Rightmove this morning announced revenue and profits up for the first half of this year, driven by an increase in agents and a rise in what they are paying. Its underlying operating profits margin is 76.3%, up from 75.5%.
In the six months to June 30, revenue was up 16%, to stand at £93.1m.
Pre-tax profits shot up to £80.5m, up from £66.6m for the same period last year. Underlying profits of £82.3m were up from £70.3m for the first half of last year.
The portal also announced a record number of estate agency and developer customers since the start of this year. Total customer numbers are now a touch under 20,000, at 19,981. At an average of £830, they are paying £90 more per month than in the same period last year. The increase is also a record.
Almost all are agents, a record number at 17,534, paying an average of £789 per office per month. The number of agents on Rightmove is up from 17,336 at the start of the year.
Traffic to the site has also grown, up 15%, to 127.5m per month.
Nick McKittrick, CEO, said: “Rightmove was visited over 750 million times in the first half of 2016, up 15% on last year, as consumers continue to turn to us first to search and research on the only place you can see virtually the whole of the UK property market. With the recent launch of our new search technology we are now delivering an even faster and richer experience for consumers to ‘find their happy’ from the 1.1m UK residential properties advertised on Rightmove.
“We are focused on helping our customers succeed by delivering the most significant and effective exposure for their properties and brand and being the largest source of high quality leads. In addition to the advertising efficiencies we deliver, we have continued to help our customers drive operational efficiencies through the software, tools and support we provide which draw on our unique data and insight across the UK property market.
“Whilst the economic outlook is more uncertain due to the result of the EU referendum, the visibility provided by our subscription model coupled with the value provided by our products and the strength of the Rightmove brand and traffic give us confidence in delivering expectations for the current year.”
City analyst Anthony Codling at Jefferies was quick to comment, saying it had been another strong performance from Rightmove, saying: “The UK may not have remained in Europe but Rightmove’s business model remains resilient.
“With challenges ahead in the existing homes market we see risks to the upside as agents perhaps increase marketing spend to sell homes and fight for instructions. Challenges for estate agents translate into opportunities for Rightmove.”
Comments (59)
Why doesn’t OTM have a blanket survey/questionnaire of ALL estate agency firms to establish what’s wrong with it, what could be put right with it and how it could NOW achieve its original objectives?
My firm has been critical of the modus operandi of OTM and had no intention of joining but now, in the face of blatant exploitation by RM, would join – if the lessons learned can be implemented.
I anticipate many more will too.
So come on OTM – do a survey – you could be in for a pleasant surprise and your worthy cause achieved after all.
Eamonn really ought to explain how he would do it different…. only he has to to it without use of anything that has already been posted by people he is all to eager to belittle.
I was busy yesterday so only just got to read this whole comment string. Eamonn is basically repeating what I have said consistently for 3 years. Eamonn agrees with nutjob May to the extent he is quoting me almost word for word. Now EAmonn finally got round to having an opinion, he hasn’t got one of his own he’s borrowed mine! Now that really is funny.
OKAY… enough of the frivolity… I’m kicking into Serious Mode now.
It’s that time of the year again (one of them, at least…) where the portals wind us about how well they are doing out of us all; why we should be grateful; and dangling the thought that they’re just gonna do it again next year so best prepare to bend over and grab your ankles as it’s gonna hurt.
People above whose agendas (maybe even Job Descriptions) clearly require it are making this mahoosive song and dance about it all being the fault of OTM.
Funny, that. We’ve been here before.
Several times. Actually – no. Many, many times.
Here’s an example at random. An old one, as it is important to show just how good things clearly were in these people’s minds pre-OTM.
I’m not going to post a link to anything down The Other Pub – but when we all frequented that establishment before the new Landlord took over and it all went a bit Pete, our present host Rosalind authored an article in February 2012 entitled ‘Rightmove announces 23% surge in profits’.
It gives, as you would expect, a lot of figures… statistics… and copious corporate ********.
P-T Profit up 23% on 2010 figures (+21% announced today)
Turnover – up 19% on previous year’s release (+16% in today’s figures)
Website traffic – + 22% on previous year (+15% today)
Notice something?
ALL of these 2010 figures are HIGHER percentage increases than those released today. Every chuffin’ one of them.
And for the record I’ve provided comparison figures for every half/full year now since 2010 here previously on EYE, if anyone gives enough of a shizzle to rummage4 them.
So – I guess there’s only one thing more to say on the subject…
Thanks, OTM – I guess we all owe you one.
I’ll take the ‘Dislikes’ as an acknowledgement of the truth, then.
Thanks for that. Made my day, it has.
Can I have some more, please – further confirming you know it’s right but are unable to dispute or debate the reality of the situation.
‘Nick McKittrick, CEO, said: “Rightmove was visited over 750 million times in the first half of 2016…can see virtually the whole of the UK property market… we are now delivering an even faster and richer experience for consumers to ‘find their happy’ from the 1.1m UK residential properties advertised on Rightmove.’
SO… it is reasonable to deduce from this (as the 1.1 million is fairly static…) that this equates to approximately 682 ‘visits’ per property listed… 114 per month… 26 per week… less than FOUR, per day, per property.
Yet they consistently tell me that each and every one of our properties are attracting hundreds… thousands, even, of ‘clicks’ per WEEK.
How come it simply doesn’t compute?
You can judge this for yourself by looking at your own stocks performance on the admin site.
I’m perfectly aware of the back-office ‘tools’ we have. What I am getting at is the numbers within the numbers.
Think about it.
You’re over complicating it.
Am I?
Looks to me like we’re all paying them 16% more.
Again – looks to me like 15% more people are using/abusing the site…
… are you seeing the extra properties and extra sales to justify it all?
They’re the biggest advertising site for properties, they can charge higher fees.
However depending on the size of company, you can negotiate with them,
REALLY?
We all know who are ‘the biggest’ Call-Centre Estate Agent – yet they charge miniscule fees.
Historically, RM’s ‘negotiation policy has been simple and straightforward –
1. Take it.
2. Leave it… and good luck. When you’re ready to come back we’ll stick you with the new rate.
The tail has wagged the dog for far too long – because it thinks it can.
I have a friend who works within Rightmove, and you can negotiate with them, and the firm I work with have just renegotiated lower costs with rightmove.
Don’t ask, don’t get.
The point here being you wouldn’t have been able to do that pre-OTM.
I would have to agree with PeeBee as to their negotiation policy.
As we all know over 80% profit margins is not good business, but extortion.
it may be pointless, but I have today filled in a complaint notification form taken from the CMA website regarding RM’s ‘abuse of a dominant position’.
Its quite easy to do and I would suggest others consider following suit.
The more the merrier.
OTM is a poor website, it’s design is average and the advertising has been rather hit and miss. I wouldn’t be surprised if OTM ceased to exist within the next few years.
Is there not a law against such obscene profit margins? There should be. And come renewal time they will be knocking on my door for another 10/12% annual increase. Makes you sick,
Surely not? If you can just take one step back, anyone can see that RM have an excellent business model and one of the only portals to deliver decent leads and exposure. The fact they are sensible with marketing and run a ‘tight ship’ is testament to the business model and the way they run.
Unfortunately Rightmove’s position was only strengthend when OTM launched as it weakened Zoopla’s position. The buying public will go to Z and OTM but will always return to RM as they have the majority of property and as we all know stock is king. I want OTM to succeed but there two portal rule working against them now. If all the agents who want to be on RM and Z also joined OTM then the property stock would increase. They are damaging their own stock levels. many agents see is that it is a great idea but won’t commit to OTM as it is an additional cost which won’t stop RM comming back with price increases again this year. What is OTM’s next plan? I have no idea as I have not had any direct contact in over a year. I am only on RM and was offered OTM at £50 per month, But since then no follow up and I can’t see a plan. My potential vendors never mention OTM. Unless we all leave on mass rightmove will just make more profit each year…you have to say they have a great business plan!
So you are not on OTM….. there you go…. the plan is simple….
more agents join, more stock is added, more traffic can be captured, more people talk about it, more agents join, more stock is added, more traffic can be captured, more people talk about it, more agent join, more……..
Or, I want it to succeed but will sit back and hope!
The [OTM] plan is pretty simple it NEEDS agents to back it and get it in a position where member agents taking their stock off the other two would leave OTM with the majority market share. But we keep saying the [OTM plan] surely this is a joint plan….. ie if YOU want it to work, you understand they need you on board. (at £50 why an earth are you not on….. as a full on top paying Gold member, I welcome you at £50….lets get more property on it).
No idea why I have found myself commenting on this again…… other than if the market is getting tough, fees are getting low and money is getting tight…… surely NOW is the time to understand the benefits of OTM.
OTM is a busted flush.
Agents have a duty to put what their customers want first not what they want.
in a paradox. I am Pro Agents mutual but anti On the market. That means I see the benefits of a portal owned by agents, I don’t see the benefits of its ridiculous implementation.
I think the very fact the majority of agents are “No Sale No Fee” makes any suggestion agents are not putting clients first is complete and utter tosh.
Just thinking being on all three or just RM & Z is a sign of an agent “putting the client first” shows how weak certain agents are.
Otherwise, you would sign up for every gimmick ever put in front of you, to ensure you are giving your client everything.
Fact is, websites are nothing more than a virtual shop window and as long as you are on the one visited the most you are doing your best, so RM covers that as demonstrated on almost every story we read….. supporting the weaker second portal is only the ploy to pounce for top spot one day… or just crack on being the best agent in the world on RM &/or Z.
in your own words
what complete and utter tosh. No sale, no fee is putting the customer first and at the same time locking them into an exclusive contract with substandard advertising?
what kind of fools do you think the public actually are. Talk about liking the smell of your own xxxt
Ok Eamonn…. Hands up all the No Sale No Fee Agents – who are not motivated to sell their stock and prefer to put property on and lose it to another agent in 3 to 6 months……
My point is; no sale no fee, motivates a motivated company to sell to earn money and to get that sale you and your client want you do what you know will get the job done! be it great photos, correct pricing, pay staff good commissions to motivate, coverage on the most relevant websites etc etc (do them all actually)….. The very fact I say to a client, don’t pay me if I don’t sell it means I am about to do my very best. How an earth can NSNF not be an agents biggest motivator therefore a clients knowledge that their agent will do their best.
I am obviously assuming I am appealing to a motivated estate agent who loves making money when I put this to you Emaonn. (I as a business owner I only make money by completing on sales and the more I complete on the more I make, I am only as good as my next sale, motivates me day in day out) YOU seem to isolate OTM as a decision undoing the other things we do! or perhaps you are not the business owner, so you get paid month in month out without feeling the pressure of what NSNF actually does to a good agent.
But go on then….. believe the website maketh the estate agent.
You need to re think, seriously
there is nothing wrong in supporting agents mutual and OTM. But not at the expense of what your customers expect.
Your NSNF is just your spin that you have created in your own mind to justify the incorrect decision in not offering the best service to your clients.
tomorrows customer was doing their research on Z and RM yesterday.
What absolute, unadulterated ********.
This will come as a total shock, I appreciate – but I need to inform you that there are things floating around… called buyers… who, with a few phone calls and a little persuasion can become what is termed owners of what has become known over the centuries as homes.
And all that can be done wholly or partly without the internet.
You should try it sometime.
It used to be called ‘Estate Agency’.
I dare say there’s a Wiki page for you to look it up…
PeeBee the line “tomorrows customer was doing their research on Z and RM yesterday” well that just lost my attention altogether….. proper text book sell a service tosh.
I am sure Eamonn is an uber successful estate agent, I on the other hand will continue to convince myself doing the basics brilliantly and being on the websites which matter will get me through another 25 years and another 10,000 sales agreed.
I agree people use Z to research but we all have a laugh when they tell you this and then say “we don’t have to be on it do we”. Glad I dipped my toe back in to the EYE water today…. once a month may be enough for me though.
It doesn’t happen often, Ric – but I’m gonna strongly disagree with you.
Once a month might be enough for you – but not nearly often enough to add balance to the comments stream.
The Other Pub ‘lost their way’ a long time ago; we all came here to a far better pub (some later than others and I still can’t ‘get’ why Ray Evans continues to call in for the occasional ‘alf of flat bitter…) – and the scribblings on their bog door are true testament to that.
Our ‘voice’ – YOUR voice – is important, at a time when Agency as we know it is facing challenges not only from outside but from within.
I sincerely hope that you, and others like you, make your presence felt far more regularly than that.
Hey PeeBee…..
I shall make an effort……. although my doctor has been most impressed at the reduction in my blood pressure levels of late.
sadly, your inability change your thinking and modus operandi will be your downfall.
Over the centuries houses will still be knons as houses but you will be known an extinct breed of estate agent that used to think in your mini micro environment.
Some call it darwinism. The survival of those fit enough to change and adapt to their environment.
Good luck
Yeah – and one day we will all be dust, blowing around whichever way the winds think fit to take us.
In the meantime – I’ll just assist a few more homes to sell if that’s okay with you. I will continue to adapt to every situation which presents itself during each of these sales – I will learn from every one and I will use that knowledge to help me face every new situation as it presents itself.
I suppose I could call that peebeeism – but I’m sure someone else gave it a snazzy title long before I was born.
One way or another – works fine for me.
oh no, that old adapt, change, dinosaur twaddle creeps in again.
How EYE has managed to attract so many useless business people with no idea how to survive staggers me.
Anyway, thanks for the wishes of good luck….. I make my own luck fortunately!
Only the corporate agents tie their customers a timescale. I work for an 11 office independent who offer 0 week contracts to all our clients.
Well put Kezza. Totally agree
The irony of reading that that the very agents who help Rightmove achieve these profits have had their share price slashed in the past year.
The tail truly is now wagging the dog.
Roll on all of the blame OTM ballocks…..
Funny bunch.
DISGUSTING!!! I am going to start a break away portal, run by agents for agents, who’s with me?
No need it’s here. Its called Onthemarket my friend
And the award for “Not Getting the Joke, 2016” goes to…
Perhaps Rightmove would like to spend some of those profits by sorting out portal juggling on an industrial scale on their website as they are contractually and legally bound to do.
The hiring of Ian Springett as Chief Disruptor of Competition was a genius move and the strategy will be taught to business students for years to come.
That’s nonsense.
This is the Rightmove model, doing exactly what it always has done, squeezing the pips out of its clients.
Given that OTM’s initial target was number 2 portal, it was never going to disrupt RM, so RM has continued along the same path.
A path that will never change unless the industry does something about it.
OTM’s aim hasn’t been to stop RM, not in the first instance anyway.
Paul
Correct Paul. OTM’s stated strategy has always been to first take on Zoopla and then Rightmove. Never to take RM head-on at the outset.
If more agencies would look further than the ends of their noses they would get behind OTM and create the eventual antidote to the rapacious profit-machine that is RM.
What a load of total nonscene. Get your head out of the AM fairy cloud.
OTM came to all agents looking for them to leave any of the big 2. It was obvious that RM would remain number 1 and need some serious attack after OTM gained enough momentum . But failure to capture number 2 spot has resulted in RM stepping ups it’s drive.
All OTM Have achieved is what everyone secretly knows. They made their members more reliant on RM and as a consequence now forced you to pay more.
Special Note the average spend is £789 per branch. That must mean some big corporates who haven’t supported OTM must have arranged rates that will make your busted balls cry.
the Principle of a portal owned by agents was and is excellent. But It has been implemented so badly it’s unreal.. Who could join such an organisation run by people with extended reputations of bust and failure.
they didn’t trust that agents would choose to join the mutual and later drop ZM/Z to continue their membership. They looked at other failed portals and thought we can’t do that. They forget their proposition was always unquie. Thus they entered into the portal market with a (consumer perceived) poorer product with only a third of the content that ultimately controls its success or failure.
Its really simple everyone. If you OWN the content that everyone wants to see, you will always own the customer,
‘Who could join such an organisation run by people with extended reputations of bust and failure.’
I think you should justify that comment Eamonn.
This could get interesting…
It won’t PeeBee. Because he can’t justify it.
there’s not much evidence of any substance to Eamonn’s thinking. Hit and run snidey snipes is his usual style, certainly nothing that can be classed as an opinion.
Bobhy, you obviously find me intereting enough to bother comment on me.
say hello to Mulder and Scully for me and mums the word on all . Try and keep it REAL. For the benefit of all of us.
Good fellow.
NOW who’s on meds?
(and seriously needs to come off them)
Not really Eamonn, I read your predictable attempts at insulting and disparaging me then feel sorry for you.
You’ve been trolled into comment today and that is funny.
Mr May…
Can I call you Bobhy?
How is it pronounced – silent ‘H’ I presume?
Or is it Welsh, or Devonish, or something equally ‘…ish’?
Either way – you’ve landed yourself a bunny boiler, I reckon…
REALLY, I don’t need to justify it to anyone other than myself, which I have done and voted to stay away from what Is now dubbed “THE FOOLS PORTAL”
( hit your dislike button now)
But for your amusement, no withstanding the original member agents. There are so many players in that organisation with publishing backgrounds it would take three to four days to list the obscene number of failures. I recommend you do some research into the telegraph,, and EMI as a place to start. So my old mucker, if you failed to do your research that’s your cheese and for you to justify to your staff and customers.
But here are a list of OTM failures to date to cry (not laugh) at
it is light years behind Z in terms of unquie visitors, audience, member agents and stock. It set out to be the, number 2 portal in early 2016. At the current rate it will never be number 2 unless the other two merge. FAIL
one of the ideological goals of its members was to curb the prices sought by Z and RM. FAIL
It never protected itself from member agents being acquired by other non member agents. FAIL
The message is non effective, Purplebricks have more audience members with less spend. FAIL
It has acted with Impunity In trying to source members totally disregarding for its core members. Offering different Terms and conditions to others. FAIL
it has not advertised anything to the degree it promised it members. FAIL
IN SUMMARY, your business needs to work harder than it should because of the failed promises of a doomed idea formed in a Knightsbridge bistro.
Eamonn. I am not taking issue with you assessment and opinions of AM/OTM as a business. But you specifically have said it is ‘run by people with extended reputations of bust and failure.’
That allegation either needs to be justified – which you have not yet done.
Or it needs to be withdrawn.
Your call.
You have now added that: ‘There are so many players in that organisation with publishing backgrounds it would take three to four days to list the obscene number of failures.’
That’s another seemingly wild allegation. Don’t take three to four days to list the obscene number of failures. Just take two minutes and list, say, two of them.
Told you it was going to get interesting…
;o)
Great, when theIr not selling houses they are secret Marxist masquerading as the COMMENT POLICE.
what am I your research tool.
I would suggest the word ‘research’ is superfluous in the above post…
So, not even just two then Eamonn?
Your silence speaks volumes.
Not even one, AI.
Not even a hint of one.
I quite agree with Eamonn, if you own and have invested to win the content then you own the customer. Yes, but the problem is that advantage is then handed straight to RMV and Z..and they then charge you double bubble for it. That’s why agents need to own their own route to market and that’s vital to grasp. RMV didn’t start perfect, it has taken 16 years to get to where it is, give OTM a chance to start