Rightmove shares react to latest profit forecast
The portal's share price dipped at end of last week despite a predicted profit rise of up to 5%.
Rightmove’s share price fell slightly despite a trading update confirming a forecasted profit increase of up to 5% this year.
The portal released the update for the first quarter last week predicting a profit increase of 3% to 5%, while revenue is expected to climb between 8% and 10% this year.
Price dips
But its share price dipped 0.8% on Friday, and has fallen more than 17% this year so far.
The share price dropped more than 10% on one day in April, before regaining some lost ground. The drop followed the news that a £1.5billion legal action had been filed against the portal with the Competition Appeal Tribunal.
Business warning
Shares plummeted in November following a trading update which revealed it is planning to spend £60million over three years on AI and product development that would impact profits.
Independent agents have warned they will go out of business if Rightmove ploughs ahead with proposed fee increases of up to 18% this year.
The portal launched a new marketing campaign last week centred on a series of adverts running across TV, Video on Demand and YouTube.
Place retained
It avoided the embarrassment of dropping out of the prestigious FTSE 100 in March despite share price falls.
Relegation from the top 100 firms on the London Stock Exchange looked likely when it was included in a list of possible drop-outs. But unlike airline EasyJet, Rightmove retained its place when the final cut was made.
