Rightmove plc

H1 2026 group revenue increased 7% versus H1 2025. Underlying EPS grew 6%. Agency revenue rose 9% to GBP 164 million, New Homes revenue rose 2% to GBP 38 million, Commercial revenue rose 13% to GBP 8.4 million, mortgages revenue fell GBP 1.1 million to GBP 3.4 million, and Rental Services revenue increased 67%. Underlying operating costs increased GBP 10 million year on year, resulting in a 69% underlying operating profit margin. Capital return increased 11% in H1, including a GBP 90 million buyback completed yesterday. For 2026, management now guides revenue growth to 6% to 8%, underlying operating profit growth to 3% to 5%, development numbers down 6% to 10% by year-end, Agency membership up 1% to 2%, exceptionals of GBP 4 million to GBP 7 million, and at least 5% EPS growth. It also expects over GBP 330 million of share buybacks over the next 12 months and over GBP 400 million total shareholder distributions, alongside an interim dividend of 4.17p.

Johan Svanstrom emphasized that the company is executing well despite a tougher New Homes backdrop, with solid core Agency growth, strong retention, and broad product adoption. He repeatedly framed AI and the tech platform as strategic differentiators, highlighting that applications are now 100% cloud-enabled, releases are up more than 35%, and early Ask Rightmove results are encouraging. His tone was confident and long-term focused, with repeated references to building an agentic-powered property marketplace and creating more value for partners and consumers.

Ruaridh Hook focused on the revenue mix, noting that Agency growth was ARPA-led, New Homes was held back by fewer developments, and the SGAs were still on track for 20% to 30% growth in 2026. He highlighted that ARPA increased GBP 117 to GBP 1,726, operating costs rose GBP 10 million, and margins remained strong at 69%. On capital allocation, he said Rightmove is targeting a modest level of debt, entered a GBP 200 million revolving credit facility, and expects that at full drawdown this would be about 0.5x leverage. He also reiterated the new return plan: over GBP 330 million of buybacks plus the dividend, taking expected 12-month shareholder distributions to over GBP 400 million.

Analysts pressed management on when New Homes might recover, and Hook said July and August were less weak than Q2 but still down, with no clear timing for a rebound; he stressed that when the market turns, it can recover quickly and Rightmove is positioning products to benefit. Questions on SGAs focused on why second-half growth should accelerate; Hook pointed to Commercial chargeable products, continued customer acquisition, and a better mortgage comparison, while saying Rental Services should stay strong and H2 SGA growth should be more than double H1. Analysts also asked about AI token costs, the litigation exceptionals, leverage, M&A, competition, and possible consumer monetization; management said AI costs are budgeted and actively managed, exceptionals are guided at GBP 4 million to GBP 7 million this year, M&A is not a priority beyond selective opportunism, competition is stable, and consumer search experiences will remain free though advanced services may be monetized over time.