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TODAY'S OTHER NEWS

OnTheMarket will be profitable by Easter says advisor

The financial consultancy advising OnTheMarket says the portal company will be in profit by Easter next year.

“We now expect OnTheMarket to have substantial net cash of £8m on 31 January 2020, to be on track to reach breakeven after Easter 2020 and deliver an attractive EBITDA margin as it builds its network and adds additional product” says Zeus Capital.

Yesterday OnTheMarket announced it had acquired a 20 per cent stake in the parent company of online PropTech platform teclet; OTM also has an option to acquire the remaining 80 per cent.

The Zeus consultancy, which has been advising the portal since it floated on the stock market two years ago, continues: “Our forecasts assume OnTheMarket starts building ‘other revenue’: teclet provides potential for the group to develop additional products.”

Zeus says Rightmove has an operating margin of over 75% per cent and trades on 19 times its revenue and 30 times its earnings.

“Our analysis ... suggests OTM with a more sustainable pricing strategy and with the opportunity to deliver additional product with high incremental operating margins, should trade on over five times revenue.”

Shareholders yesterday appeared unimpressed by the forecast - the share price closed down almost four per cent at 73.0p.

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