Shares soar after Rightmove says it will beat 2010 targets
Wednesday 10th February 2010
Shares in Rightmove shot up yesterday after management said the company will beat its 2010 forecasts.
It was able to make the confident statement after reporting that estate agents signing up for the year had agreed to increases of up to 20%.
Rightmove had been talking to agents, offering them either raised rates or the chance to stick at last year’s rates if they agreed to buy at least £200 worth of extra products per month.
It seems most have, with Rightmove saying: “Trading in January saw a substantial increase in average spend per advertiser.”
It added that, as a result: “The board is confident that 2010 profits will be above current market expectations, subject to no significant change in market conditions.
“This is based on the higher average spend per advertiser achieved in January, evidence from our customers of our continued value for money, and the predictability of our subscription model.”
The shares rose by 40p to 565p, over 7% on the day.
Rightmove also confirmed that its profits for 2009, to be announced on February 26, will be in line with market expectations.
Analysts are forecasting pre-tax profits of £39m for 2009, rising to £45m for 2010.
Rightmove shares have also benefited from its deal with Google Maps, which is to launch its own property search engine site this year.
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