Rightmove aims to underpin its financial position by cutting costs ahead of the portals’ announcement to cut estate agent listing fees by 75%
Shareholders of Rightmove have been left reeling this morning after the portal announced a decision to cancel its proposed final dividend payment of 4.4p per share for 2019.
The company has had £1.37 Billion wiped off its value so far during the Coronavirus pandemic, although its share price has rallied this week.
This morning’s announcement, although costing its shareholders dearly, will save the company £38 million and will be the first dividend that the City’s most reliable and lucrative shares has not paid since they were launched in 2006.
“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,” Rightmove says.
“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.”