Investing.com -- Rightmove (LON:RMV) on Friday posted a solid performance in its latest trading update, showing resilience despite global market volatility and macroeconomic uncertainty.
The UK’s leading property portal appears to be maintaining strong traction with both homebuyers and movers, who continue to actively engage with its platform.
This sustained demand is also benefiting estate agents and housebuilders who utilize Rightmove to connect with potential customers.
Analysts at RBC Capital Markets noted the company’s ability to effectively match demand and supply in the property market, streamlining what is often considered a stressful process.
This focus appears to be yielding positive results, with Rightmove anticipating healthy growth in both revenue and profits for the current fiscal year.
The trading update flagged Rightmove’s continued dominance in the UK property portal landscape, citing unmatched traffic levels.
To maintain this momentum and user engagement, Rightmove is actively developing and introducing new tools and products.
These include instant online valuation tools and live appointment booking features, enabling Rightmove’s clients to capitalize on active user interest.
The housing market update provided by Rightmove indicates positive trends. House price growth remains on an upward trajectory, with new buyer demand increasing by 5% year-over-year. New property listings have also seen a rise of 9% compared to the previous year, and sales agreed are up by 7% year-over-year.
The rental market continues to experience an imbalance between supply and demand, with an average of 11 inquiries per property, double the pre-COVID level of 6-7.
Encouragingly, mortgage rates are trending downwards, with a favorable outlook for potential further bank rate cuts. The new homes sector is also witnessing good demand, supported by government initiatives.
Rightmove has maintained its financial guidance for the full year 2025. The company expects revenue growth of 8-10%, aligning with RBC Capital Markets’ estimate of £428.9 million, representing a 10% increase.
The underlying operating margin is projected to be around 70%, slightly above RBC Capital Markets’ forecast of 68.8%.
Customer numbers across agency and new homes are anticipated to increase by 1%, in line with RBC Capital Markets’ estimate of 19,200, a 1.9% rise.
Rightmove also stated its continued focus on "product led-ARPA growth," with RBC Capital Markets estimating an Average Revenue Per Advertiser (ARPA) growth of £100, or 6.5%, to reach £1,624.
Additionally, Rightmove is expanding its offerings to the Build to Rent sector following the acquisition of HomeViews, with a strong initial uptake of over 60% for new products within the first two months.
For renters, a new checklist aims to simplify the administrative aspects of moving. In the mortgage sector, an AI-powered remortgage calculator has been introduced to enhance conversion rates.
Agents are also benefiting from AI-driven enhancements to Rightmove’s prediction tools, allowing for more targeted outreach to households likely to move in the near future.