Operating profit up despite challenging market conditions
Property portal Rightmove has announced its results for the six months to June 30, 2024, showcasing robust financial performance driven by sustained demand from agents and new home developers.
Revenue rose by £12.6 million, a 7% increase to £192.1 million, as agents and developers renewed contracts, upgraded packages, and invested in additional products.
Operating profit also increased by 2% to £131.6 million, up from £129.5 million in 2023. Underlying operating profit also saw a 1% rise to £135.1 million, compared to £133.2 million last year.
These figures include one-off acquisition costs of £0.6 million related to HomeViews and strategic long-term investment in Coadjute, alongside a one-off charge of £3 million for the Coadjute investment.
Excluding these costs, operating profit would have been £135.2 million, up 4%, and underlying operating profit £138.7 million, also up 4%. Underlying earnings per share would be 13.2p, reflecting a 6% increase.
In its half-year results announcement, Rightmove said it has maintained its market share leadership at over 80%, recording an 86% share in both 2024 and 2023, solidifying its position as a trusted site for home-hunters.
Johan Svanstrom (pictured), chief executive officer of Rightmove, expressed satisfaction with the results, highlighting the progress in enhancing the company’s digital platform for the UK property industry.
“Our performance came against the backdrop of the sustained challenging mortgage rate environment,” Svanstrom said. “The period saw a pick-up in existing-homes listings and transactions, a continued yet softening imbalance of demand and supply for rentals, and a tentative outlook for new homes development volumes.
“With the election now concluded, the property market looks forward to potential interest rate reductions which will further stimulate activity. On the back of our leading position in the market, we have exciting momentum expanding our products and innovation for consumers and partners and remain confident in Rightmove’s long-term prospects.”
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