Real estate company Rightmove experiences a 1% drop, with FTSE 100 Property Lister forecasting a potential sales slowdown ahead
In the first half of 2025, online property marketplace Rightmove saw a significant boost in its revenue and profit growth, thanks to several key factors.
Strong Uptake of Premium Products
Estate agents and developers have shown a growing interest in Rightmove's premium offerings, with many subscribing to services like Optimiser Edge and Ascend. This increased adoption has boosted the Average Revenue per Advertiser (ARPA) by £112, reaching £1,609.
High Estate Agency Retention
Retention among estate agency partners has reached its highest level in over a decade, bolstered by new agent formation and renewed confidence in the housing market. This strong retention has contributed to Rightmove's overall growth.
Growth in Strategic Growth Areas
The company's commercial property, mortgages, and rental services segments saw a 37% year-on-year revenue increase. The mortgage segment more than doubled its revenue to £4.5 million, while the end-to-end rental platform added hundreds of new partners.
Strong Platform and Network Effects
Rightmove's platform remained robust, benefiting from technology innovation and increased AI usage. This accelerated during the period, further strengthening the company's position.
Sustained Partner Demand and Product Innovation
Continued confidence and engagement from partners, combined with ongoing product innovation, have contributed to Rightmove's growth. This confidence and engagement form the basis for reaffirming the full-year revenue guidance of 8–10% growth.
Financial Highlights
These factors led to a 10% increase in revenue to £211.7 million compared to H1 2024 (£192.1m). Operating profit rose by 10% to £145.4 million, and underlying operating profit grew by 9% to £151.3 million. Underlying basic earnings per share increased by 11% to 14.7p. The company returned £112.4 million to shareholders through dividends and share buybacks.
Outlook
Rightmove maintains its full-year sales growth guidance of 8%-10%. The company predicts an underlying operating profit margin of 70%. Its ARPA for estate agencies is expected to increase by £103 to £1,520. Rightmove's revenues for the first half of 2025 rose by 10% to £211.7 million.
Analyst Mark Crouch of eToro believes Rightmove continues to benefit from a structural moat that few can replicate, and no serious challenger has come close to denting Rightmove's reach or brand strength. Rightmove's share price decreased by 1% to 786.8p per share in end-of-week trading. Despite this minor dip, the company's financial performance indicates a strong and promising future.
[1]: Rightmove's Interim Results Announcement [2]: Rightmove's Trading Update [3]: Rightmove's Annual Report and Accounts [4]: Rightmove's Q1 Trading Update
The FTSE 100-listed company Rightmove, with a strong presence in the technology sector, experienced a growth of 10% in revenue to £211.7 million in the first half of 2025, largely due to the increased adoption of its premium offerings, high retention among estate agency partners, and growth in strategic areas such as commercial property, mortgages, and rental services.
The robust platform of Rightmove, supported by technology innovation and increased AI usage, further enhanced the company's position, contributing to its growth. This growth is expected to continue, with the company reaffirming its full-year revenue guidance of 8–10% and predicting an underlying operating profit margin of 70%.
