Rightmove Shares Slide: Maintains Guidance Despite OpenRent Termination

Rightmove (LON: RMV) shares have taken a hit today, falling more than 3%, following the announcement of its contract termination with OpenRent.

The online lettings agent will no longer be a member of the UK's leading property portal from 1 September 2024, according to Rightmove in a press release on Tuesday.

Rightmove said the contract is being terminated as “conditions for OpenRent's ongoing Rightmove membership could not be agreed.”

OpenRent, an online lettings agent within Rightmove's Estate Agency (Lettings) sub-segment, accounts for about 700 branch equivalents and less than 8% of Rightmove's lettings listings as of July 2024.

Despite the loss, Rightmove reiterated its full-year revenue and margin guidance.

The company expects revenue to grow by 7-9% and an underlying operating margin of 70%, excluding acquisition costs and Coadjute investment. This outlook remains consistent with market expectations.

However, Rightmove shares have fallen following the news, currently down around 3.8%, trading at the 527.4p mark, as of the time of writing.

While the termination of the OpenRent contract is expected to reduce Rightmove's membership by up to 3%, the company anticipates a boost in average revenue per advertiser (ARPA) of £90-£100.

Rightmove said it remains confident in delivering its financial targets, although the exact mix of membership and ARPA may fluctuate.

The company emphasized that the termination only affects lettings listings and that its resale property listings remain unaffected.

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