OnTheMarket sees price shrink despite plans to overcome Rightmove

October 14, 2019
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OnTheMakret has claimed that it gets agents a higher marketing yield than rival Rightmove.

Investors appear to disagree - when the claim was made, OTM’s share price dropped over four percent while Rightmove’s rose by more than six percent.

The statement on yield came from Zeus Capital, a so-called ‘banking boutique’ which has in the past helped both OTM and Purplebricks float on the London Stock Exchange.

“On its standard tariff of £331 a month, OTM provides its advertisers 34 leads for every £100 spend: this is more than twice that of Rightmove” it says, suggesting that Rightmove in the first half of this year provided only 16 leads per £100 spend. 

Zeus continues: “We maintain our forecasts which we set on 26 September 2019. Strong cost control and increasing contracted monthly run-rate revenues support management’s indication that OTM should reach breakeven in [quarter two or quarter three] next year. In our view, once it has reach breakeven, OTM should trade on over £10,000 per advertiser (ie over £125 million).”

However, at the end of the recent trading, OTM shares hit just 80p - a drop of over four percent on one day alone, at the end of a week which saw the portal deliver what analysts suggest were mixed results for the first half of the year.

Read more here 

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