OnTheMarket has revealed how many of its member agents are paying to use its service after its huge push to recruit over 7,000 agents since launching onto the London Stock Exchange last year.
The company says it has converted 1,000 agents to paying customers since the IPO which, when added to the existing 5,500 paying customers it had prior to the share launch, means 52% of its member agents are being billed for its service at an average monthly fee of £337.
OnTheMarket also says within its latest results that it is considering copying Zoopla and may soon acquire one or more property technology companies and is also preparing to roll out its product to new homes developers.
As it reported earlier this week the portal now has 650,000 listings and in May attracted 25.4 million visits to its website and claims to have overtaken Zoopla for leads at 102 a month on average.
But its financials remains fragile. Average revenue per agent dropped from £198 to £130 during the 12 months to its year end on January 31st, reflecting its ‘freebie’ strategy of getting agents on board. Group revenue increased by only £600,000 to £14.2 million.
OnTheMarket’s huge expenditure on marketing is also revealed. Last year it spent £14.9 million on advertising alone, helping drive operating loss from £3.9 million to £14.5 million.
“We are established as one of the leading portals and our progress to date has given us confidence that we can continue to build on this strong start and develop a market-leading, agent-backed alternative to Rightmove and Zoopla,” says CEO Ian Springett (left).
“We are benefitting from growing agent support and are strongly positioned to continue our growth in agent offices listing and in agent firms converting to becoming investors alongside long-term paying contracts.