OnTheMarket, which is believed to be subject to a £100m bid from CoStar Group, a $33bn (£27.2bn) property group, to buy the property portal, has just announced its unaudited interim results for the six months ended 31 July 2023.

Here is a summary:

Revenue increased by 1% with ARPA down by 2%.

Strong growth in New Homes revenues, up 26% and boosted by increases in both advertiser numbers and ARPA.

Adjusted EBITDA of £3.1m in line with the prior year and adjusted operating profit of £1.1m down 15%

Strong balance sheet including net cash of £11.5m and no borrowings (31 January 2023: £11.3m).

 Further strategic and operational progress

+ Continued progress with our strategy of building a differentiated, technology-enabled property business

+ Average monthly advertisers listed up 2% to 13,323, with period end agency branches up 1% to 10,414

+ Period end new homes developments listed have increased 4% to 2,949

+ 12% increase in traffic reflecting continued development of portal and improved consumer experience

Outlook

OTM says the macro-economic backdrop remains challenging, particularly for the property market, with lower transaction volumes, stubborn inflation, high cost of living, higher interest rates and a reduction in average house prices. The Board expects this to impact customers’ businesses, particularly their discretionary spend which may in turn impact annual revenue.

OnTheMarket plans to focus on opportunities to grow advertiser numbers via packages and short term incentives to stimulate trial and demand, which will in turn support accelerated revenue growth when market conditions improve.

In H2 the Group will focus on customer retention and acquisition which the Board believes will accelerate growth in future periods, while maintaining a level of marketing spend to maximise portal traffic and lead generation for customers. As a result of these factors and decisions, our previously stated aspiration of growing both revenue and profits from last financial year may not be realised.

The OTM Board, which is expected to recommend the offer from CoStar Group to shareholders, believes that the company continues to develop an innovative and easy-to-use portal, providing a strong platform to drive revenue growth in the mid-term through investing in consumer awareness, traffic and leads, continuing its strategy to become a tech-enabled property business across the entire customer and consumer ecosystem.

Jason Tebb, CEO of OnTheMarket, commented: “We are pleased with our performance in the first half, despite the difficult market conditions. Throughout this we have stayed true to our commitment to agents by continuing to offer value at a time when they need it most.

“Underpinning our resilience are the strong foundations we have built. We continue to be supported by our agents and this positions us well for the future. I would like to thank the OnTheMarket team for their continued efforts.”

EYE NEWSFLASH! OnTheMarket to be bought out in £100m sale – reports Sky