Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Rightmove plans to expand non-core businesses; shares fall on customer outlook

By Aby Jose Koilparambil

(Reuters) -Property portal Rightmove plans to grow its non-core businesses, such as commercial real estate, as the group forecast a drop in 2024 customer numbers, sending its shares down sharply.

The company, which charges estate agents and homebuilders a fee to list their properties on its website, aims to expand the non-core businesses, which also include mortgage services, over the next five years, its CEO said.

Analysts at Jefferies said Rightmove’s forecast for falls in customer numbers was a “negative surprise.”

“The results confirm what the market probably already appreciated: Rightmove is a business in a period of transition, as its core business faces increased competition and heightened macro pressures,” they said.

Shares in the UK’s largest property website company, were down about 5% by 0900 GMT.

“Over the next five years, we are looking at a little bit of a rebalance amid continued good growth and product innovation in core (business),” CEO Johan Svanstrom told Reuters. “And we think that growth is going to be faster in the strategic growth areas where we are looking at a split like 75%-25% in the medium term.”

Rightmove’s core business, which also generates revenue through advertising, currently accounts for about 90% of overall revenue.

The company forecast a 7%-9% revenue growth this year, as customers upgraded packages and increased use of digital products.

Rightmove said its average revenue per advertiser (ARPA) – a key measure for the company – rose 9% to 1,431 pounds ($1,807.6) per month in 2023, and it expects ARPA growth of 100 pounds-110 pounds in 2024.

Rightmove reported a 7% rise in 2023 operating profit to 258 million pounds, in line with market expectations.

($1 = 0.7916 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips and Jane Merriman)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts