Rightmove Announces Big Hike In Profits !!

Date Published 01 August 2012

Revenues and profits both bounced up at Rightmove, the site said this morning in reporting its half-year results for 2012.

Income was up 23% to £57.9m and profits shot up 28% to £42.6m. The profit margin jumped to an extraordinary 73.5%, up from 71.1% in the first half of last year.

The huge hikes were not because of a growth in the number of agents and developers listing on the site. Numbers of advertisers have been virtually unchanged this year, rising just 0.1% since the end of last year to stand at 18,299 and 1% lower than the first half of last year.

However, average revenue per advertiser was up 20% to £518 per month. In the first six months of last year, the average spend per advertisier was £430.

Rightmove said customers had increased their spend `more sharply than usual at the start of the year`, with higher prices being charged and 80% now buying one or more additional advertising products.

Ed Williams, managing director, said: "Britain continues to move at Rightmove. Not only is Rightmove where home movers look for their next home but we are the definitive source of information on what is happening in the UK property market.

"Our reputation with agents and other property professionals, whether through our data services business or as the source of the best view of the market for landlords and vendors, goes from strength to strength."

The site also reported that traffic to Rightmove is up 20% on a year ago.

However, in this morning`s results, Rightmove did warn that it could be at risk if the state of the housing market leads to a reduction in the number of agents advertising on its site, and said there were `uncertainties` surrounding the housing market.

But it also pointed out that Rightmove had managed to grow its revenue in challenging market conditions.

Also this morning, Nationwide reported a 0.6% monthly fall in house prices, with the average price now standing at £165,738, a 1.5% annual drop.

Robert Gardner, Nationwide`s chief economist, said house prices had now fallen for the fourth time in five months.