OnTheMarket ‘progressing’ with agency contract renewals

OnTheMarket chief executive Jason Tebb has said he is “pleased with the progress” of getting agents to renew contracts as the portal said it is expecting its full-year operating profit to be in line with management expectations.

At the time of its public listing in 2018, agent shareholders were restricted from selling their shares for five years and that lock-in period ends on 9 February 2023, with efforts now progressing on getting users to renew contracts.

A trading update from the portal said the property platform expects to report revenues of between £34m and £34.5m for the 12 months to 31 January 2023.

That would be up from £30.4m a year before.

The portal said its average revenue per advertiser has continued to grow despite the delayed launch of some of the group’s new technology products and services in a challenging macroeconomic environment.

Adjusted operating profit for the year is expected to be between £4m and £4.5m, up from £2.7m previously.

The update said: “Whilst the current macro-economic and geopolitical backdrop remains uncertain, our customers are looking for value-for-money advertising to generate valuable high-quality leads together with technology solutions that provide the most value and support them in winning new instructions and interacting with buyers, sellers, tenants and landlords. 

“With a continuing commitment to ‘listening, innovating, delivering,’ the planned launch of the “OnTheMarket 2.2” website upgrade in H1 FY24, ever expanding engagement with our customers and a broadening suite of products and services, the board remains confident in the outlook for the group.”

Tebb added: “We have made significant progress with our strategy of building a tech-enabled property business and are pleased to continue to be delivering strong growth and profitability. We have also been pleased with the progress we have made in renewing contracts with our agent customers.

“Whilst market conditions remain challenging, we are well placed with the exceptional value we continue to offer agents and housebuilders alongside our growing range of additional products and services and with more to come in 2023.”