Property listings website Rightmove was one of the FTSE 100’s biggest faller on Friday as it warned sales growth would cool over the remainder of 2025.
At 786.8p per share, Rightmove’s share price was last 1% lower in end-of-week trading.
Revenues rose 10% between January in June, it said, to £211.7 million. This was driven by “Estate Agency and New Homes developer partners [investing] in upgrading their packages and purchased incremental products.”
Operating profit increased 10%, to £145.4 million. On an underlying basis, profit rose 9% to £151.3 million.
Rightmove’s underlying profit margin ticketed 2% higher to 71%, which it attributed to “planned growth-focused investment.”
Cash and cash equivalents rose to £42.4 million, up from £41.3m a year earlier. It raised the interim dividend 9% year on year to 4.05p per share.
ARPA Up
Rightmove said that average revenue per advertiser (ARPA) increased by £112 over the period, to £1,609.
This was thanks chiefly to a £153 rise among property developers advertising new homes. This increased to £2,093.
Estate agency ARPA rose by £103 to £1,520.
Total membership numbers improved 1% from the mid-point of 2024, which the company said reflected strong estate agent retention and the creation of new agencies.
Rightmove noted that “agent formation returned to levels not seen since 2020, as the market is more conducive to new entrants.”
However, it added that it continues to experience “low levels of new build developments coming to market.”
The FTSE firm said that property market trends remain “supportive,” with further Bank of England base rate cuts tipped between now and the end of the year.
Rightmove halved its home price growth forecasts on Monday, to 2% from 4%, as a glut of new homes entering the market depresses asking prices.
Sales Guidance Maintained
Chief executive Johan Svanstrom said that the results “highlight the strength of our platform and how we serve our long-term partners with products tailored to their circumstances and needs.”
He said that “we have seen an increase in agent formation and estate agents using our top package, Optimiser Edge, which helps maximise their performance,” adding that “developers of new builds are turning to marketing products including our new Ascend package to help compete for buyers when the ratio of new builds to resale stock is at a post-COVID low.”
Rightmove maintained its full-year sales growth guidance of 8%-10%, and tipped an underlying operating profit margin of 70%. It also predicted a 1% uptick in membership numbers, and ARPA growth of between £95 and £105 across Estate Agency and New Homes developers.
Second half revenues growth is tipped to be lower than that of the first half, reflecting the record sales printed in the corresponding 2024 period.
Only Game In Town
Analyst Mark Crouch of eToro commented that Rightmove “continues to benefit from the kind of structural moat few can replicate. Agents might grumble about pricing, but they can’t afford not to be on Rightmove. And crucially, no rival has come close to denting its reach or brand strength.”
He added that “With no serious challenger in sight, a slowdown in UK housing could actually strengthen Rightmove’s grip, weakening smaller competitors just as they try to get their foot in the door.”