Rightmove has revealed flatlining membership despite the housing boom suggesting that its ability to sign up significant numbers of new agents has plateaued – but says it has ‘emerged stronger from 2020’.
At the end of its first half year trading, the portal had 130 additional estate agents but 211 fewer new homes developments.
It now has a grand total of 19,116 paying customers including 16,052 agency branches and 3,064 new homes developments.
The portal says it has new product launches planned for later this year which, if previous form is to be followed, will be primarily for lettings agents and tenants.
Better news for investors is that its average revenue per advertiser (ARPA) increased by 63% to £1,163 compared to the same period laste year as more agents bought bolt-ons such as its Optimiser 2020 package.
Some 16% of agents now use this package, up from 9% last year.
These developments, alongside a booming housing market, helped boost its revenues by 58% to £149.9 million and operating profit by 86% to £114.9, although these figures have been exaggerated by the controversial discounts that it was forced to give agents last year during the worst months of the Covid lockdowns.
The only weak spots in the business are its New Homes operation, which has seen developers eschew site marketing as demand has seen properties snapped up at site gates, and its overseas property, which has been impacted by the various Covid travel bans over the past year, its results reveal.
“Our customers expect our platform to deliver the best exposure for their brand, extremely effective advertising, and to help them to grow their businesses.” says CEO Peter Brooks-Johnson (main pic).
“The strong take-up of our premium Optimiser 2020 package shows agents’ continued belief in the Rightmove platform, as they invest in our digital products and innovative algorithms to help them to identify more opportunities to succeed.”