GCIRightmove on track for FY24 targets, expects stronger revenue growth in FY25 amid market optimism
() , the UK's largest property portal, issued a trading update for the 4 months from July 1 to October 31, 2024.
Rightmove reported higher levels of optimism within the sector vs the same period last year, as its property market stats showed a continuation of positive trends reported at the interim results. Namely, house price growth remained positive and mortgage rates kept stable, with a favourable outlook for further interest rate cuts.
Moreover, transaction flow continued to improve, supporting business growth for Rightmove's estate agency partners. While rental price growth moderated, average enquiries per available property was still a healthy 15. Positive sentiment was also helped by recently announced government policy support.
Rightmove said it was in line to meet full-year market expectations for profits and revenue, and it tightened some of its previously issued guidance estimates.
Specifically, the online property portal now expects revenue of approx. £390m (within its previous guidance of 7-9% growth); adjusted margin guidance stayed at 70%; and membership growth is now expected to be 1% (still within its previous guidance of up to 2%). The lower-end membership growth projection was attributed to a slower-than-expected recovery in new homes builds.
More on the bright side, average revenue per advertiser (ARPA) is now projected to grow by +£85-£95, which is c. £1.4k higher than previous guidance. Lead generation remained strong, with 20% more leads sent to resale and dual partners during the period. Rightmove projected a "modest acceleration" in revenue growth in FY25, and that it was "looking ahead with confidence".
Additionally, within New Homes said it was beginning to see more developments on-site, expecting ongoing growth in 2025, with ARPA remaining strong as developers continued choose the online property portal for their marketing needs. Rightmove also said its Mortgages, Commercial Property, and Rental Services divisions continued to perform in line with expectations.
Johan Svanstrom, CEO of Rightmove, commenting: "This has been another period of strong progress for Rightmove, and it's pleasing to see our product development and sales delivery generating increased uptake from consumers and partners. As a result, we remain confident in achieving meaningful strategic and financial growth in 2024."
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