The money is just going to “keep rolling in” to Rightmove – provided that agents stay afloat.
George Salmon, of Hargreaves Lansdown, says that Rightmove accounts for around four out of every five minutes spent on property portals, and that 94% of sellers expect their property to be listed on the portal.
He said in a note to investors: “The group charges a fixed fee per estate agent per month.
“With almost all of the UK’s agents signed up, growth is now coming from annual price increases and upselling additional services.
“However, the agents who have to stump up the extra fees have been struggling recently.
“With wider concerns over the stability of the housing market post-Brexit, and rising competition from online estate agents, some may worry that Rightmove risks biting the hand that feeds it.”
He goes on: “Having coped easily with challenges from Zoopla and OnTheMarket, Rightmove remains the dominant player.
“For estate agents, it often comes down to a simple choice between paying the Rightmove fee, or selling fewer properties.
“If budgets do need to be cut, we feel the still significant print advertising budget is a more obvious target, rather than taking the risk of not featuring on Rightmove.
“Viewed from this perspective, provided the agents stay afloat, it’s easy to see why the revenue should keep rolling in.
“With net cash on the balance sheet, there is little reason to suspect that Rightmove will do anything other than continue returning all of its excess cash to shareholders in the foreseeable future. The prospective yield is 1.4% at present, but analysts expect steady dividend increases from here.”
Rightmove has a current market capitalisation of nearly £3.7bn, with shares trading yesterday at around £40.
The Hargreaves Lansdown report also looks at two other portals, Just Eat and Auto Trader. It says that all three are clear leaders in their respective markets.
Anyone else noticed the big banner adverts for YOPA now on rightmove….advertising their fixed fee including VAT at £780?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If rightmove and zoopla continue to support the online agents, then they will need to find a way to charge these remote business models more ££.
Rightmoves income comes from agent numbers and so they need to support all their agents.
Should poor service agents even be allowed on ‘respectable’ portals?
RM and Zoopla seriosly need to start looking at the real reviews these online agents get…if a local agent had that many unhappy customers (including the poor buyers who have to try and organise viewings annd offer through these business models) iam sure they could stop them advertising.
ONTHE MARKET, you need to let all agents on now, if they have an office in the town they do business in…you need to be looking at service as a membership policy and not think you are bigger then the consumer…which you have proved your not.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Well duh… they charge, agents sign up, money is transferred from one business to another.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Over the years agents have sub contracted all of their property digital marketing to the two big portals, with Rightmove as top dog.
In their mind set their market dominance now entitles them to behave in a “Cavalier” fashion and milk their clients with annual price increases, whilst they are struggling in a difficult market.
A real case of the tail wagging the dog or in this case dogs.
That is until the dogs bite back.
Hang in, I hear change is on the way!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Roll on OTM
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
We are now using the “optimizer” package on all branches so they have double their income from me.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
http://www.scottbainbridge.co.uk/
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
What am i missing with the link?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The money will not keep rolling in if the online revolution which RM and Zoopla together have allowed to flourish, destroys the high street agents!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register