Rightmove profits climb despite property downturn

Property website Rightmove has revealed it grew profits and revenues last year even as the property downturn gathered pace, as advertisers increasingly focus their attentions online.

The group said revenues had grown by 31% in 2008 to £74 million while underlying operating profit rose by 33% to £41 million.

As a result Rightmove has raised its dividend by 25% compared to 2007, with a full year dividend of 10p, up from 8p.

The company managed to do so even as house prices and activity in the sector fell sharply. Rightmove said it estimated the total number of housing transactions in 2008 halved compared to normal conditions.

Ed Williams, the managing director of Rightmove, said while times were tough in the property market, Rightmove was benefiting as its strategy continued to pay off.

'It is becoming clearer and clearer that those serious about selling are doing more and more on Rightmove,' he said.

The group also said it was confident going forward that it could 'maintain cash flow at or ahead of 2007 levels'.

Rightmove said although it had seen advertising come under pressure, particularly in the second half of the year, it had seen the number of estate agents coming onto its site increasing, and outweighing the number of agents exiting the site as they dropped out of the market.

The rise in revenues and profits comes even as house prices declined by double figures in 2008 and look set to do so again this year. Rightmove itself said in its December house price index that it was expecting prices to fall by a further 10% on average in 2009.

Rightmove's results confirm the growing use of online businesses in the face of declines seen on the high street. Recently fashion retailer ASOS said its profits had leaped as sales at the online group climbed.