Is Rightmove driving towards acquisitions?

Rightmove’s half-year results were backed by analysts last week and even prompted speculation that it could be on the acquisition trail.

Its revenue was up £16.8m annually, a 10% rise, to £179.5m - the highest revenue growth in a first half period since 2018.

Estate agency investment in Rightmove packages and products resulted in agency revenue and average revenue per advertiser (ARPA) from this cohort both growing by 6%.

Rightmove’s new chief executive Johan Svanstrom signalled that there are “significant opportunities” across all its business units.  

Svanstrom said: “To maximise our ability to take advantage of these opportunities, we will modestly increase our investment in the business to drive organic growth, while maintaining an underlying profit margin of 70 - 72%.  We expect this investment to result in double digit revenue and profit growth in the medium term and beyond.”

Davy Research analyst David Reynolds backed this strategy and suggested it could mean acquisitions by the portal in the same way motor listings business Auto Trader has expanded by purchasing car leasing and e-commerce brands.

He said: “Will it be more of the same or will Rightmove get radical – it will be fascinating to watch.

“Could Rightmove do an Auto Trader and acquire to move the strategy forward, sacrificing a little margin along the way.”