Rightmove, the leading property marketplace in the U.K., posted revenue of £180 million ($231 million U.S.) in H1 2023, up 10.3% year on year (y-o-y) — its best first-half performance since 2018.

Operating profit climbed by 7% y-o-y to £130 million, while underlying operating profit rose by 8.8% y-o-y to £133 million, according to the company’s financial reporting.

Rightmove attributed its “strong financial performance” to “resilient and growing customer demand for our products and services … despite the backdrop of higher mortgage rates and the increased cost of living.”

Customers “increased their use of our digital products and continued to upgrade their packages,” it added.

Average revenue per advertiser (ARPA) expanded by 9.4% y-o-y to £1,411 per month. The company also reported the highest-ever growth rate in new-homes ARPA growth (23% or £330) and agency ARPA growth of 6% or £79, “both driven by increased product and package purchases and customer contract renewals.”

Membership rose by 1% during the 12 months to June 2023.

Time on site averaged 1.4 billion minutes per month over the period, down from 1.5 billion in the year-earlier period, which Rightmove blamed on 2023’s slower property market. However, it noted that this was still 27% above pre-pandemic levels, citing a figure of 1.1 billion for June 2019.

Market share also ticked upwards, to 86% in H1 2023 from 85% in H1 2022, it noted.

“Disciplined cost management remains a key feature of our business model,” said Rightmove in a presentation to investors. It noted that the underlying operating margin for the reporting period was 74% and that it was was expecting a full-year operating margin of 73%, in line with previous guidance.

The company added that the board was confident it would deliver in line with its previous expectations for the full year.

“Our performance against the backdrop of a challenging interest rate environment demonstrates yet again that Rightmove isn’t materially impacted by the property cycle,” said CEO Johan Svanstrom.

“From here, our aim is to expand our platform, our products and our data — for both customers and consumers — to further digitize the sector, both in our core business and in newer growth areas. We also want to play an active role in facilitating the much-needed green transition of the real estate market, leveraging our vast pool of data and insight to do so.”

Founded in 2000, Rightmove initially offered free listings, with charging introduced in 2002. It floated on the London Stock Exchange in 2006 and is now a FTSE 100 company with a market capitalization of around £5 billion.

Source: Rightmove – Half Year Results 2023 Presentation

Print Friendly, PDF & Email

Related Articles