Shares in Zoopla rose 10% yesterday after its outstanding half-year results, showing a 130% rise in revenues driven by performance at its comparisons website business uSwitch.
The business was acquired last May and delivered a performance ahead of expectations, with 46% revenue growth.
William Packer, analyst at Exane BNP Paribas, said uSwitch was now worth £500m, against the £190m Zoopla paid for it only 12 months ago.
He said the strong performance adds to Zoopla founder Alex Chesterman’s “impressive” track record regarding mergers and acquisitions.
However, Packer said that momentum at Zoopla’s property portal business was “subdued”.
Property services revenues at Zoopla declined 8% organically, he said.
However, he said: “More encouragingly, the group (again) talked up the prospects for an acceleration in returning members from Agents’ Mutual, although we note there are conflicting reports in the industry as to progress.”
Exane said it remained neutral on Zoopla, saying that the group was trading “at a premium to Rightmove despite less favourable competitive/structure dynamics. Agents’ Mutual’s Letter of Intent Strategy remains a sting in the tail risk.”
Zoopla shares rose to 337p.
Comments (39)
The rhetoric of the comments on stories like this make me chuckle. The comparisons drawn between this ‘current state’ business and the elephants of the past make me… what’s the next-gen phrase… LMFAO.
Readers will do well to remember that this is a FTSE 100 company, performing on the centre stage, with the capital markets taking no prisoners on under-performing or ‘at risk’ enterprises. The Zoopla story, you have to say, is one of success that just keeps getting stronger. And no, I don’t work for them. I don’t own stock. I just sit on the sidelines watching this one play out.
The share price is fact. Their results are fact. Their roadmap is being executed, with precision, demonstrated by their strategic calls on aggregating property data and monetising ‘property activity’ all the way down the line. For the uneducated, this is MoveIT, myPropertyFile and the “part-finished” (pah) software products of Alto, Jupix et al.
Put simply: Connect the dots, own the transaction, move the market.
To those hanging on to ‘their’ database and to those who need to lean on events 7-10 years ago; it’s time to step off the wagon. There are bigger, better and more progressive forces at play in this industry. The minnows, the have-beens and the ‘never-weres’ would do well to keep a lid on their naivety and let this disruption wash over them. If they are honest, they were never at the top table in the first place.
Next gen-phrase: L-M-F-A-O
Digital fix? is that who you call when your digital expert isn’t managing to control the situation.
The minnows, the have-beens and the ‘never-weres’ would do well to keep a lid on their naivety and let this disruption wash over them. If they are honest, they were never at the top table in the first place.
Hmmm… multiple choice pigeon-holing.
I’ll place myself in at least two of the above – and painfully proud to be there.
I always thought – and still believe – the smell of pure rot at the ‘top table’ was enough to keep those that actually made a difference away.
Looks like I was right, after all…
Clarice Cliff? Car boot sales? The reason something has value is not down to the original creator but due to what other peoples opinion on its value is. Van Gogh was not valuable until general opinion deemed it so. Zoopla clearly demonstrate what the world markets deem valuable. Are you really going to argue with the stock exchange Mr May? Or is this another one of your missions to bring down anyone associated with PSG?
You sir in your analogy would be that car boot seller who was stung by a knowledgeable buyer 😉
Don’t miss the train due to your own bitterness. Get on board.
You have to bear in mind the information that was available to me in 2009 when Thinkpropertty was passed to Zoopla,
Do not insult me by confusing honesty with bitterness.
“The analogy of a car boot sale is laughable!” The analogy was perfect and you know it.
It implies that Zoopla are bargain basement hunters, when in reality they’re shopping for the latest technology at the Apple Store. It was, in the words of the kidz, a fail.
Thinkproperty wasn’t latest technology in 2009 it was OK, it worked but that wasn’t the value. The potential of which the executive were fully aware of was what, with less work than has been poured into getting Alto part finished, it would be worth. Nothing Zoopla have done to make itself a £1b firm prior to the acquisition of Uswitch wasn’t possible with the collective user base off GMGPS and a willingness to do the work which had already been specified. What you are claiming is innovation is someone else’s homework.
The problem you have is trying to argue with someone who was involved directly with this before you joined the company. At best you are relying on a 2nd hand version of events from people who either weren’t operating at board level or who have the integrity of a mundic block
As I pointed out last week I post here honestly and openly, if what I was posting was in any way deviating from the truth the trigger happy litigation teams would at the very least have Ros Renshaw redact my posts
Congratulations.
2 minor points:
1) Your analogy was flawed
2) I don’t work for them, although I do advocate them
The analogy is not flawed, either the value of Thinkproperty was known and properly understood by the vendors or it wasn’t, the advice the owners were given was either sound or flawed.
If you follow the logic of that through, along with subsequent documented events, ruling out naivety, stupidity or luck there is only one logical reason for the sale of Think to Zoopla in 2009.
Wait, what? My Z shares are up, again? Preposterous!
And I still stand by my other comments on other posts.
P.s. How are your Z shares doing davidbamforth, old buddy, old chum? I presume you have Z shares seeing as you are a Z supporter?
Hello PeeWee,
My agency advocates companies that offer the best service, hence my opinion leaning towards Rm and Z, OTM’s attempt to put the internet back in its box is short sighted and a disservice to independents and vendors alike.
Agents leaving Z for OTM last year was a great opportunity for us, Z consumer traffic was unaffected, our market share increased by 32%
I wonder what the big six who started AM will do once all these independents start losing more and more market share.. buy them up? The travel industry, the current black cab / Uber debate are interesting examples of OTM’S anti digital age strategy failing.
If you own shares in Zoopla yet advocate OTM.. isn’t that rather contradictory? Rather like trying to take down RM but leaving Zoopla…
Good luck!
Superb!
Dear db,
I can see why you would say so, but my stance isnt contradictory, its honest business advice. It sounds like you are interested in what makes good business sense, yet are knowingly or unknowingly, happily wondering into yonder of which you will end up with zero control. As before I have never said that RM & Z are NOT good portals, of course they are good portals, but that doesn’t mean that they have good intentions for independents or franchise agents in their long term plans. And apologies about my Z shares jibe it is just honest banter and I hope explains an integrity I can bring to this argument.
My underlying point is, all those agents who do not support OTM are waving a dirty great big flag above their office door that says, “come and take my cash”. And you had better believe that there will be a wave of proptech & two portals beating a path to their door to do just that. And those who attribute their success to the duopoly cannot wait to welcome them in.
The point about the Z shares is I have a vested interest in OTM failing as do any detractors of OTM, but it does not make it right! I win if OTM fails, yet it still does not make it right.
Unfortunately a short sighted argument of offering vendors the very best exposure is what will be short lived, if the duopoly return, beating their chests, fresh from a defeat of OTM. The following price hikes will have agents choosing between RM or Z with no OTM to keep them in check.
With that in mind, all OTM naysayers might want to pop into that pharmacy over the road, pick up some lube, brace and go to their happy place, cos RM & Z… they are a coming. Good luck indeed!
.
.– …. -.– / .- .-. . / -.– — ..- / -… — — -.- / — .- .-. -.- .. -. –. / – …. .. … / -.-. — — — . -. – / .-. — -… . .-. – ..–..
.. .-.. — – — ..-. .–. . — .–. .-.. . .-.. .. -.- . – — .–. .- .. -. – — . .- … … – ..- .–. .. -.. –··– .. -. … .- -. . .- -. -.. .- .-.. .-.. – …. . — – …. . .-. .. -. … ..- .-.. – … – …. . -.– -.-. .- -. – …. .. -. -.- — ..-. ·-·-·- – …. . .-. . .- .-. . .-.. — – … — ..-. .–. . — .–. .-.. . … — .- .-. – . .-. .- -. -.. .-. .. -.-. …. . .-. – …. .- -. — . -… ..- – .. – ·—-· … .- -. ..- — -… . .-. .– …. .. -.-. …. .-. . -.. ..- -.-. . … -.. .-. .- — .- – .. -.-. .- .-.. .-.. -.– .– …. . -. -.– — ..- .. -. -.-. .-.. ..- -.. . …. — -. . … – -.– .- -. -.. .. -. – . –. .-. .. – -.– ·-·-·-
.. — / … — .-. .-. -.– / .- .. .-. / — .- .-. … …. .- .-.. .-.. / — .- -.– / — -.– / — — .-. … . / -.-. — -.. . / — .- -.-. …. .. -. . / .. … / . .. – …. . .-. / -… .-. — -.- . -. / — .-. / -.– — ..- .-. / — — .-. … . / -.-. — -.. . / .. … / -. — – / -.-. — — .. -. –. / – …. .-. — ..- –. …. / .-.. — ..- -.. / .- -. -.. / -.-. .-.. . .- .-. / .–. .-.. . .- … . / … .- -.– / – …. .- – / .- –. .- .. -.
WordPress is period intolerant. To answer your question, No.
davidbamford – you say
‘OTM’s attempt to put the internet back in its box is… a disservice to independents and vendors alike.’
So… from this damning statement may we take it your company avoided joining OTM like the plague?
I take a personal pride in stories like this one. Anyone can turn up at a car boot sale and buy Clarice Cliff vases from a naive seller, the really impressive track record belongs to Clarice Cliff; the one who designed & built the vases in the first place.
The best bit for me? I was right
p.s. you know I said “one day you’ll understand” today is that day!
So, let me get this analogy right:
Uswitch was only useful and admirable prior to it being purchased?
So by that reckoning, Lionel Messi was only deemed a useful footballer before he signed for Barcelona? ‘His best moments were in the garden as a child, ignore what he did at Barca – he wasn’t born at the Camp Nou’.
The analogy of a car boot sale is laughable!
The creators deserve, and receive credit. But now it’s potential use has been magnified – hence the partnership & merger.
I’m not sure what you’re ‘right’ about here?
‘So, let me get this analogy right…’
Keep going – we will let you now when you land on the same planet.
History didn’t start on the day you were born and in this case didn’t start the day you joined the company.
I never suggested it did, and to reiterate a previous point – innovation is not just in the invention, but the application.
Careful what you assume Robert – who knows, you may even be aware of me in ‘the real word’. 🙂
Careful what you assume Robert – who knows, you may even be aware of me in ‘the real word’
Oh… I would think there’s little doubt whatsoever of that ‘possibility’…
USwitch does give Zoopla a powerful weapon to use against Rightmove if they start to harness it.
USwitch earn referral income for every service they pass on. Gas, electric, phone, broadband, removals. etc
If they shared this with estate agents, the financial incentives make it very attractive for an agent to choose Zoopla and stick with them.
Agents have sellers, buyers and applicants. A wealth of data that has value.
Currently there are no referral schemes in place because they are still integrating the business.
One for the future.
If they shared this with estate agents, the financial incentives make it very attractive for an agent to choose Zoopla and stick with them.
Surely Agents should not be choosing where they advertise properties based upon the value of its’ kickbacks, Mr Ackroyd?
You don’t mean return on investment do you, PeeBee? That would be a ridiculous idea! Whatever next? Value?
I didn’t ‘mean’ anything, Digital Expert.
I was responding to Mr Ackroyd’s reasoning to pick an advertising medium – simple as.
I think that was fairly clear to the vast majority of readers.
I agree. It’s based upon what’s best for the customer. In our case Rightmove and Zoopla because they put the vendor’s properties in front of the largest number of eyeballs.
But most agents earn money from financial and conveyance related services.
If Zoopla made this an additional revenue stream, it can only help in their attempt to catch up with Rightmove and encourage people to move from On The Market.
I’m not expressing a preference to any portal – just commercial realities.
In our case Rightmove and Zoopla because they put the vendor’s properties in front of the largest number of eyeballs.
I don’t want a load of b@11s – I want genuine buyers who actually buy – and you get more of those looking in your shop window than online.
“The Information Superhighway” allows multitudinous traffic to pass by, totally unseen, at breakneck speed.
I’m not in the least bit bothered that there are a gazillion ‘users/hits/whatever’ on Portal A, B, or WXY every second/month/ or whatever time-period that suits them to quote a snazzy number.
They are useless to me – like the thousands of cars that whizz past every motorway café on a daily basis. (at 67.8mph, of course…).
The only road-users I am bothered about are the few that slow down – they might hopefully pull in next time they pass this way; or the tiny fraction that actually put their dinky on to leave the road, and pull into my forecourt.
I can actually sell them something.
The others – purely roadnoise.
Comparison sites have a design flaw, a deliberate one, the expensive bits, service and loyalty are left out of the equation to make it profitable and necessary again and again; [there’s only a short term future in a business that only churns its customers once] there are alternatives that offer whole of market savings and some “what was that?” compelling benefits but are driven by service and savings where consumers can switch, save and are rewarded for loyalty by the savings in a system not reliant on permanent TV advertising
Good agency understands putting people before profit is long term more beneficial, that philosophy has been applied to energy saving schemes as an antidote to orchestrated churn systems. They aren’t as high profile as the ones on the telly but word of mouth, viral marketing is devastatingly effective these day and it won’t be long before ‘switch and stay’ savings start to catch on.
“people before profit” Not for profit agency?
Not quite the best profits are fair profits that people don’t mind paying and refer the service to others. You only achieve that by looking after the client and putting their interests ahead of your profit.
Put people first and profit will follow.
Put profit first and people will follow someone else.
‘If they shared this with estate agents, the financial incentives make it very attractive for an agent to choose Zoopla and stick with them.’
I think Mr Ackroyd that this probably conflicts with many of the corporate Estate Agents that subscribe to Zoopla as they have many arrangements in place to cross sell broadband, energy etc already. This type of arrangement is also available to all those smaller agents that wish to sell other products. You will often find it is not worth the time and trouble unless you can automate this into your back-end systems.
Zoopla are a data gathering company and have taken the clever move of buying the ‘leads’ in. I have no doubt they will be successful in what they do but still feel that this is in conflict with many independent High Street agents. I can see why firms such as yours need OTM to fail and Zoopla to succeed.
I can see why firms such as yours need OTM to fail and Zoopla to succeed.
The irony being that if OTM were to fail, those who have been part of the engineering of the situation will be standing in the same line, year-on-year, waiting for Z etc to order them to bend over and grasp their ankles…