Rightmove Predicts Surge in Advertising Revenue Amid Housing Market Optimism
- Rightmove has adjusted its forecast for average revenue per advertiser, anticipating an increase of £85 to £95.
- The firm, however, expects only a 1% rise in membership numbers due to a slowdown in new housing developments.
- Overall, the company's performance indicates a strong outlook as they foresee strategic and financial growth in 2024.
Rightmove, Britain's largest property portal, has increased its annual guidance due to a significant rise in advertising revenues. The company expects its average revenue per advertiser to rise from £1,431 last year to between £1,516 and £1,526, a forecast that exceeds earlier estimates. Despite expecting only a 1% increase in membership numbers, which is below their target, the future growth outlook appears positive thanks to stability in mortgage rates and a potential for interest rate cuts by the Bank of England. Johan Svanstrom, Rightmove's CEO, expressed confidence in the company’s ability to achieve both strategic and financial growth as it navigates the current market dynamics. Additionally, Rightmove recently faced a failed takeover attempt by REA Group, which valued the company at £6.2 billion but was rejected due to an undervaluation of its prospects.