UK online property business Rightmove says it is aiming to achieve an average advertising rate per advertiser of £70 on the back of its existing £60-£70 growth rate in previous years.
The company made the announcement following the release of its December 2015 final results which reported a 15 per cent increase in revenue to £192.1 million with growth achieved across all areas of the business.
Rightmove also reported an underlying operating profit of £144.3 million, up 16 per cent from last year and “nearly 50 percent more UK residential properties on Rightmove than on any other portal”.
Last year, Rightmove reported its advertisers paid on average £754 per month, up from £684 in 2014. The latest rise would put the average paid by an estate agent branch per month up to about £820.
Despite Friday’s clearly strong results, Property Industry Eye noted shares in Rightmove fell back, “after a broker said that agency branch members were down”.
Rightmove denies the claim.
In its results, the company states Rightmove expects this year’s profit margin to remain at around 75 per cent, due to cost growth in staff and technology, plus further investment in marketing.
Rightmove is said to have played down any idea of industry transformation by online agents.
Meanwhile Property Industry Eye reports William Packer of Paris-based investment company Exane BNP Paribas has reiterated his firm’s ‘outperform’ rating of Rightmove.