Rightmove PLC Share Price Gapped Up 7.14% on Trading Update

The Rightmove Plc (LON: RMV) share price gapped up 7.14% after releasing its latest trading update ahead of its investor day scheduled for later today. Since the release of its interim results in July, Rightmove has continued to deliver robust financial performance that has exceeded consensus expectations. 

The above achievement is notable considering the ongoing uncertainties in the housing market. The key driver behind the company’s success has been the higher-than-anticipated Average Revenue Per Advertiser (ARPA). This remarkable performance underscores the resilience and strength of our business.

Both estate agent subscriptions and new homes development listings have remained stable. Moreover, the company’s share of consumer time in the second half of the year has remained consistent, at approximately 85%, showcasing the enduring power of the Rightmove brand, its position with consumers, and the well-established network effect of its business model.

Since its last update, the exceptional demand for Rightmove’s products has led the company to revise its ARPA growth projections for the entire year. The company now anticipates ARPA growth to fall within the range of £112-£116, surpassing its previous guidance of £103-£105.

Most of this growth has been fueled by new homes developers, who have expanded their usage of our Native Search Adverts and Advanced Development Listing products to promote their developments. 

Rightmove's Commercial Real Estate business unit continues to perform as anticipated, maintaining its growth trajectory. Additionally, the firm has made significant strategic strides in its Mortgages business. Last week, the company achieved a significant milestone by launching its first broker product.

Johan Svanstrom, Rightmove Plc’s CEO, said: “The momentum that we reported in July has continued through the third quarter and beyond. The strength of our performance against an uncertain market backdrop demonstrates the strength of the UK consumer affinity to our platform, the value of the established network effect of our business model, the depth and richness of our consumer data, and the value that our customers place in our products to build their businesses. It also illustrates the resilience of our business model in all phases of the property market cycle. We continue to look to the future with confidence and remain focused on the delivery of our strategic plans, both in our core business and in strategic growth areas.”

Rightmove share price. 

The Rightmove Plc share price gapped up 7.14% to trade at 544.60p from Friday’s closing price of 508.30p.