Rightmove Says "Membership Numbers Not Growing as Quickly as Forecast" In Trading Update

Rightmove has issued its first trading update since rejecting the final of four takeover offers by Australia's REA Group.

The British portal giant revealed revenue of approximately £390 million but also admitted membership growth has slowed by half this year.

The portal says that membership numbers are expected to grow by around 1% compared to 2023, down from the 2% forecast issued in this summer's previous update.

However, ARPU rose more than expected to £85-£95 on 2023’s £1,431—higher than previous guidance of £75-£85.

In short, the average agent now pays Rightmove circa £1,500 for their monthly package, with the portal saying the increase is driven by increased takeup of the Optimiser Edge package for estate agents.

Other one-off costs included Rightmove's £3 million investment in conveyancing platform Coadjute, in which Rightmove acquired an 8% stake.

Johan Svanstrom, CEO at Rightmove, says:

"This has been another period of strong progress for Rightmove, and it’s pleasing to see our product development and sales delivery generating increased uptake from consumers and partners.

"As a result, we remain confident in achieving meaningful strategic and financial growth in 2024. We see continued momentum building product depth across our platform—driving revenue growth in the core business and within our strategic growth areas."

The trading update comes around a month after Rightmove held firm in rejecting multiple takeover bids by REA Group, the Australian real estate giant backed by Rupert Murdoch.

REA made four bids for Rightmove in September 2024, but was swiftly rebuked for its "opportunistic" and uncommunicative approach.

Rightmove’s shares have fallen 3.4% over the last month since the REA takeover bid collapsed.