Property website OnTheMarket reveals a 14% increase in revenue to £17m

OnTheMarket posted a 14 per cent increase in revenue from last year to £17million, thanks to a ‘proactive marketing strategy’ and focus on technology.

The London-headquartered real estate website, which started operations in 2015, reported a 9 percent increase in average revenue per account (ARPA) to £205 million for the six months to 31 July 2022.

CEO Jason Tebb said the company appears to be on track to meet its full-year expectations.

He added: “Our transformation into a technology-enabled real estate company in the wider real estate ecosystem is accelerating and our momentum is building.

“The Group continued to do well and expects top-line growth, strategic progress and operational discipline to continue, with full-year adjusted operating income weighted to H2 22/23 as top-line growth, including from existing and newly launched products, combined with a largely fixed cost basis, contributing to higher operating margins.’

OnTheMarket Shares In afternoon trading Thursday, they were up 1.4 percent to 74.5 pence, cutting losses in the year so far to 43 percent.

OnTheMarket has established contacts with numerous technology-focused companies, including development finance platform Brickflow, autonomous photo-editing company Autoenhance.ai, and application software developer InsureStreet.

The group, whose main competitors are Rightmove and Zoopla, also made a £350,000 investment in InsureStreet and entered into an extensive partnership with property data specialist Srift.

As for its progress, the AIM-listed company told investors its focus on “serious property seekers” continued, with valuations up 69 percent from H1 21/22.

Like other real estate companies, OnTheMarket has benefited greatly from stronger housing demand during the Covid-19 pandemic, propelled by the stamp duty holiday, low interest rates and Britons looking for more spacious locations to live

Traffic and average monthly leads per advertiser also increased from the previous six months to January 31, 2022, an increase of 11 percent and 6 percent, respectively.

Other wins for the company included the signing of Foxtons and the Lomond Group on listing agreements and the renewal of contracts with leading agency clients.

Like other real estate companies, OnTheMarket has benefited greatly from stronger housing demand during the Covid-19 pandemic, propelled by the stamp duty holidays, low interest rates and Britons looking for more spacious locations to live.

This has led to significantly more traffic to its platforms, increased revenue and average monthly leads among its advertisers, and helped it turn an annual profit for the first time ever in 2021.

However, OnTheMarket’s interim results were released as it was revealed that UK house prices were rising at the lowest pace since the start of the coronavirus crisis last month, with rising mortgage rates starting to bite.

New buyer inquiries fell for the fifth straight month and expectations for the coming year point to a slight price decline, according to the monthly survey by the Royal Institution of Chartered Surveyors (RICS).

The RICS house price balance – which measures the difference between the percentage of appraisers reporting price increases and the percentage of appraisers seeing a decline – fell sharply to +32 in September from +51 in August, indicating a slowdown in price growth.

Despite the bleak prospects in the real estate sector, OnTheMarket CEO Tebb remains optimistic about the company’s positioning.

He said: ‘Our confidence in the future is underpinned by the continued support from our brokerage clients as evidenced by our contract renewals and our role as the ‘agent portal’, our New Homes clients and our consumers, who have responded very positively to the changes. that we have applied.

“We have a strong pipeline of customer and consumer-led new products and services that will further differentiate our proposition.”