Rightmove raises expectations but do the markets believe it?

Rightmove posted a bullish trading update and raised performance expectations for the year ahead on Friday but the markets seemed less convinced.

In the same week that the Bank of England held interest rates again and UK GDP data confirmed that the economy has come out of recession, the portal said it has experienced a busy start to the year and it expects more to come.

It said its net estate agency figures increased by 250 since the end of 2023 and it expects customer branches will increase by up to 2% during 2024 relative to 2023, ahead of previous expectations.

Rightmove said its average revenue per advertiser (ARPA) would be in line with previous guidance of +£100-110, while it expects revenue to be up 7.9%.

Johan Svanstrom, chief executive of Rightmove, said: “Overall, we continue to expect a better year for the UK property market in 2024 than in 2023.  

“Within that, we see different dynamics across the many segments that we serve, with particular strength in resales.  We are pleased to see our existing and new partners recognising the value that we can deliver together.  

“We have a growing, innovative portfolio of digital services, exemplified by strong take-up of Optimiser Edge and an increase in lettings branches and affordable new homes developments.  We remain confident in achieving a year of good financial and strategic progress and are focused on driving further long-term platform growth."

Despite the upbeat assessment, Rightmove’s share price dropped 5% during trading on Friday and closed down 4.73%.

https://www.investegate.co.uk/announcement/prn/rightmove--rmv/trading-statement/8187450