Rightmove’s revenue growth has continued to surpass expectations as the portal’s annual average revenue per advertiser (ARPA) is boosted by listings of new homes developments.
FTSE 100-listed Rightmove’s improved revenues come despite a slowdown in the UK housing market, as higher interest rates and the cost of living crisis weigh on mortgage affordability and availability.
The group said it now expects ARPA – a key metric for Rightmove – would come in at between £112 and £116 for the full year, up from previous forecast of between £103 and £105.
This is expected to drive revenue growth of between 8 per cent and 10 per cent.
Rightmove increased its forecast for annual average revenue per advertiser (ARPA) – a key metric for the firm – following increased listings by new homes developers
The UK’s largest real estate property portal company said in a statement: ‘The majority of the (ARPA) growth has been driven by new homes developers, who have extended their usage of our Native Search Adverts and Advanced Development Listing products to sell their developments.’
The London-listed company also said that its full year outlook remained at least in line with its previous forecast, with both estate agent subscriptions and new homes development listings stable in the last four months or so.
Rightmove shares rose 6.25 per cent to 541p in Monday morning trading.
Johan Svanstrom, CEO of Rightmove, said: ‘The momentum that we reported in July has continued through the third quarter and beyond.
‘The strength of our performance against an uncertain market backdrop demonstrates the strength of the UK consumer affinity to our platform, the value of the established network effect of our business model, the depth and richness of our consumer data, and the value that our customers place in our products to build their businesses.
‘It also illustrates the resilience of our business model in all phases of the property market cycle.’
Last month, US commercial real estate information group CoStar acquired OnTheMarket in a £99million deal.
Following the deal, shares in Rightmove fell by more than 12 per cent following warnings from analysts at Citi who said the move could spell a tougher trading environment for the UK market leader.
But Peel Hunt analysts on Monday said Rightmove’s most recent update was ‘reassuring’ and that ‘concerns over the competitive landscape from CoStar acquiring OnTheMarket are overdone’.
Svanstrom added: ‘We continue to look to the future with confidence and remain focused on the delivery of our strategic plans, both in our core business and in strategic growth areas. We look forward to providing more detail at this afternoon’s investor day about our plans to capitalise on the significant growth opportunities ahead.’
