Rightmove’s latest financial results have been described as “solid but uninspiring” by a prominent investment expert.
On Friday, Rightmove published its half-year results to 30th June 2024, showing revenue up £12.6m/7% to £192.1m, and operating profit of £131.6m, up 2%.
Reacting to the results, Charlie Huggins, head of equities at Wealth Club said: ““These are solid but uninspiring results from Rightmove. Despite the significant challenges facing the housing market, it has again grown revenue and profit, underlining the resilience of its business model.
“However, underlying operating profit only grew by 1%. This reflected some one-off costs, but it also reflects the need for Rightmove to step-up investment in innovation.
“CoStar’s acquisition of OnTheMarket means Rightmove now faces a highly credible and deep-pocketed rival. Innovation is becoming increasingly important and that comes at a cost.
“Rightmove still retains a very dominant position, and it will be difficult for CoStar to make a significant dent. Even without much growth, Rightmove is still a cash cow. But with the competitive environment hotting up, Rightmove cannot afford to rest on its laurels.”
More reaction:
‘Money come rain or shine’
Anthony Codling, managing director, equity research at RBC Capital Markets, said:
“A strong set of results from Rightmove. When the housing market is buoyant it makes a lot of money, and when the housing market is tough it also makes a lot of money, suggesting that come rain or shine, the UK’s love affair with property has firmer foundations than the underlying economy.
“House prices and rents may be out of reach for many, but that doesn’t stop UK households turning to Rightmove to get their property fix.”
‘Enemy at the gates’
Adrian Lunn, director at Eddisons, said:
“Against a challenging backdrop where would-be buyers are still grappling with higher mortgage rates and a drought of new homes coming on to the market, the UK’s largest online property portal delivered a 7% hike in revenues and maintained its position as the market leader.
“It’s an impressively resilient performance and Rightmove’s half-year results serve as a reminder of the digital platform’s dominant position in the online property space.
“Rightmove commands over 80% of its market, but the enemy is at the gates. Only six months ago, its market share stood at 86%, so the platform is clearly having to fight for its breakfast in an ever more competitive landscape.
“That said, users spent over 8.3 million minutes on the platform, which seems pretty unassailable for now and guidance for revenue growth remains unchanged at 7-9%.
“With the property market poised for growth, spurred by the new government’s policies for new housing combined with the likelihood of falling interest rates later this year, Rightmove seems to be well positioned to benefit from a recovery and to continue to lead the property market’s ongoing digital evolution.”
