British real estate portal OnTheMarket.com has continued its improved financial results in the six months to July 2021 announcing higher revenue, operating profit and average revenue per advertiser (ARPA), according to a statement released to the city today.
The majority agent-owned company posted a 46% year-on-year increase in revenue of £14.9 million ($20.3 million U.S.). ARPA increased from £124 per month per agent customer to £188 but actual agent numbers were down 5% because agents on long-term free contracts had to move to paying contracts.
However, since January 31 2021, the number of agency branches listing went up 5% and new homes developments listed increased by 6%. The number of branches listed under paying contracts increased by 3% in H12022, to 10,190 as at 31 July, 2021. Agents using OnTheMarket.com as their only property listings portal represents 968 branches.
Adjusting the results to take into account the £1.8 million cost of agent Covid-19 support, revenue increased by 24% and ARPA by 28%.
Adjusted operating profit increased by 163% to £2.1 million, even though overheads went up by 105% to £4.5 million for marketing and by 28% for staff costs to £4.7 million. Profit after tax was £0.5 million. It was reduced by a non-recurring cost linked to OnTheMarket’s acquisition of Glanty Ltd, repayment of government grants and higher non-cash share-based agent recruitment charges.
Website traffic increased by 36% from 117 million per month to 159 million and average monthly leads per advertiser went up by 26% from 105 to 132.
The company balance sheet strengthened with cash generated from operating activities of £2.6 million, leaving £9.9 million of cash at period end.
According to the report, the company says it has made “significant progress” in its strategy to build a differentiated, technology-enabled property business.
Looking ahead, the board said it expected revenue for H22022 to be slightly ahead of expectations as demand for U.K. residential properties has remained very high. During the next six months the company plans to roll out a refreshed brand and website.
“I am delighted to report a strong financial performance, operational growth and real progress with our strategic objective of building a differentiated, tech-enabled property business,” said OTM CEO Jason Tebb.
“Since joining OnTheMarket I have spoken with hundreds of agents. I am encouraged that they are not only pleased we are listening, but also that the changes we have made to our proposition have been well received.
“The first stage of our transition is complete and we see this as the start of a mutually beneficial journey. We will continue to innovate and are actively exploring further new customer product and service offerings.”