MARKET REPORT: Rental platform leaves Rightmove due to cost row
With the UK rental market still challenging, Rightmove has taken a hit.
The operator of the online real estate portal announced that it is saying goodbye to rental platform OpenRent.
The move comes a month after OpenRent quietly pulled out of the Rightmove site, citing concerns the operator sought to increase fees for certain third-party agents and platforms using the portal.
Rightmove announced that the partnership would end on September 1 after the terms between the two parties could not be settled.
Online property portal operator Rightmove has announced that it is parting ways with rental platform OpenRent
OpenRent accounted for around 8 per cent of listings on the site in July. Panmure Liberum analyst Sean Kealey said the news would add to fears that Rightmove’s pricing power is being weakened.
Despite OpenRent’s departure, the FTSE 100-listed company stuck to its full-year revenue forecast of 7-9 percent growth, while underlying operating margins were expected to be 70 percent.
Rightmove lost 4.3 percent, or 23.8p, to 524.2p.
After the sharp declines of recent sessions, British markets managed to stabilise.
The FTSE 100 index closed up 0.2 percent or 18.46 points at 8,026.69 and the FTSE 250 index rose 0.7 percent or 130.96 points to 20,367.7.
Keller topped the FTSE 250 gainers, up 11.6 percent, or 160p, to 1,538p, after the geotechnical engineering company announced a rise in first-half profit and a higher dividend, saying it expects to comfortably beat full-year expectations amid a buoyant North American market.
IWG rose 4.3 percent, or 6.9p, to 166.5p as the office rental company, formerly known as Regus, reported record first-half results, driven by a strategic network expansion across its brands.
The FTSE 250-listed company achieved its highest ever turnover and rewarded investors by resuming dividend payments.
Ramsdens also rose 5.2 percent, or 10p, to 202.5p as the pawnbroker raised its full-year pre-tax profit forecast. The pawnbroker said good trading momentum continued into the second half of the year, helped by higher gold prices that led to a better-than-expected performance in the precious metals segment.
Zotefoams was steady at 494p as the cellular material technology supplier reported double-digit profit growth in the first half of the year, with the company benefiting from increased demand for footwear.
Waste management company Renewi rose 1.25 percent, or 8p, to 650p after reporting growth in revenue and underlying profit in the first quarter.
However, Domino’s Pizza fell 7.1 percent, or 22p, to 287p. The company warned that full-year profits would be at the lower end of market expectations after a slow start to the first half of the year.
Morgan Advanced Materials fell 1.9 percent, or 6p, to 309.5p, as it said it remained cautious about demand across several end markets despite reporting robust half-year results.
Travis Perkins fell 0.4 percent, or 3.5p, to 876.5p as the DIY retailer cut its full-year profit forecast after profits fell by a third in the first half of the year.
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