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'PSG yet to stretch its legs' – analysts report on Zoopla figures

Several stock market analysts have published reports on Zoopla's half-year trading statement released yesterday.

Anthony Codling of Jefferies – the firm which helped Zoopla Property Group (ZPG) with its float in 2014 – remarked that its latest acquisition, The Property Software Group (PSG), is yet to 'stretch its legs'.

"The proposed acquisition of PSG came after the period end and has not therefore contributed to the first-half results," says Codling.


"In our view, the addition of PSG will allow the group's performance to go up another gear in due course."

Codling's note says that Zoopla's results do reflect the impact of the launch of OnTheMarket last January – referencing that the group's UK agency revenue was down 11% year-on-year.

The note also references uSwitch's performance, which Codling says has been strong.

Another analyst, William Packer – executive director of Media Equity Research at Exane BNP Paribas – described ZPG's results as 'mixed'.

He also noted the impact of Agents' Mutual's portal and references an '8% organic decline' in property revenue.

Packer does go on to note ZPG's membership growth, though, and says that its results were significantly ahead of his firm's forecasts.

Yesterday ZPG reported that its UK agency partners increased by 4% to 12,956 and that it has now had 12 consecutive months of UK agency partner growth.

In the six months to the end of March 2016, ZPG's websites and apps received over 300 million visits, 68% of which were via mobile devices.


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