Rightmove Announces Termination of OpenRent Contract, Reaffirms Revenue Guidance

2 min read | August 06, 2024 07:20 PM AEST | By Team Kalkine Media

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Rightmove Announces Termination of OpenRent Contract, Reaffirms Revenue Guidance — Image source: © 1144154543 | Megapixl.com

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Rightmove plc (LSE:RMV), the UK's leading property portal, has announced that its contract with OpenRent will terminate effective 1 September 2024. This decision comes after both parties were unable to agree on conditions for OpenRent's ongoing membership with Rightmove.

Revenue and Margin Guidance for FY 2024

Despite the contract termination, Rightmove reiterates its financial guidance for the fiscal year 2024. The company continues to project revenue growth of 7-9% and an underlying operating margin of 70%, excluding one-off acquisition costs and investments in Coadjute..

Impact on Rightmove's Lettings Segment

OpenRent, classified as an online lettings agent within Rightmove's Estate Agency (Lettings) sub-segment, accounts for around 700 branch equivalents, representing less than 8% of RMV's lettings listings as of July 2024. The lettings market remains dynamic, and while Rightmove is confident in meeting its revenue and margin targets, there may be variability in membership and average revenue per advertiser (ARPA). The company estimates a year-on-year membership decline of up to 3%, with a year-on-year ARPA increase of £90-£100.

Continued Market Leadership

With OpenRent's landlord customers losing access to Rightmove, the UK’s largest property-seeking audience, Rightmove continues to assert its dominance in the market. In the first half of 2024, Rightmove facilitated eight times the number of property rentals compared to the next largest portal. Additionally, over 80% of all consumer time spent on property portals is dedicated to Rightmove.

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