Zoopla adds nearly 150 more estate agency branches over summer

| Rosalind Renshaw

Zoopla has today reported a continuing “return to growth” in estate agency membership.

City analysts at bank Jefferies, which advised Zoopla on its flotation last year, claimed that this showed that while OnTheMarket “may not be out, it is certainly on its way down”.

However, another analyst, Exane BNP Paribas, described Zoopla’s membership growth as “tepid”, at just 1% up on the first half of this year. This morning it said: “There is no sign of an acceleration in joiners back from Agents’ Mutual.”

This morning, in a post-close trading update, Zoopla told the City that it has added 146 new UK agency branches since July, giving it a total of 12,702 branches as at the end of the financial year, on September 30.

Zoopla also said it had 2,706 new home development members, 737 overseas members and 266 commercial members, taking the total number of members at the end of the financial year to 16,411.

Zoopla reported revenue and EBITDA (earnings after costs) of around £107m and £48m respectively for the financial year.

These were both up on 2014 results of £80.2m and £39.6m.

Zoopla said its management “is encouraged by the trend of gradual UK agency membership growth over the past five consecutive months”.

It added that it is confident of greater advertising spend by its members, based on demand from agents for additional products.

This morning, in an effusive note to investors, Jefferies said Zoopla’s update showed performance and results ahead of expectations.

It said that the strength of uSwitch “should silence those still questioning th logic of the acquisition and whilst OTM may not be out, it is certainly on its way down, in our view”.

Jefferies said that the uSwitch affiliate model – by which agents will be able to earn money by offering utility switching services – was a “master stroke”.

It said: “Zoopla is harnessing uSwitch to allow its agency customers to offer switching services, a value added service which we are not aware is offered either by Rightmove or OTM.

“The switch services provide revenue for the agent whilst saving money for their customers, what we call a ‘win win’.

Jefferies said of Zoopla’s new members: “This is a trend and a positive one, which suggests to us that the group is repairing the damage caused by OTM and that agents appreciate the value proposition of Zoopla”.

However, William Packer, of Exane BNP Paribas, said membership growth was “tepid”, showing 1% growth from the first half of this year, and called the financial information released by Zoopla “limited”.

He said that while revenue and EBITDA were ahead of expectations, this had been driven by uSwitch rather than the portals. He said this implied 0% organic revenue growth for the core business.

Exane said that there was no sign of an acceleration in membership growth. It reiterated an underperform rating and said: “We continue to see downside risk fro Agents’ Mutual heading into 2016.”

 

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26 Comments

  1. the message
    October 22, 2015 at 06:58

    how about this as a prediction for today.

    Z publish an update. PIE quote an obscure analyst who has the most negative outlook. Z share price goes up or down. Pro OTM people show how Z is doomed, anti OTM show how its proof OTM has failed.

    Springett pops up with a quote, saying that what Z says is wrong despite it being a plc, and actually his numbers are right, which come from his own system.

    Queue more comments from the pro and anti brigade, the pro guys being vindictive about IS, the central london agents dominating, lack of visibility, central london office etc, and the pro brigade highlighting the duopoly, Z waning powers strength and honour in unity, something about rummage4u and then russell quirk pops up to show how its all gone online.

    Meanwhile Rightmove share price continues to rise

    It was back to the future day yesterday, groundhog day today??

    Report
    1. danny
      October 22, 2015 at 08:42

      Best…post…ever

      Report
      1. the message
        October 22, 2015 at 09:13

        Thank you fans…I am here all week!!

         

        Report
        1. PeeBee
          October 22, 2015 at 16:45

          “…I am here all week!!”

          …but I remain behind my cloak of invisibility until the slightest mention of OTM or Zoopla – then I appear as if from nowhere…

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      2. Benay
        October 22, 2015 at 09:25

        a chesterman brown noser who holds; the record for liking their own comments, a very high opinion of themselves, a caustic venom  towards OTM and an  ego big enough to name themselves the message. Funny as!

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        1. the message
          October 22, 2015 at 09:40

          morning to you benay. I dont think I have ever been positive about Z actually, and I dont know how many times I can say i fully support the idea of agents taking power back ourselves across many areas. To me the portals are just a channel for marketing, nothing more. I am disappointed by how OTM has turned out, and the lack of ability to discuss and challnege how it can be improved.

          People like you, with your aggressive stance towards anyone who dares question the fact that OTM is a business with a strategy set by a bunch of old farts stuck in mayfair (I am reminded of a will carling line I think) when it is trying to be a cutting edge digital marketing partner to estate agents, defies belief.

          The fact tghat so many people liked my initial post shows I believe that at least a few people, regardless of their OTM views, have a sense of humour. I was trying to poke gentle fun at all sides I though, and also throwing in a bit of relevant humour in terms of back to the future, and also including the greatest film of all time.

          The fact you chose to take it as you did shows more about you than my massive ego I would say, you soulless little man!

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          1. Benay
            October 22, 2015 at 10:07

            you’re actually funnier that your posts! can you now do a little rant about how much Ian Springett gets paid?

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            1. the message
              October 22, 2015 at 10:31

              I could do, but have realised that the “OTM visionaries” genuinely dont care about that, or the london centric nature, or the running of the countrylife site, or indeed the foray into overseas properties. If none of that can get them riled, the fact that IS is taking home the salary of a FTSE 100 CEO isn’t going to matter a jot is it? no, we are believers, cut us and we will bleed red white and blue, and we will never surrender!! Its exactly the kid of fighting spirit we showed at dunkirk, and that turned out well……though also the same as at khartoum, and who needs reminding about Afghanistan 1842…still at least we learnt from that one…..oh no, we didn’t…..

              As Will greenwood said about rugby last week, brave hearts and henry V style speeches wins you the first 5 mins, a rugby match is won with cold clinical logic in the face of huge pressure and fear. To me business is the same, and I am all for the “brothers in arms” speech as long as its backed up by cold hard facts and data. sorry benay, I never rant, I poke the stick at people bloated by arrogance.

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            2. PeeBee
              October 22, 2015 at 10:31

              Benay?

              Can’t believe you’ve been let out so soon after… well – let’s just keep it to ‘so soon’.

              One way or another – welcome back, mon ami.

              Your chair is duly dusted down, polished, and awaiting the company of your eminent posterior.

              Things are no doubt going to get… interesting. ;o)

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              1. the message
                October 22, 2015 at 10:51

                oh no, I didn’t realise he was a mucker of yours peebee or I would have been much better behaved, and would have never thought about raising Gandamak 1842 as i know how much that grates.

                And where the hell is IS, 10.51 and no comment from him…..outrageous and makes me look a fool for my predictions!!!

                 

                 

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                1. PeeBee
                  October 22, 2015 at 12:15

                  Never met the man… or woman.  Or whatever.

                  All I know is he/she/?? doesn’t accept the possibility of defeat – no matter what the odds.

                  Good luck.

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              2. Benay
                October 22, 2015 at 11:12

                I am not out, they put me in charge of the library which has an ancient vista OS system but a  connection to the internet which is locked down for most things.  Can’t abuse privileges, just wanted to touch base.

                Oi message there are two kinds of angry people, explosive and implosive, stop screaming at the cashier, remember… Goosefraba

                 

                 

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                1. the message
                  October 22, 2015 at 11:21

                  I use back to the future and groundhog day, and move seamlessly onto historical battles, and you use adam sandler……says it all! If this is an attempt at rallying the battleweary troops you are more churchill the dog than winnie

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                  1. PeeBee
                    October 24, 2015 at 09:18

                    Or to put it another way…

                    Benay employed humour to make a point; you resorted to bringing up the deaths of millions.

                    Class act.  Hard to follow – who knows what you would wish upon anyone in disagreement, or simply revulsion, to your analogy.

                     

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                    1. PeeBee
                      October 24, 2015 at 11:41

                      Yeah, go on – knock yourself out –  ‘Dislike’ all you want.

                      It doesn’t remove the truth of the matter… does it?

                      Report
    2. smile please
      October 22, 2015 at 12:45

      For what its worth i thought was humorous (and pretty fair summary) and gave it a like!

      Report
      1. PeeBee
        October 22, 2015 at 13:37

        You can go off people you know, smile please…! ;o)

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        1. smile please
          October 22, 2015 at 14:14

          Never knew you were on me! 😉

          Report
          1. PeeBee
            October 22, 2015 at 16:47

            There’s sooooo much you don’t know about me, smile lease!;o)

            Report
  2. HarryN
    October 22, 2015 at 07:08

    The bias this website puts on OnTheMarket is as remarkable as it is transparent.

    When the thing (OTM) is proven to be a disaster, I hope they will accept their share of responsibility for giving it so much positive publicity over the past year or so.

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    1. AgencyInsider
      October 22, 2015 at 07:41

      Same old stuck record HarryN. I think PIE made its position on OTM very clear a short time ago in a post on another story. Seems to me they are no more biased than the others are about Z. If you don’t like the PIE why don’t you stop EATing it?

      Report
  3. the message
    October 22, 2015 at 07:53

    Not sure anbout bias, but by god they love this packer chap – I am not sure who he is related to, nor why the powerhouse of BNP Paribas (anyone else never heard of em…) are so widely quoted……..

    I think the best way is to forget what they say and look just at the share price – if it goes up its usually a good statement, bad and down. simple!

     

    Interesting that in the warly days of OTM, the share price of Z was pointed at as the key indicator of how badly it was being hit. It is up about 30pc since OTM was launched now……..so certainly a lot of people have made their call as to how this plays out.

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    1. Disillusioned
      October 22, 2015 at 08:07

      Don’t forget to congratulate the opening poster for getting their prediction right

      Report
  4. the message
    October 22, 2015 at 15:48

    Come on Ian, Z shares are up 7% today, your people need you, man the battlements, bring out the dead, cry havoc and let slip the dogs of war!! This is no time to be doing a shrewd deal to host tatler.com, or to announce an e-partnership with country estates, we need data, lots of it, and ideally stuff that adds up!

     

     

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  5. harry hood
    October 22, 2015 at 16:17

    Every time Zoopla say something, then Springett is there ready.

    Very Sad that Springett and committee now judge their success in terms of Zoopla failure.Pathetic really.

    Now they’re letting everyone down, including this website which has supported and aired their views. To evidence this just note that the other website have already published comments from Springett.

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  6. RealAgent
    October 22, 2015 at 18:21

    Its a bit late in the day to be mentioning this perhaps, but has anyone mentioned how many offices Zoopla have gained through acquisition of estate agents who were NOT on Zoopla before but their acquirers were?!

    Report
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