Rightmove profit takes off in soaring marketMake Text Bigger
Year on year profit before tax rose 31 per cent to £59m with total revenue increasing by 20% to £80m as Rightmove benefit from the rising housing market
This is partly due to an increase of over 25% in users to 22 million for the first half of the year, and the average revenue per customer increased by 13% with most choosing to purchase additional advertising packages. The number of Estate agents advertising on Rightmove is now 19,000 an increase of 3%. Page impressions on are up 13% to 8.1 billion from 7.2 billion.
Rightmove’s shares were up 4% to £22.65 following the profit announcement. However, share prices had previously fallen 20% since the Bank of England announced it would use new measures to cool the housing market in February.
ONS (Office for National Statistics) data shows average UK house prices are up 10.5% in the last year skewed by a London market that has increased by as much as 20%.
From next January Rightmove will face new competition from a start up property portal called “OnTheMarket” which is being backed by some of the Uk’s biggest estate agency chains.
Rightmove CEO, Nick McKittric said “the prospect of potential future competition from OntheMarket had been a factor in Rightmove’s recent share price decline.”
He confirmed they would be using new technology such as instant alerts to maintain a competitive advantage as 40% of its views come from mobile devices and there has been 7 million downloads of its app.
McKittric said “it’s about standing out in the biggest market place and winning new business to sell more properties.”
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