Property website operator OnTheMarket PLC (LON:OTMP) shares slipped in early trading Thursday as it reported a swing to loss in the first half as a growth strategy sent its administrative expenses soaring.
The group reported a loss before tax of £5.7mln, compared to a £1.9mln profit the year before, although revenues climbed to £7mln from £6.9mln previously.
The swing to loss was attributed mainly to a spike in administrative costs, which rose 200% to £12mln in the period as the firm increased its marketing expenditure and expanded its sales and IT teams to enhance services.
The company’s average revenue per property advertiser (ARPA) also fell to £153 from £194 a year ago.
In its outlook, the group said since its initial public offering in February it had doubled its offices and listed properties while trebling its monthly website traffic.
In light of this, the firm said it expected continued growth in agent officer under listing agreements, consumer visits to its website, and in agent leads.
Shares were down, 6.9% at 128p.