6th Aug 2024 09:23
(Alliance News) - Rightmove PLC on Tuesday said market conditions in the lettings market remain "fluid", as it disclosed its contract with OpenRent will not be renewed.
In response, shares in the Milton Keynes, England-based online property portal fell 4.7% to 521.00 pence in London on Tuesday morning.
Rightmove reiterated 2024 revenue and margin guidance and continues to anticipate revenue growth of 7% to 9% and an underlying operating margin of 70%. Rightmove said these are both in line with market expectations.
But it cautioned "market dynamics - within lettings in particular - are fluid".
"While we remain confident of delivering revenue and margin in line with the guidance above, the precise mix of membership and [average revenue per account] may vary. Our current estimate is that membership will decline by up to 3% year-on-year, with a year-on-year increase in ARPA of GBP90 to GBP100."
The update on trading came as Rightmove disclosed its contract with lettings agent OpenRent would end at the start of September after they failed to agree renewal terms.
Rightmove said OpenRent accounted for less than 8% of its lettings listings in July.
The firm is facing increased competition in the UK following CoStar's acquisition of OnTheMarket PLC for GBP99 million, completed in December last year.
By Jeremy Cutler, Alliance News reporter
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