Despite the serious uncertainty in the UK housing market for estate agents, there’s still plenty of opportunity for their vendors. At least, that’s what Britain’s biggest property website Rightmove has found. This stable company has posted double-digit revenue growth over the past year, allowing it to shrug off the weak market.
The main reason for this revenue hike was a 10% increase in their average revenue per advertiser. This growth is reflected in the rising share prices for the UK-based company. While this growth is good for Rightmove and its investors, real estate agents are less than pleased. Anthony Codling, an analyst at Jefferies said that “agents are not happy that while they are struggling to make ends meet, Rightmove is making a 76pc profit margin. But they keep paying and stay on.”
- Rightmove’s revenue increased by 11% in 2017 to a high of £243m.
- Home buyers spent nearly one billion minutes browsing their site over the past year.
- This continued growth and stability is due in part to Rightmove’s 76% profit margin.
Britain’s biggest property website Rightmove has shrugged off fears of a slowing housing market as it posted a double-digit rise in revenues and profits and revealed it attracted a record number of customers last year.
The company, which makes money by charging estate agents and house builders to advertise their properties, said the industry faced “continuing uncertainties stemming from the result of the EU referendum”.
But its outlook for the online property advertising market “remains positive” as house buyers and agents “are becoming increasingly digital and therefore spend continues to transition from traditional advertising channels”Rightmove’s revenues climbed 11pc in 2017 to £243m after its customer numbers grew to a record high of 20,427 and house hunters spent almost a billion minutes browsing its website.
View the original article at The Telegraph