A new report to investors by analysts at UBS says that the number of branches listing on Rightmove fell by 1,000 – or 4% – in the first six months of this year.
It adds that the overall number of agents listing on Rightmove is down 5% on a year ago, although it says that some may still be subscribers.
UBS says it obtained the data from its own ‘evidence lab’.
Its report comes ahead of Rightmove’s half-year results, covering the six months to the end of June, due to be published next week.
In its report UBS says: “This is a deterioration from the end of March 2019 when we downgraded Rightmove to sell, where advertiser numbers were down 2% year on year.
“This data reflects our view that estate agents who have survived the industry decline in commission rates are being further impacted as transaction volumes turn negative.”
In its own latest housing market report, published this month, Rightmove said that the number of properties coming to the market are down 7.8% year on year, and that completed transactions are down 4.6% in the year to date.
UBS says that some of the advertisers whose listings have vanished off Rightmove may still be members: “Some may just not have any listings on the platform.”
However, it forecasts that by the end of this year, Rightmove will have 750 fewer agent members than in December last year.
UBS believes that the financial hit to Rightmove’s revenues from this will be £3m to £4m next year.
It also forecasts a further £4m to £5m impact next year as agency numbers continue to decline, before returning to growth.
UBS has cut its forecast for Rightmove’s revenues for next year (2020) by £9m, to take account of around 900 fewer agents paying £800 monthly.
It is forecasting revenues at £285m this year, down 1.3% from its original forecasts, and £303m next year, down 3%.
It has also trimmed its forecasts for underlying operating profits. For this year, it is forecasting £217m, down 1.7% from £220m. For next year, it is forecasting £230m, down 3.9% from its original prediction of £239m.
UBS has maintained its Sell rating on Rightmove shares. It has also cut its price target for the shares from 505p to 500p.
UBS is forecasting first-half revenues of £131m in the results due to be posted next week. While this would be 8% up on the same period last year, it is £1m down from what UBS originally predicted.
Yesterday, Rightmove share prices remained unchanged at about 518p – but sharply down from 532p at the start of the week after falling on Tuesday when UBS released its report.
A 4% drop in EA members in the last six months follows a 2% annual drop for 2018.
This could get messy very quickly for RM.
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They deserve a massive drop in share price. They chose to support the pay any way model instead of their core customers .
They’re gamble hasn’t paid off. Fee have gone down, agents can’t make profit , while at sane time onliners are going nowhere.
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I think Rightmove have lost a good number of letting agents not so sure many sales agents.
Still nice to see RM lose business.
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Whilst I dont like them……
Id still like to have £217 million operating profit on a turnover of £285 million as a projection….
The share price might drop a bit thats all…..
Not until agents deal with the idea that RM has planted of it being “anti competitive” to discuss this with each other.
will anything really change.
If that ever happens then watch that shareprice fall….
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Agents should get together and start a portal that is not for profit…. if only something like this wasn’t started nearly 5 years ago…mmmmm
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Rightmove is a good tool that works and compared to paper advertising it is cheaper and gives far wider coverage. My gripe and I suspect many other agents is the continual hike in prices which doesn’t reflect the market conditions and is simply to satisfy shareholders. Unfortunately RM will ultimately kill the chicken that has been laying their golden eggs for some time now
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OK, it’s yet another Rightmove article so timely to post this checklist once again:
Today’s action plan for agents:
1. Cancel your Rightmove subscription, make the call TODAY.
2. If you’re not ready to give up Rightmove membership, only subscribe to the most basic package, ditch micro-sites, banners and featured properties.
3. If you’re not giving up RM membership just yet, remove all Rightmove stickers in your office, logos from stationery & web sites
4. If you share property details on social media, use links to your own website not to the portals
5. Upload your content to your own website first. Upload to the portals (if you must) a couple or a few days later.
6. Ensure you promote YOUR website FIRST, don’t give any portal traffic
7. Stress that people register their details with YOU rather than the portals. Remind them that property does sell ‘off market’ or without the need for a portal upload.
8. Make your feelings known to Rightmove. OK, they’ll probably ignore them but you never know.
9. Finally, put the action plan together for when you finally give Rightmove the heave-ho. Remember they thrive on your fear of leaving, there is life after Rightmove.
10. Don’t moan on industry forums about Rightmove fees if you’re not prepared to carry out any of the points above.
TAKE BACK CONTROL.
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Couldn’t have put it better myself. {applauding}
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We may disagree on most things PP but I back you 100% here! If we don’t take any action how can we honestly expect any change. Thanks for taking the time to make this list!
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Exactly! Well said!
And, as the saying goes “If things don’t change, they’ll stay the same “.
So….be brave and make that move. Cancel your RM subscription!
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RM will keep losing members as the price point does not represent value as it use to.
Agents will keep coming off and some closing and the remaining agents will keep paying a higher monthly fee.
I think RM days are numbered and capped at what agents will pay/afford to pay.
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It rather feels as if RM are offsetting dwindling numbers with further price hikes. I’ve been badgered into seeing our rep who will invariably tell me pricing isn’t their fault, but I could pay more for add on crud.
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Interesting that Netflix share price went down yesterday due to fall off in subscribers after 10% increase in fees, to me it looks looks the same scenario albeit that they are innovative programme makers …RM are nothing more than a digital property paper and deserve everything they will surely get
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They seem oblivious to just how much a 76% profit margin angers struggling estate agents.
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The answer is a national leave right move day… six months hence, maybe Christmas Eve… The share price would drop like a stone. along with their fees.
Monopoly vs anti competition. Is a trade union anti competitive?
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So, the anger & resentment continues to simmer, actively bubbling away, against Rightmove.
I finally feel a measurable change coming in the portal air with that simmering, bubbling, growing resentment against Rightmove driving a silent nail after nail into the demise of Rightmove, each time they go back and squeeze and wring agents for ever increasing monthly subscriptions
Unlike Noah building The Ark, Rightmove are building their own self-destruct button
Rightmove, the goose that thought it laid the reincarnating golden egg is eating itself, it’s too busy gorging on itself to look up at its reflection in the mirror, but when it does, it will be too late
Rock-on Rightmove, we finally get to witness your implosion
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