x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Purplebricks has 70% of UK online market and confirms expansion

Purplebricks says its performance in the UK “is currently showing double-digit growth year-on-year in monthly instructions.”

In a brief UK trading update - attached to confirmation that it would be expanding into Germany - Purplebricks this morning says that “with further market share gains, in what continues to be a challenging market … Purplebricks' share of the UK online market remains above 70 per cent.”

The next formal update on Purplebricks' performance in the UK will be on November 6.

Meanwhile this morning's statement also confirmed a Sky News story that was reported on Estate Agent Today last evening, that Purplebricks would be entering a 50-50 partnership with Axel Springer - which is already a big investor in the hybrid agency - to form NewCo, a joint venture company.

NewCo will spend €25m on buying a 26 per cent stake in Homeday, a German digital estate agency which has a 50 per cent share of that country's online estate agency market.

In July, in an interview with the Press Association, Purplebricks' global chief executive Michael Bruce suggested that following his agency's acquisition of the Canadian firm DuProprio/ComFree, it was ripe for further international expansion - and Germany was considered the most likely, given the Axel Springer involvement.

Under the deal revealed by Sky, Purplebricks and Axel Springer would also have an option to buy another 28 per cent of Homeday next summer, for €20m, potentially giving NewCo a controlling stake within a year.

Sky says Homeday had revenues of about €4m in 2017, with that figure expected to double in 2018.

This morning's statement from Purplebricks says: "Launched in 2015 by founder and CEO Steffen Wicker and based in Berlin, Homeday operates a transaction-based digital real estate agency platform in Germany that helps customers to buy or sell real estate. The Homeday model has some similarities to Purplebricks, combining a technology platform with an expanding number of local agents, referred to as 'realtors', operating across 65 German residential markets including Berlin, Hamburg, Munich and Cologne. The realtors are typically sub-contractors rather than employees. The customer proposition and service level provided by Homeday are well regarded, as evidenced by a Trustpilot average score of 9.3 from over 850 reviews." 

  • Simon Shinerock

    In for a penny in for a pound, it’s bad it’s mad and it’s all a bit sad 😔

  • icon

    Are they not causing enough misery in Britain?

    icon

    For the expensive high street agent, yes. With good reason.

     
  • Tony Sinclair

    Jackanory time again folks. over 70% of online market? With an imagination like that they should be writing kiddy books and fairy tales... from a padded cell...

  • Gavin Brazg

    @tonySinclair thats actually the one fairly accurate figure.

    icon

    Surely then (in the interest of accuracy - something of a stranger to PB) the statement in this case should be "70% of the online only market". Traditional agents are also all online, the online presence figure of all combined agents across the UK would see PB's 70% claim dwindle significantly - so the figure may be fairly accurate in one respect but has been applied to nothing more than spin.

     
    Gavin Brazg

    When you put it like that...

     
  • icon

    I shall meet this "news" with the contempt it deserves.... so here it is - "LOL"

    Trustpilot! - Irony
    70%? - Lol again

    I am excited by the prospect that this is the start of the PB over expansion.

  • icon

    Trust pilot.
    Pile of pants.
    Purplebricks.
    I've said it and I will say it again.
    Price them out of business.
    Short time pain for long time gain.

  • icon

    Hang on...let me get this right....PB and Springer are paying £22m for a 25% share in Homeday? ( £22m x4=£88m total value)

    Their trading statement reads issued to the LSE this morning reads "For the year ended 31 December 2017 Homeday reported revenues of €3.5m and a loss of €3.2m. As at 30 June 2018, Homeday had net liabilities of €1.4m. Homeday anticipates strong revenue growth in 2018 and has budgeted that it will breakeven in 2021." This means, as far as I can see, that Homeday made a loss of €6.7m?
    Am I missing something?

  • icon

    Purple Bricks will have to list the entire housing stock every six years to make a profit...plus a few pyramids!!!

  • icon

    Too fast/ too quick and it all comes tumbling down.


  • Gavin Brazg

    Here's a funny thing....PB have 70% of the "online only" market (and only if you look at Zoopla listings for just PB, emoov, Tepilo, Yopa, House Simple, House Network & Doorsteps).

    However, look at the same stats using Rightmove listings and PB market share is 60%.

    Go figure!?

  • icon

    Lies.lies and dam lies

icon

Please login to comment

valpal
submit
sign up