Anthony Codling spoke of his view on the success of Rightmove at the Guild of Property Professionals conference. He commented on the growth of the property portal's profits in relation to the estate agents it serves.
He used the example of LSL, an estate agency group which was also forecasted as having 50% higher profits from 2007 to 2017. During the same time, LSL's share price had risen around 30%.
Colding also compared this to Rightmove's profit growth over the same period of time and said, much to the audience's surprise, that Rightmove had been 472% while its shares skyrocketed by 1,050%.
Anthony Codling continued with:
“For every £1 you give Rightmove, it puts 76p in its back pocket as profit.
“Let’s say, and this might be a bit out there, the industry-owned its own portal, and it had the same cost base as Rightmove, your costs would be £220 a month, not £900 a month, which is what the average agency pays Rightmove.
“I am not saying it is right or wrong — I am just an analyst and I am just showing you the figures.
“I happen to think Rightmove is the best business I have ever analyzed.”
By contrast, he said he viewed the flotation of OnTheMarket later this month as a “missed opportunity."
“How can a mutual have external investors and keep the costs low for you?
“If I were an investor I would be saying: ‘I will buy your shares and I look forward to seeing those 76% profit margins soon.’
“I wish them well but I think it was a missed opportunity for the industry.”
Join us in Bangkok from the 28th of February to the 1st of March for the 22nd Property Portal Watch Conference. The theme for this year is The Future of Online Real Estate Marketing – Getting Closer to the Transaction.