Rightmove updates targeting as property portal’s advertising revenue rises

Rightmove has raised its annual guidance on the back of improving advertising revenue, as it noted “increased optimism” among its partners.

Britain’s largest property portal now forecasts its average revenue per advertiser (ARPA) will rise to between £85 and £95, up from £1,431 last year, compared to previous estimates of £75 to £85.

It said the upgrade reflected the strong migration of estate and sales agents to its premium Optimiser Edge package, which is now used by more than 3,000 branches.

The London-based company also forecasts revenue of around £390 million and an adjusted underlying operating margin of 70 per cent.

However, Rightmove believes total membership numbers will only increase by 1 per cent, less than its target of 2 per cent, due to a “slower than expected” rebound in new housing developments.

The Bank of England raised UK interest rates on 14 consecutive occasions between the end of 2021 and the summer of 2023 in an effort to reduce inflation.

Although this reduced house building levels and property prices, Rightmove has continued to post strong results.

It noted “increased optimism among our partners ahead of 2025”, supported by positive house price growth, stable mortgage rates and a “favourable outlook” for further rate cuts by the Bank of England.

Britain’s central bank cut the base rate by 0.25 percentage point to 4.75 percent on Thursday, its second reduction this year.

Johan Svanstrom, chief executive of Rightmove, said: “This has been another period of strong progress for Rightmove, and it is a pleasure to see our product development and sales delivery generating greater acceptance from consumers and partners.”

“As a result, we remain confident of achieving significant strategic and financial growth in 2024.”

Rightmove’s trading update is the first since a failed takeover bid for the company by REA Group, an online property advertising company backed by Rupert Murdoch’s News Corporation.

REA made four bids, the last worth £6.2bn; However, Rightmove rejected this final deal because it continued to “materially undervalue” the business and its future prospects.

Anthony Codling, European head of housing and building materials at RBC Capital Markets, said Rightmove’s results were a “testament to the strength, stability and robustness of its business model”.

“While its customers… often have to negotiate rough seas and deal with problems at the factory, Rightmove has an astute ability to navigate calm waters and keep its boat in good condition.”

Right Movement Actions They were down 0.3 per cent at 594.8 pence on Friday morning, meaning they have risen around 27 per cent in the last 12 months.