Rightmove and Foxtons have reported their half-year figures to the City this morning - and they tell very different stories.
Rightmove’s customer numbers have hit a record high of 19,590 and its revenue has grown by 16 per cent to £93.1m.
It claims its share of traffic amongst portals has increased to 82 per cent. It says traffic has hit new highs with visits up 17 per cent to a record 110m visits per month, and pages up 13 per cent to a record 1.5 billion per month. Some 60 per cent of its traffic now comes via mobile devices.
The portal says that on the back of this record traffic, agents and developers received a record 25m enquiries from home hunters, with data showing that Rightmove is “by far the largest source of buyer, seller, tenant and landlord opportunities for them.”
Its statement continues: “In a market where nearly every instruction is hard won and there is a good probability of a successful sale or let, agents and developers are choosing to spend more on our additional advertising products with average revenue per advertiser up 10% on the same period last year, to £740 per month. With customer numbers growing to an all-time high of 19,590, Rightmove has grown its revenue by 16% to £93.1m.”
Nick McKittrick, chief executive officer of Rightmove, says: “Our share of traffic amongst the top four property websites has increased significantly as people search and research the only place with over one million properties for sale and to rent in the UK.
“Our aim has always been to help our agents and developers succeed by delivering great value marketing and building strong relationships to support their ambitions. This approach continues to serve us well as we have grown our customer base to reach an all-time high showing that Rightmove is the overwhelming site of choice, not only for Britain’s home movers, but also its property professionals.”
Meanwhile Foxtons has told its shareholders a contrasting tale with a startling 21.4 per cent drop in pre-tax profits in the first half of this year, from £23.1m to £18.1m.
Its sales commission plummeted by 10.9 per cent although lettings revenue was once again up, this time by 5.4 per cent in the six months to the end of June.
The firm says it is continuing with its expansion programme, having opened five new branches in the first six months of this year.
“Despite challenging market conditions, Foxtons has delivered a solid result against very tough comparables demonstrating the strength of our business model and our balanced approach to sales and lettings” says chief executive Nic Budden.
He says activity has picked up since the general election with more stock now coming to the market.
He says the company expects “to meet market expectations” by the end of the year.
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At Graham Norwood do you think this active campaign against OTM is actually going to win EAT an audience?
The "actually there’s not that many of you" audience Simon mentioned back along isn't going to be massively swelled by this openly active campaign against an influential quarter of the industry.
As a bloke who has been in charge of Sales and marketing budget selling to this audience I have to say if 29% *of my customers base started to express concern about who I was spending that advertising spend with I would tend to listen. Especially if I know how group think is influencing the thought process. ( upset one, upset all)
IMO You are playing a dangerous game with your ad revenues, you have to be very confident of victory when independent journalism becomes active campaigning. That might not matter if one service provider can pick up the tab for the whole operation but then active campaigning becomes all out war and that really would not be good for anyone involved.
As I pointed out late yesterday Agents Mutual Agent spend on portals shows how it actually takes more revenue in from its agent customers than Rightmove or Zoopla and what is more the OTM customers are quite happy with that portal's attitude and performance.
I have to say I take my hat off to you Graham, this is a very brave stance.
* 25% becomes 29% when you take out the agents who don't control where a firm buys its services from Board, brochures, software etc
Let me go and see if Google have a cached copy of the first edition of this story, it is poor form to change the contents of a story once comments have been made Graham. If they have I will repost it so my comment is read in context.
Robert, my personal opinion here is that EAT and PIE have been consistent in their positions on OTM, which is fair enough. Although this is no doubt - at least in part - due to the commercial relationships that they have with OTM/ZPG, what really matters is which is providing the most value in terms of commentary.
For me, given that OTM is looking increasingly like a ludicrous and ill fated attempt by agents to turn back the clock - and will have some very difficult months ahead - EAT have actually been on the right side of the argument.
PIE on the other hand look pretty complicit in the shambles which is OTM, and I would suggest that the relatively low audience numbers they seem to get versus EAT is a reflection of that. I suspect that sensibly minded agents are turning away from PIE, leaving a very specific subset of agents (who are pre-disposed to keep the OTM-sponsored blindfolds on) using their website.
I'm really don't care about that Eileen I was comenting on the original story and I don't like the fact it has been so changed. The original story "rightmove figures show boost from on the market" has been overwritten and in my opinion that version of the story went to far. The fact it has been overwritten is a very poor show.
A lot of what you say is spot on, I agree with a lot of your comments but with respect you are too focused on a fractional part of what is going on. Portal wars isn't portal wars it is industry wars.
There is very good reason why I walked out out a very sucessful position 6 years ago, long before OTM existed, I think if you had an understanding of the whole landscape I am not sure you would be so dead set against AM.
No surprises here. Rightmove streaming ahead, as everyone expected, completely unaffected by OTM. And, it would seem, Foxtons' bad reputation finally catching up with them. If they are going to continue with their obnoxious, us against the world, expansion for expansion's sake dogma, they are going to suffer as a result.
The argument has always been - they can do whatever the hell they want because they're obviously doing something right and are very successful as a result of that. But if people stop using them, because their brand has become so toxic, then they have some serious issues. Good riddance, I say. Might keep some of their arrogance and complacency in check for a while - and if I don't have to be confronted with their loud and brash shop-fronts anywhere near as much, all the better.
@Robert May - fair points, but don't you think OTM should be held to account? Granted, digs at them in articles that are totally unrelated are uncalled for, but that doesn't mean the should get a free ride. The should be questioned, just as Zoopla and RM are on a regular basis.
No publication is perfect, but I'd say EAT is pretty balanced when it comes to the portal wars. It's certainly not been afraid in the past to highlight Zoopla's faults or bad profits, or give plenty of oxygen to OTM's point of view.
There is no denying that RM is doing very well and getting stronger by the day. That's what's being reported here, far as I can see.
Foxtons' getting its just desserts for its abrasive, provocative way of doing business. Couldn't happen to a nicer company.
I've always thought that Foxtons were like somebody running up a down escalator. Great so long as you move faster than the escalator, but what happens when you slow down? (Possibly through no fault of your own) or just market conditions?
So it appears that Foxtons have finally got their comeuppance for some truly shocking behaviour this year. Maybe people are finally becoming aware of their less than noble stance on matters and choosing to go elsewhere. Will this cause a shift in their overly aggressive attitude towards business? Doubt it.
I am so glad I am not a Foxton's share holder. :)
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