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OnTheMarket revenue exceeds expectations after strong second half

Challenger’s real estate website OnTheMarket sees 2021 revenues exceed expectations as demand persists

  • Full year ended January 31 revenue ‘slightly higher’ than expected
  • The company also expects to make full-year profits, rather than just break even
  • But OnTheMarket shares are down 1.5% in morning trading



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Challenger real estate website On the market has told investors that full-year earnings will exceed expectations thanks to strong demand from home seekers during the second half.

The broker’s website, looking to break Rightmove’s dominance, also expects to make profits in both the half-year and full-year, rather than just break even as it forecast in October.

It said revenues for the full year to the end of January will “be slightly ahead of market expectations”, while adjusted operating profit will be “at least” £2.5m for the full year.

OnTheMarket praised 'strong' performance and said it achieved 'a lot' in 2021

OnTheMarket praised ‘strong’ performance and said it achieved ‘a lot’ in 2021

The profit improvement is due to continued cost savings and a shift to capitalizing development expenditures rather than debiting them to the income statement.

The group left its outlook for the current year unchanged and said it looked to the future with ‘confidence’.

Shares in the AIM-listed company soared higher on the opening, before losing those gains to trade 1.5 percent on Friday at 10:30 a.m. to 117.16 pence.

OnTheMarket chief executive, Jason Tebb, said: “We are pleased to report strong performance and continued operational progress in line with our goal of building a technical real estate business.

“We have achieved a lot in 2021, culminating in the launch of our new website and branding which has been well received by real estate agents and serious property seekers.

“There’s a lot more to come and we look forward to making it happen in the coming year.”

The company turned a profit for the first time last year despite a shutdown of the property market at the start of the lockdown, posting an after-tax profit of £2.7m and turnover of £23m.

OnTheMarket was founded seven years ago by a consortium of brokers, including Knight Frank and Savills, to compete with the two dominant online real estate portal companies Zoopla and Rightmove.

Legal proceedings were launched against the company two years later, alleging that the ‘another portal rule’, which prevented brokers from using two competing websites at the same time, was affecting competition.

However, it won the case, raising £50 million from its London junior market listing in December to expand its technology, marketing and sales operations.

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