Rightmove increases revenue despite weaker property market

Rightmove’s revenue jumped last year despite a slowdown in UK house sales.

Revenue was 10% higher at £267.8 million as the housing search engine brought in more money from the estate agents and housebuilders that advertise on its platform.

The average amount paid by advertisers each month surpassed £1,000 for the first time to reach £1,005.

Profit before tax was £198.6 million, compared to £178.3 million in the previous year.

Chief executive Peter Brooks-Johnson said: “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.”

The UK’s property market has been affected by a slowdown as economic uncertainty caused by Brexit and other factors weigh on the number of homes being sold.

But Rightmove said it has minimal exposure to the shifting property market because of its subscription model and the high number of its customers who also offer lettings.

Due to higher numbers of renters in the UK, the company is putting more focus on the sector in the current financial year.

At the end of last year, Rightmove introduced a “tenant passport”, a digital tool with which potential renters can provide information to pre-qualify themselves for a property when sending inquiries.

Shares in the company were down 4.5% in early trading.