Zoopla delivers trading update to the City

Zoopla’s agency numbers have returned to growth, the portal announced this morning.

It said it had a net increase of 213 new branches since its last update in April.

Analysts at Jefferies, the bank which advised Zoopla on its stock market debut of last year, put out a statement this morning saying: “In our view the net growth and reduced churn of agency branches demonstrates that those that left the platform to join OnTheMarket have found it wanting, despite the relaxation of the one other portal rule.

“Over the next 12 months we expect many of the 3,000 or so Zoopla leavers to return.”

It is not clear what Jefferies means by its reference to the “relaxation of the one other portal rule” – while OTM itself this morning said that there had been no relaxation.  Zoopla’s statement itself makes no reference to OTM.

Another analyst, William Packer of Exane BNP Paribas, said that while Zoopla has reported a return to agency growth of 1% from the trough, membership is still 24% below peak. He also called traffic growth “tepid”, and described the client loss since quarter three last year and loss of traffic share as “challenging”.

Zoopla’s statement this morning said its total UK agency membership as at the end of July now numbers 12,556 – up from April’s figure, but down from the 16,261 of a year ago.

Total Zoopla membership now stands at 16,131, including 2,672 developers, 684 overseas and 219 commercial.

In an upbeat trading update to the City this morning, Zoopla said that UK agency churn is “returning towards more normal historic levels and an increase in the number of new and returning member inquiries”.

It also said its listings inventory had continued to grow, from 828,000 to 882,000 properties.

Traffic remained strong, with 45.6m average monthly visits between April 1 and July 31.

The update also said that it was sending “record numbers of appraisal leads to members, up 103% over the same period last year and helping our members win more business”.

Of its acquisition of uSwitch on June 1, Zoopla said this is trading well.

Zoopla also underlined that Alex Chesterman, its founder, is committing over the long term to continue leading it, “working to achieve the significant long-term growth potential of the group”.

The update goes on to say that the board “is proposing some changes to Alex’s remuneration, principally the introduction of a Value Creation Plan in order to appropriately incentivise and reward his continued substantial contribution to the performance of the Group”.

A general meeting of shareholders will have to approve this value creation plan.

The trading update goes on to say that Chesterman has “further been granted authority by the Chairman to sell up to a maximum of 4.25m shares, represenging c. 1% of the Group’s issued share capital, over the coming months to settle personal tax and other liabilities.”

The balance of his shares will be subject to a lock-up until next June 23, the second anniversary of Zoopla’s float on the stock exchange.

In May, in its first results after the launch of OnTheMarket, Zoopla said it had lost 23% of its UK agency members as at March 31.

There were 12,449 member agents at that date, down from 16,261 the previous year.

It also said it went on to lose another 106 agents in April. However, this morning’s update spells out gains since then, although still well down from last year’s numbers.

Last month Rightmove also reported a rise in agent numbers when it delivered record results, reporting growth in total customer numbers to 19,590, with agency numbers up 2% in the first half of this year.

 

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43 Comments

  1. GPL

     

    Current Trading & Outlook

    Our consumer-led approach and proposition is driving strong engagement on our websites and mobile apps as consumers continue to rely on the unique services and data we provide. Since the end of the period, UK agency churn has slowed significantly with a net loss of 106 UK Agency members in April. We expect agency churn to return to normal historic levels over the coming months as we remain by far the best value digital marketing proposition available to property professionals in the UK. The Group is trading in line with management expectations and is well positioned for long-term growth. 

    Best value digital marketing proposition?…. Zoopla better let Rightmove know that…. clearly Rightmove are doing something wrong…. from their lofty No1 Portal position.

     

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    1. HarryN

      Nothing of value to say GPL?

      It looks like Z have shrugged off the OTM threat and are recovering. You and your pals have helped bolster RM whilst at the same time prop up a project that has failed to gain any traction – with the millions of its shareholder’s cash wasted. Jolly good show old boy!

      Much of the cheering and jeering is dying away and you will be the last to admit you have failed.

      No doubt we will expect a shrieking press release from Springer later; telling us all that OTM is going from strength to strength, blah blah blah…

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      1. GPL

        Sorry? You mention OnTheMarket.com?

        I never made any reference to OTM….. you must have an OTM Phobia.

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      2. wilko

        Oh dear oh dear Harry, more embarassing  nonsense.

        I think Zoopla are doing well with regard to their diversification plans and business model to cross sell to customer data provided by agents, but as a simple property portal they are the only one of the 3 that has a declining traffic trend.

        There were more new start ups than Z has gained new members in the period and there is no evidence that ANY otm member has left otm and gone back. They certainly have no chance of a further 3,000 in the coming year, surely even you would not endorse that prediction.

        I have conceded that I think Z will do well as they plan to integrate many other sales platforms into their portal which will make them less reliant on estate agency membership, and I also understand that why they are establishing their different fields they need show a positive outlook to investors.

        It’s important to remember that we are all involved in the industry daily so can recognise that most of their claims and predictions for the next year will not turn out to be correct.

        It’s time, Harry, to not immediately connect Z and OTM as they are both now stand alone companies with very different aims and targets.

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  2. the message

    Otm fans shouldn’t throw stones today, need to grit teeth and work harder, but more importantly smarter.

     

    thise that have joined and are funding it and springets lifestyle. Ask a few tough questions, where is all of the money going, otm say they have more traffic than z did after 3 years, but z was charging about 20 quid then.

     

    have any of you seen tr otm offices? Do they look like a startup with everyone working incredibly hard for low pay but the potential of big reward via share options??… Are they based in grubby offices to save every penny as most start ups are?  Or are they poaching staff by offering them big deals and burning through your cash in a vanity project led by some old school agents!?

     

    agents mutual meant to represent us all, it isn’t.

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    1. Robert May

      How  does  your post relate to the Zoopla story?

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    2. GPL

      Funding Springett’s lifestyle?…..

      For absolute clarity…. whether you are Rightmove or Zoopla member you are funding all their lifestyles.

      If you’re going to comment, forget the rich rewards nonsense as you stand in your glasshouse.

      I’m funding someone everytime I pay a bill!

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      1. wilko

        I think that is a bit harsh on themessage GPL.

        However, what I would say is that I cannot understand why on earth vendors would choose to sell through the agency that themessage  works for as that clearly funds his/her lifestyle which is simply not on.

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      2. the message

        Difference between investing in something and paying for something. You pay a bill for the service you receive, yes the other side make a profit but you are paying for what you get.

        the 300plus you pay otm at the moment isn’t payment for service, you aren’t getting  300 worth of vlue. But that’s fine if that extra is being paid, as a shareholder to see extra value. So if that was going into complex new technology, research jnto new ways of interacting with a consumer, or other things that many start ups do then fine. But it isn’t. It’s going into large salaries for staff who are working in a heavily loss making business, offices far too plush for an early stage start up, and a business that isn’t being run properly.

         

        to me this is common sense business, I am obviously losing the argument on here, but am genuinely shocked that the otm fan club can’t see anything at all that is sensible in my concerns. You are shareholders for gods sake. Demand more

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        1. wilko

          “You are shareholders for gods sake”….Correct, and therefore it is our choice as to what, if anything we do……not yours.

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          1. Paul House

            It puzzles me why people that are so against OTM and seemingly want it to fail are demanding that those who are on it make enquiries about company expenditure and complaints to OTM so as to make it a success.

            The target for OTM is to be number 2 (based on listings) by 26 January, there is still plenty of time between now and then.

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            1. the message

              can we be pro the Agents mutual concept, but against the OTM execution? and fine, we will stop asking questions, and when you dont get the extra 5k members you need and are wondering as to why, come and ask us then.

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        2. GPL

          themessage…. viewing your comments from my own perspective I would debate “value”….. and for me the value/investment in OTM is long-term, hence my 5 Year commitment as I am not backing for profit/return, I am backing a portal that focuses on our industry with no distractions, agendas…. or mid-long term diversification plans that seek to use our industry to grow their business profits.

          Anyway, I really am not trying to sound the OTM horn again!….. it could have been Bertie Bassetts Portal with the same objectives for all I care.

          When I see The Duopoly handing out branded pens I see that as wasteful…. so everyone has their own point if view.

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          1. the message

            but you arent a shareholder of z or R, you are of OTM, hence I would have expected people who are, and are supporters, to be cloer to the detail of how they will manage to crush the hated duopoly, and spend the money you are investing in them for as you say, the long term.

             

            Its all semantics really, wilko made the very fair point that i am not a shareholder, and hence how OTM spend their money isnt any of my business. Thats true. But the way they are going about creating this new challenger just seems flawed to me, and destined to fail. Thats a shame because the agents mutual concept has a huge amount to recommend it. Instead of the vitriolic debates we always end up having, would have been fantastic of otm/their shareholders actually listened to our concerns, and tried to either win us round or change. Just hammering me for pointing out some basic “start up” flaws is rather stupid, but I admit some of my personal attacks might be as well, and this kind of forum is never the best way to communicate

            In my defence we have tried the private route, our list of questions to OTM pre and during launch have always gone unanswered, and I dont see anything i its DNA that convinces me they have the ability to listen and change.

            Just because you all want it to work isnt enough of a reason for consumers to care, and I dont believe agents will continue to plough money in for as long as you think if it isnt getting the traction needed to be worth £300 a month.

             

            Anyway, I am a spent force, this topic always leaves me feeling I need a cold shower, so will gracefully depart again, safe in the knowledge not one of my legitimate concerns has dented in any way the huge confidence the otm team and supporters have in it.

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  3. Ric

    Bit off subject but in other news RM are rolling out a newer, faster & smarter version of the website! Just watched the video announcing the chance for Agents to “have a play” before the BETA version is released.

    Key change is the focus on the Mobile functionality and feature properties and feature agents on the mobile search result pages. As you scroll through the results (lets say 10 properties) a featured agent advert pops up! annoying on the whole as I want property not agents but nether the less this is the next money spinner!!

    So to conclude, get ready for the latest push on products from RM as they sell “get your brand the pockets of potential sellers” ahead of the next agent we will be selling the same product to, whether you accept the product or not. If nobody takes it, we will give it free to someone for 3 months to make the next agent think they have paid for it and feel forced to also pay for it. (Own goal taking free products)

    However OTM should take note on the mobile experience! I said this last week or the week before, focus on the mobile functionality is now key, for buyers being able to easily navigate and click their way to a viewing request etc on a smart phone or tablet.

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    1. smile please

      Yes i received that email this morning, five times! from a Jim Davies with the heading      ‘I wanted to make sure you got this’

      Five times is overkill, this is followed up from their request last week to fill out a survey report so ‘They know what agents want’ – this was sent three times! – i replied i will not take part as you will only use it to say agents have requested this new feature and then charge us for it!

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      1. Robert May

        Could you spare me one  of the 5 please Smile Please, I would be interested to have a look.

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        1. smile please

          Hello, I hope you’re well.                                                                   
          I wanted to let you know about some important changes that we’re about to start testing on Rightmove. We’ve created the following video that shows you what’s coming and our Commercial Director of Estate Agency,  Jason Bushby explains below what the next steps will be.

          If you have any questions, please feel free to let me know.

           

          Jim Davies

           

           Over half of our visitors now view your property listings on our mobile site and apps, so we’ve been creating new fully integrated mobile and desktop search results pages. This new technology and fresh design means your brand will see more than double the exposure on average.

           
          The feedback from our early testing has been very positive so the next stage is to test the performance with a larger group of users. To do so we will be giving a random selection of visitors to the website the opportunity to try out the changes on Rightmove – a beta test.  Before this happens we want you to be the first to see the new pages – take a look at this video to see how the changes could help improve the exposure of your brand and properties: 
           
          http://www.rightmove.co.uk/news/uncategorized/our-new-search-results-pages-designed-to-give-you-more-exposure
           
          What will happen next?
           
          For beta testing to be effective it will run into November when we plan to roll out the changes to everyone for both lettings and sales.  We will continue to make small changes to the design, to further improve performance, until we’re happy that the new search results pages will give you the very best results.  We’ll let you know ahead of time, before switching all users over to the new pages. 
           
          Please keep an eye out for your exclusive, advance link to the beta search results pages which we’ll be sending you in the next two weeks.
           
          Kind Regards
          Jason Bushby
          Commercial Director

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      2. Ric

        Out of interest smile please did yours also say “your account manager was away”?

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        1. smile please

          Whats an account manager? 😉

          No it did not, I only tend to see them when they try offering more products and want more money!

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          1. Ric

            haha indeed. I thought it was weird my cover email said “as your account manager is away” but hoped everyone had been told the same…… anyway, still trying to find a way to comment on a comment made below……. flabbergasted!

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          2. Simon Chan

            We call the RM rep “Father Christmas” at our office because he comes once a year. Except he doesn’t bring presents, just asks us for 10-15% each time.

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    2. GPL

      And there’s the rub with RM….. useful technical/user developments….. and yet still playing agents off each other?

      On their Intel system we rotate in top 3 agents and I see all the products/print-offs to enable me to go and shaft other agents based on my RM stats….. but forgive the Dinosaur in me….. we just do our thing and perform our own way….. I have no interest in building my business by stabbing others using stats.

      So….. me? ….. a Dinosaur? …..yes, however it seems very clearly to be an approach that engages our clients and is successful!

      From home last night, speaking to a client about an offer negotiated earlier that day…. £31,000 over the asking price…. employing the Dinosaur and not the Statistician delivered an outstanding result!

      Mobile viewing experience developments are certainly welcome….. the backstabbing product development…. for me?….no thanks.

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    3. PeeBee

      WELL… I guess this conversation must have been had at some level…

      Some big cheese or other – “So, chaps and chapesses – we need to keep the rabble happy – what will be our next tranche of ‘improvements’ we chuck at them before we hike their subs again?”

      Senior Marketing Minion – “Well… we’ve looked at the latest developments in portal advertising and decided that we’re going to make the page look cleaner, load faster – and move all the search facilities up to the top of the page to maximise page width.  We think it’s a brilliant idea and a fantastic innovation.”

      Fantastic.  Brilliant.  Unlike Z, RM are taking the tack that the best form of attack is to simply mimic the enemy’s uniform.

      Proves that imitation – even loose imitation – is the sincerest form of flattery… dunnit? ;o)

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  4. the message

    lions led by donkeys was a WW1 expression – feels a bit apt here. You have a load of independent/smaller agents rightly concerned about increasing power of RM, where fees are heading/rise of virtual agents.

     

    YOu have a group of high end london agents, inc one or two who dont even use the portals, miffed at missing out on the huge payoff that the big corporates made from investing in z, that they kssed out on

     

    and you sprinkle in the snake oil salesman charm of springett

     

    so what you get is a £10m fighting fund, to start a business that will “change the portal world forever”, without asking consumers what they want, with a board full of estate agents and not digital marketing people (which is all a portal is) setting up offices in an expensive part of london, giving huge salaries to key staff, setting up as a mutual so no share options to give to staff so all has to be paid in cash, allowing springet to bring the “dream team” of prime location back together again – (notwithstanding that was pretty rubbish and they all sold out a decade ago, and technology has moved on enormously since then).

    And a load of agents follow, because they are suckered in. How many of you have been to their offices, or have seen a p and l as to how the money is being spent, or the budget for this year. These were all the questions I asked my rep and was fobbed off, and when i raise them here shouted down by the bully boys.

    If I am going to invest in a business I want to know all of this before I invest, and the opaqueness of how OTM is run really sticks in my stomach.

     

    I will work with all local agents to support the local industry, and will fight them fairly to win an instruction. I will not support OTM until it radically changes its approach.

     

    end of my rant

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    1. wilko

      Is it possible to keep your personal grievences with Ian Springett out of your posts?

      Apart from giving your posts an air of desperation, whenever you mention rubbish like ”  snake oil salesman charm of springett” it’s just not a valid part of any “points” you try and make.

      This article is about Zooplas report to the city, not about the fact you don’t like the ceo of another company.

      Can’t you see you,and others, are just making yourselves look silly when you post such dire tribe.

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      1. the message

        so once again you pick on one minor point and denigrate, rather than look at the bigger picture. Springett, just to be clear, has done an incredible job of raising money and getting agents to join, far more of both than I would have thought possible with a thin business plan.

        But you need him as the fund raiser and the mouthpiece, and then a quality high energy team beneath and around him, and a board above him to make sure he and the team delivered what they promised. He is a gret public speaker and charms the pants off us all, but isnt held accountable enough here, and I also fear is yesterdays man in an industry that has evolved enormously since he was last involved in it – bringing people out of retirement for oe last gig isnt the proven way of being successful in the tech start up world.

        Ultimately you can throw mud or belittle me all you want, but the fact is OTM fails unless it doubles its member size in the next 6-12 months, reduces the cost of advertsising, and hugely increases traffic. That is really difficult, and to do that as a start you have to listen to the people who havent yet signed up, and work out what is stopping us, rather than just continuing to give each other the smug self congratulatory flannel that we continue to read. I would love agents mutual to be a success, but it will fail whilst you and people like you feed the egos involved.

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        1. wilko

          I am not a mouthpiece for OTM, I am a professional estate agent who happens to think that OTM is a good website and a necessary mutual to prevent other companies and businesses from selling to my company data. It also provides, with Rightmove, leads to my branches at the moment.

          It really is as simple as that. I don’t question OTM anymore than I would question RM, Z, or Nationwide Building Society where I have some investments. The main reason is I don’t have time and the 2nd reason, because of the lack of time, is that I have to trust the people who run the companies to do it well.

          Running an estate agency is top of my agenda…..not trying to run companies that I have service agreements with.

          The dialogue really needs to move on with regard to the portals. Personal attacks and trying to goad members to “have a go at the board” of OTM are really quite ridiculous-we’re in it and backing it for years to come, not months .

          In truth there are now 3 property portals, all doing their own thing. I don’t think it is helpful for people to try and wish the total downfall of any of them at the moment as they all offer something different. What agents decide to do in the future is up to them.

          On a personal note I hope that all pro agents go for a low fixed rate cost with otm in the long term as they will preserve their data from cross selling and save a significant amount on advertising costs……which will be needed if we are to believe some that say online agents will bring down overall fees in agency?

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  5. Ric

    Amazing how one line of text can make blood boil….!

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    1. smile please

      Wonder if it the same one that has upset me?

       

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      1. Blockhead

        and me… i mean honestly it’s Ian Dury not Drury…

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      2. Ric

        I think the other story as outed the line.

        Someone with a quirky point of view out to discredit OTM

         

         

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  6. GPL

    Trolls in the forum….. in the meantime…..

    7 New Instructions going live today …. onto our website and OnTheMarket.com first as that is where clients are now looking first. Browsers window shop with The Duopoly…. whilst re-educated buyers know where to look first. It took a few months to change the online current however the real buyers are now paddling in the right direction…… and this is a fact in my areas of business….. noting The Duopoly reps are resurfacing looking for a chat…. no doubt they have seen the change in online traffic to the 3rd Non Duopoly Portal!….. I have to use that term sometimes because of the New Portal Phobias that some folk on here have.

    As The Duopoly diversify in their search for growth and profits they become less relevant.

    OnTheMarket.com need to make some improvements however as said here….. Rightmove didn’t simplify to follow Zoopla, they did do to mimic the clean look of OnTheMarket.com

    The only Dummies in this room are the ones that say another portal will or must fail because of The Duopoly?…… dream on!

    I long for the day that we can rid this type of forum of non-estate agents who are not at the sharp end if our industry. Reasoned debate from fellow professionals and banter is worthy….. whether agree or not….. however The Trolls on here are making it a less interesting place to be…… noting that if they are spending time on here they are monumentally bothered!

    Lets have a Troll Free Non Duopoly Day or Week and actually talk about estate agency and flush the Portal Talk to one side.

    Firstly….. does anyone know a reliable For Sale Board Company in terms of erecting as the National Award Winning One, in our areas, has been woeful!…… I may be a Dinosaur however Real For Sale Boards still work fine….. no need for Touch-screen TV in gardens yet!

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    1. harry hood

      “Re-educating buyers” <= do you realise you sound like a communist dictator?
      And really, do you think anyone listens to you and doesnt use rightmove? come on….this is infantile.

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      1. GPL

        Harry Troll Hood.

        That’s all.

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  7. Woodentop

    EAT used to be very good but it was infiltrated before EYE was born by the same Trolls who now post here. Unless you are using an email address to a Property Ombudsman  registered estate agent, they shouldn’t be allowed to post.

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    1. wilko

      Really good point woodentop.

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    2. truthbetold

      Shouldn’t your name be Ribbentropp rather than Woodentop…what with you wanting to dictate who can and can’t post, and GPL ‘re-educating’ the public there are some worrying authoritarian tendancies on this site…

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      1. Woodentop

        The trouble with TROLLS they take up so much time spouting utter tosh. No one is saying one cannot have an opinion but one has to draw the line somewhere or we have anarchy.

         

        Political Correctness is a doctrine, recently fostered by a delusional, illogical minority and promoted by a sick mainstream media, which holds forth the proposition that it is entirely possible to pick up a piece of **** by the clean end!

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  8. I want to believe

    Ooooohhhhhh this is getting way off track. Zoopla is expanding it’s services in an effort to compete and put up a a good fight to the new challenger – why wouldn’t you! but all I am seeing here is a lot of jibberish and personal gripes being aired.

    I really hope that our industry benefits from competition, whether OTM makes it or not we do need more than 2 portals championing the services of Estate Agents.

    The property industry has very challenging times ahead, the government is going to see to that. The last thing we need is the internal back biting and the professionals amongst us looking to hit the self destruct button.

    Surely as an industry we need to pull together and explore every possible positive avenue in the hope we do hit upon something that actually benefits Estate Agency. Maybe OTM will help, maybe it won’t but flogging it to death before we know the answer is nothing but self destructive to an industry that is already struggling and has challenging times ahead.

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  9. PeeBee

    WOW!!! What a day…

    Back (hopefully) to normality tomorrow, folks!

    Nighty night.

    GPL – when you wake up in the morning NONE of this happened and it is just another lovely posting day – okay?

    ;o)

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  10. the message

    I agree this note does have quite a bit of passion attached……..but wilko you nwould have served us all better if you had asked OTM some tough questions yourself rather than just be a mouthpiece.

    I do some investing in small companies, really interesting, most fail but all of them are run by passionate people who put their heart and soul into every second 24-7, desperate to succeed, and surround them self with bright staff targetted the same way. And very few make it even then. And as shareholders we harry/challenge/support and help, but its all open and transparent. I am not saying OTM has to publicly open up everything to all, but to those that have invested they should, and questions have to be asked about the ability of the mgt team, and the board put around them, to deliver. And just moking this post becuas eits a bit OTT doesn’t really help OTM either.

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  11. wilko

    It was bound to happen. The “anti am” posters have finally imploded and run out of things to say. The likes they are giving themselves and dislikes for dislikes sake serve to further humiliate themselves so let them stay imo.

    Report
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