20th Mar 2020 08:33
(Alliance News) - Rightmove PLC on Friday said it expects 2020 revenue to be reduced as a result of discounts to be offered to its Agency, New Homes and Commercial customers from April.
The FTSE-100 online property portal said it will be offering customers a 75% discount on their invoices for four months starting from April. It said the discount is intended to support its business through uncertainty and likely changes in tenant behaviour following the introduction of renters protections by the government.
Rightmove said the discounts will reduce 2020 revenue by GBP65 million to GBP75 million. For 2019, the company posted pretax profit of GBP213.6 million on revenue of GBP289.3 million.
"At Rightmove we are doing everything in our power to rise to the challenges of Covid-19. We have chosen to utilise our position to support our customers at this difficult time," said Chief Executive Peter Brooks-Johnson.
This development comes after the company said on Wednesday that to reduce cash flow burdens, qualifying agents listing on its site will be able to take advantage of a payment deferral plan of GBP275 per month for up to six months.
The stock was trading 1.2% lower at 469.40 pence each on Friday morning in London, having started higher at 514.80p.
By Ife Taiwo; [email protected]
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