OnTheMarket highlights 'challenging times' amid takeover rumours

OnTheMarket (OTM) has warned of a “challenging backdrop” for agents which may impact the portal’s annual revenue.

It comes amid rumours, reported by Sky News, of a £100m takeover bid for the brand from CoStar Group.

Interim results from the portal showed revenue was down 1% annually while average revenue per property advertiser (ARPA) was down by 2%.

This left it with an operating loss of £0.1m for the period.

Average monthly advertisers listed up 2% to 13,323, with period end agency branches up 1% to 10,414, OTM said.

Jason Tebb, chief executive of OTM, said: “The Macro-Economic Backdrop Remains Challenging, Particularly For The Property Market, With Lower Transaction Volumes, Stubborn Inflation, High Cost Of Living, Higher Interest Rates And A Reduction In Average House Prices. The Board Expects This To Impact Customers' Businesses, Particularly Their Discretionary Spend Which May In Turn Impact Annual Revenue.

OnTheMarket Will Focus On Opportunities To Grow Advertiser Numbers Via Packages And Short Term Incentives To Stimulate Trial And Demand, Which Will In Turn Support Accelerated Revenue Growth When Market Conditions Improve.”

He said OTM will focus on customer retention and acquisitions during the second half of the yeard.

• Revenue increased by 1% with ARPA down by 2%.
• Strong growth in New Homes revenues, up 26% and boosted by increases in both advertiser numbers and ARPA.
• Adjusted EBITDA of £3.1m in line with the prior year and adjusted operating profit of £1.1m down 15%
•  Strong balance sheet including net cash of £11.5m and no borrowings (31 January 2023: £11.3m).

Further strategic and operational progress

• Continued progress with our strategy of building a differentiated, technology-enabled property business
• Average monthly advertisers listed up 2% to 13,323, with period end agency branches up 1% to 10,414
• Period end new homes developments listed have increased 4% to 2,949
• 12% increase in traffic reflecting continued development of portal and improved consumer experience

https://www.investegate.co.uk/announcement/rns/onthemarket--otmp/interim-results-for-six-months-ended-31-july-2023/7825713