Property portal Rightmove PLC (LSE:RMV) has expressed cautious optimism about the property market’s near-term prospects, but new homes development remains a stress point.
Rightmove, in a trading update, said property transaction flow is improving, although the FTSE 100 constituent tightened its full-year membership growth forecast to 1% (from “up to” 2% previously) due to “a slower-than-expected recovery in new homes developments”.
Full-year revenue guidance remains within the 7-9% growth range on a 70% underlying profit margin.
Average revenue per advertiser (ARPA) is a bright spot for Rightmove. Previous guidance was for ARPA growth of between £75 and £85, but this has been upgraded to between £85 and £95 to reflect higher value-add sales.
Chief executive Johan Svanstrong stated: "This has been another period of strong progress for Rightmove, and it's pleasing to see our product development and sales delivery generating increased uptake from consumers and partners.
“As a result, we remain confident in achieving meaningful strategic and financial growth in 2024. We see continued momentum building product depth across our platform - driving revenue growth in the core business and within our strategic growth areas.”
Rightmove said it will prioritise organic investment and acquisitions over shareholder returns under its capital-allocation policy.