Rightmove cancels dividend payment in face of Covid-19 uncertainties

Just week after its apology to the industry for ‘getting it wrong’ over payment deferrals, and a slashing of its rates by 75%,  the pressures on Rightmove in the face of the Covid-19 downturn became evident last Friday when it announced the cancellation of its final dividend payment for the year 2019.

Rightmove’s statement to the City said:

“The strength of our balance sheet and business model has enabled the Board to act quickly to support our customers, as announced on 20 March, and we are taking appropriate measures to contain our costs and reinforce our financial position.

Given the uncertainties caused by the impact of COVID-19, the Board considers it prudent to cancel the proposed final dividend payment of 4.4p per share (£38.3m in total) for the year ended 31 December 2019.  The dividend declaration will therefore be withdrawn from the AGM business on 4 May 2020. The Board recognises the importance of the dividend to our shareholders and will consider the timing of the reinstatement of the share buyback programme and the quantum of any interim dividend for 2020 in due course.

In this period of unprecedented uncertainty, we are unable to quantify the impact of COVID-19 on our financial and trading performance at this stage. Accordingly, the Group is suspending all existing financial guidance for 2020. The Board is confident that the Company has the financial capacity to withstand this challenging period.”

Rightmove shares lost 3.9% on the day to close at 470.10p.

sprift end of
x

Email the story to a friend

14 Comments

  1. Property Ear

    Shareholders better get used to it. It is going to get worse and it won’t get better.

    Report
  2. Ostrich17

    £ 38 million sitting in the bank and their running costs covered by agents paying 25% of fees over the next  four months.

    Also they have suspended the systematic buying of their own shares – saving a further approx. £ 2 million per week.

    They have enough cash to make RM FREE to all for the next few months !!

    Report
  3. International

    I think they got the message last week !

    Report
  4. J1

    If we cannot show people around houses what is the point of paying Rightmove to advertise them ?

    In similar circumstances 15 years ago would you have continued to put houses in the newspaper every week?

    Report
    1. PeeBee

      J1

      “If we cannot show people around houses what is the point of paying Rightmove to advertise them ?”

      So – don’t pay Rightmove to advertise them – simple as.  Dump the portal and remove your stock today.

      Report
  5. WiltsAgent

    If you can’t do viewings and valuations for the next 3 months, maybe longer, why spend anything on RM or any other portal?. Best to keep the cash in your own account until this is all over.

    Report
  6. Property Pundit

    Hand your notice in by tomorrow to be free of them by 1st May.

     

    cancellations@rightmove.co.uk

    Report
    1. JEL

      Did it this morning….

      Report
  7. Mothers Ruin

    Wow. So – considering the amount of money they have in the bank they’re now shafting both their users and their shareholders.

    Report
    1. SoggyBottom

      Much better to offer membership for free, and continue to pay out the full dividend.  Oh, wait…

      Report
  8. Murray Lee

    I think/hope this might have taught them a lesson. Check 1st before acting. The share price took the 1st hit as they announced the pull back from deferral to the 75% discount.. That was 1 large 12 bore shot gun they used to shoot themselves in the foot !

    Report
    1. JEL

      Hi Murray… Good work with what you did, but what needs checking. At the moment they are not worth the discounted rate they are offering, even that is a wasted £400, and when there is some semblance of normality they will try it on again and again and again until they’ve recouped the discounts….

      Report
    2. J1

      The share price has rebounded this week – one of very few risers in a rapidly falling stock market……………

      Report
  9. GPL

     

    It’s odd …..the FTSE Players think Rightmove just had a Wobble?

    ……I see a CRACK driven right down through Rightmove’s foundations, it’s no Wobble.

    Rightmove can engage with its Investors, Share Play Bunnies & Analysts, it can spin as many positive stories as it can through 3rd Party Commentators to shore up the “We’re alright” image ……..however, the people that it should engage with? The Agents, it’s Subscribers …….it has already turned it’s back.

    The writing is on the wall …..Rightmove think “Sorry” was enough?

    “Say No to Rightmove?” ……barely a pulse.

    This has only just begun……..

     

     

    Report
X

You must be logged in to report this comment!

Leave a reply

If you want to create a user account so you can log in, click here

More top news stories

OPEN LETTER: Agents are not only putting themselves at risk, they are also putting their staff at risk

Continue Reading ...

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.