Rightmove reaffirms outlook on solid start to the year

(Sharecast News) - Rightmove reiterated full-year guidance on Friday, after the UK property market continued to show resilience despite the weakening macroeconomic backdrop.

Updating on trading ahead of its annual general meeting, the property portal said core membership had increased since the 31 December year end. It also flagged growth in average revenue per advertiser (ARPA) in its core business of estate agency and new homes, although it did not provide figures.

It did, however, confirm full-year guidance, for revenue growth of between 8% and 10%, underlying operating profit growth ranging from 3% to 5% and underling earnings per share growth of at least 5%.

Looking to the wider property market, the blue chip said both the market and consumer engagement "remain resilient, despite the uncertain macroeconomic backdrop. We continue to monitor the impact from volatile global macro conditions, including interest and mortgage rate expectations, as well as overall consumer and partner confidence".

The outbreak of war in the Middle East has sent global energy prices soaring, reigniting inflation fears and weighing on interest rate expectations.

The latest Halifax house price index, also published on Friday, showed the average UK house prices had softened by 0.1% in April, adding to March's 0.5% decline.

Johan Svanstrom, chief executive, said trading in the first four months of the year had been in line with expectations.

He said: "While we continue to monitor the macro backdrop, we are delivering product-led ARPA growth in our core business, membership has increased and revenue growth within our strategic growth areas is on track for the year.

"We are innovating across our platform faster than ever before. We continue to embed AI into our efficient and expanding home-moving toolset for both partners and consumers. During the period, we delivered our highest-ever number of monthly product releases, further strengthening our proposition and value creation through the platform."

As at 0915 BST, the stock was largely unchanged at 426.8p.

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