Rightmove cost-cutting helps '09 numbers

26th Feb 2010 07:19

Cost-cutting and an increase in average online spending helped property website Rightmove improve underlying profit in 2009.Underlying operating profit for the 12 months to 31 December rose 2% to £41.9m on revenue down 6% to £69.4m. Pre-tax profit fell 1% to £37.8m from £38.2m.Revenues for the second half of 2009 were 7% higher than in the first half and, by the end of 2009, monthly revenues had moved back toward their pre-crash peak.Costs were slashed by 17% to £27.5m as the company axed 16% of its admin staff during the period.Broker Numis has upgraded full-year 2010 profit estimate to £52m from £50m and 2011 forecasts rise to £60m from £55m.Panmure Gordon is also impressed with the results, but says to some extent, the market has already discounted better than expected trading following a recent update. There'll be a final dividend of 7p a share, giving a total payout for the year of 10p, the same as in 2008.