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TODAY'S OTHER NEWS

Rightmove average charges top £1,000 a month as revenue and profits soar

Rightmove has this morning given its 2018 report to shareholders, laying bare the huge financial wealth of the company which dominates the UK portal scene.

The average revenue per advertiser - that’s ARPA, the critical measure for portals - has risen £83 in the past year to £1,005.

Revenue is up 10 per cent year on year with growth; underlying operating profit is up 10 per cent and operating profit up 11 per cent.

It says it’s seen continued traffic growth with visits up over four per cent averaging nearly 132 million visits per month( and the time on site up five per cent at over a billion minutes per month.

The portal has enjoyed what it calls ìstable membership” - in fact its agency and new homes customer numbers are up slightly to 20,454 - while it boasts that “virtually the whole of the property market in one place with one million UK residential properties advertised on Rightmove, which is more than any other UK portal.”

And the company insists there’s more growth to come despite economic uncertainty for agents and the apparent threat of rival portals.

This morning Rightmove has told its shareholders: “We believe the UK online property advertising market will continue to grow, despite the continuing uncertainties stemming from the result of the EU referendum. Consumers and customers are becoming increasingly digital and customer spend continues to transition online from traditional advertising channels as they take advantage of the efficiencies we bring.

“Our clear market leadership coupled with the value of our digital solutions and our unrivalled data positions us well for the future. We remain vigilant to the macro environment, but Rightmove is not materially impacted by the property market cycle except in the most extreme circumstances. With ARPA continuing to grow and our commitment to further innovation, the Board remains confident of making further progress in 2019.”

Peter Brooks-Johnson, Rightmove’s chief executive, has told shareholders: "2018 was another strong year for Rightmove. We extended our market leadership and reinforced our position as the place consumers turn to first when thinking about moving home. In doing so, we demonstrated that Rightmove is a business which can continue to grow strongly even in uncertain times. 

“We focus relentlessly on creating a more efficient marketplace, constantly innovating to provide deeper insights to our agent and developer customers, and an even simpler, more intuitive user experience for home hunters.

“Visits and time spent on site both continued to grow, with over 1.5 billion visits from consumers over the year. The resilience of our customer base is shown by our stable membership numbers, with particularly notable growth coming from New Homes developments. I'm excited by our plans for 2019 as we continue to focus on innovation to make home moving easier."

The company returned £168.5m to shareholders through dividends and share buybacks in 2018 and its final dividend of 6.5p shows a 12 per cent rise. 

This morning’s statement also reveals that Rightmove’s chairman, Scott Forbes, is stepping down next year after 14 years.

  • icon

    Pure greed.
    Let's all get out of Rightmove.
    When fees are minimal Rightmove increase profits are our expense

  • Michael Riley

    I appreciate I may be a lone voice on this... but ... Id say £1000 a month is remarkably good value for the vast majority of agents that use it.

    Like Apple, I dislike the way they are "sandbagging" the release of juicy new tech... but if I were them I'd do the same until competitors caught up.

    They take a lot of stick, but its a brilliantly run business, consistently serving agents and buyers at scale.

    They deserve all the profit they get.

    icon

    Definitely lone voice!

     
  • icon

    If £1,000 is the average why are we being told by Rightmove that the minimum we can pay is much higher?

  • icon

    I pay £1800 A month
    I was told if I dropped my Microsite I would be £1400 A month

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    So you dropped it, right?

     
  • icon

    Sorry I agree with Michael Riley. Gone are the days when agents would have to agonise over which extremely expensive lifestyle magazine or newspaper to use and how much to allocate. The portals level the playing field for everyone and they're here to stay.

  • Marcus Parkinson

    To Michael Riley £1000 + per month could be good value (When you consider many offices are rental only a lot of agents will be paying vastly more) - if that was the only portal but when you can advertise for less than a quarter of what they charge then your actually being ripped off. Apple phones are good but if they relentlessly put the price up (As there recent sales drop proves) eventually people will seek out an alternative. The only reason Rightmove are there is because of Estate Agents if they advertise there stock somewhere else the public will follow. I think you'll find with there persistent rises and a take it or leave it attitude towards agents - especially at a time of a slowing down market, 1% Fees and a rental fee ban on the horizon we are approaching the "straw that broke the camels back moment" when the exodus comes it will be quicker than anybody anticipated.

    Michael Riley

    Happy to have a friendly wager on Rmove being the leading portal in x years.

     
  • Marcus Parkinson

    Your on Michael there was a 2% drop in agent numbers last year - we and others locally have left since Christmas - others are considering - I think you will see a much bigger number next year. The above happened before the latest round of "shafting your customers" aka annual price rises - since then more agents are heading for the exit ...once others see competition survive and flourish without the expense the trickle will become a torrent.
    Believe it or not - one agent who complained about the rise was actually engaged by Rightmove (who normally treat you with the same disdain as wiping dog poop off their shoes) to put his rise on hold till September …. which a) means he is planning to leave in September and b) behind the closed doors its dawning on Rightmove that there is a real big issue building and looking down your nose at the "scum" / customers you have treated with such disdain might not be as sustainable as its proved in the past ….watch this space ;)

    Michael Riley

    Okidoki. So whats the bet then? Rightmove not the leading portal by when?

    Im happy with leading defined as a) visitor traffic b) turnover c) agent members.

     
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