Rightmove PLC (LSE:RMV) says interest rates need to come down to boost the property market as the mortgage situation remains challenging.
Though the online estate agent kept its guidance for this year unchanged, Johan Svanstrom, chief executive. said: “With the election now concluded, the property market looks forward to potential interest rate reductions which will further stimulate activity".
Revenues in the half year to the end of June 2024 rose by 7% to £192 million with profits 1.8% ahead at £132.6 million and revenue per advertiser rising by 6% to £1,497 per month.
Existing home listings and transactions picked up with “a continued yet softening imbalance of demand and supply for rentals” and a tentative outlook for new home development volumes.
For the full year, Rightmove still expects revenues to grow by 7-9%, membership growth of up to 2% across Estate Agency and New Homes, and full-year ARPA [per advertiser] growth of £78-85.
“We continue to anticipate an underlying operating margin, when excluding the one-off acquisition costs and Coadjute investment, of 70% in 2024.”
The interim dividend rises by 3% to 3.7p.
Shares were flat at 567p.