30% range. Underlying operating profit will grow by 3% to 5%, resulting in an underlying operating margin no lower than 67%. With no change to our longer-term target set out in November, we anticipate underlying operating profit growth in later years to be at similar levels to revenue growth as we still see no reason for a margin lower than 67%. That concludes the financials. I'll now hand you back to Johan.

All right.