Rightmove trading update – renews focus on lettings and new homes

Rightmove told City investors today that its expectations for revenue and profit for the year remained unchanged – despite enhanced competition from competitor portals.

The Neg revealed in March how the portal had shown an uptick in both revenue and profit when it announced its full year results but also hinted at a potential decline in customer numbers for the upcoming year.

TRADING UPDATE

That seems to have yet materialised as Rightmove said in a trading update this morning ahead of its Annual General Meeting that sales agreed between January and April 2024 are 17% higher than the same period last year, with both sellers and buyers now increasingly looking to transact. It said it continued to anticipate total sales transactions of 1.1 million in 2024.

It continued to anticipate total sales transactions of 1.1 million in 2024.”

Higher mortgage rates, it said, continued to stretch affordability for the average buyer, while the market was operating at different speeds with lengthy completion times and an average of five months between an offer being accepted and completion.

Estate agency membership increased by around 250 since its 2023 year end through its retention policies with a net growth of 170 in lettings-only branch count.

Lead to Keys, Rightmove’s advertising, enquiry management and tenancy progression system, onboarded 70 new partners and over 170 existing partners added the product to their subscription.

OPTIMISER EDGE

And independent agent subscriptions to Optimiser Edge, the tool that flags potential sellers just before they are likely to be considering instructing an agent, breached the 700 mark.

New Homes also saw over 90 new developments added to its entry-level Access package, which is tailored specifically to housing associations.

FULL-YEAR FORECAST UNCHANGED

Despite expecting a different mix of customer numbers it said full year revenue guidance was unchanged at +7-9% on 2023 with full year underlying operating margin guidance also unchanged at 70%.

It also said it anticipated some small growth in customer – not agent – numbers by up to 2%.

We are pleased to see our existing and new partners recognising the value that we can deliver together.”

The Neg revealed last month how Rightmove, alongside Lloyds Banking Group, Nationwide and NatWest, had made a £10 million investment into Coadjute to help the blockchain network revolutionise the homebuying process.

BETTER YEAR

Johan Svanstrom, Rightmove Chief Executive, says: “Overall, we continue to expect a better year for the UK property market in 2024 than in 2023.

“Within that, we see different dynamics across the many segments that we serve, with particular strength in resales.

“We are pleased to see our existing and new partners recognising the value that we can deliver together.

“We have a growing, innovative portfolio of digital services, exemplified by strong take-up of Optimiser Edge and an increase in lettings branches and affordable new homes developments.

“We remain confident in achieving a year of good financial and strategic progress and are focused on driving further long-term platform growth.”