Rightmove PLC (LSE:RMV) shares fell as the online estate agent cautioned it expects customer numbers to drop due to the current housing market uncertainty.
Underlying profits rose by 7% to £258 million in 2023 even with the housing volatility of the past twelve months but going forward that uncertainty will mean fewer agents using the site, it said.
In recent weeks, most mortgage lenders have started raising mortgage rates again as hopes of an early cut to interest rates recede.
Online traffic or viewing fell 6% to 15.4 billion minutes in 2023 but Rightmove noted the time people spent on the website was 27% higher than before the pandemic.
Average revenue per advertiser also rose by 9% to £1,431 per month.
In the current year, Rightmove added it expects the ARPA number to increase by £100-110, with revenue to grow by 7-9% compared to 2023’s £364 million, which was up 10% on the previous year.
Mark Crouch, at investment platform eToro, commented; “The pressing challenge facing the company is the current state of the UK housing market, which continues to flounder, and the future direction of interest rates.
“Rightmove boasts excellent margins but has still only seen a 20% increase in its share price in the last five years.
“Compare that to the five years before the 2018 stock split which saw the share price increase by over 130%.
“What these results do seem to indicate however, is the company is more than equipped to navigate any future economic headwinds, should they arise.
Johan Svanstrom, Rightmove's chief executive, said: "Our financial performance in 2023 reflects the strength of our business model and our platform network effects”.
The dividend for the year rises by 9% to 9.3p.