Tuesday, 2 September 2008

Rightmove interim results

No recession/credit crunch/downturn for Rightmove.

Like the gas companies or train companies announcing interim company financial results, Rightmove have just announced their story of happiness. Indeed, whilst the estate agency world suffers, rightmove shine.

How have they achieved this in a depressed market? A number of reasons, namely, they have put prices up, they benefit from agents only spending with them and dropping other portals (thus increasing market share), an increase in lettings and accordingly putting their subscription rates up.

The FT reports at the weekend that Rightmove charge a modest fee for their services. I would recommend the columnist who wrote that piece (Lombard) have a long hard look at what is modest. £400 odd per month, per branch is not modest.

I am still amazed by their share price flucuations over the past few months and have been searching for answers. I smell a rat!

So it is all good news at Rightmove?! Well maybe not. Have a look at the Estate Agent Today rightmove survey. Current results say that 74% of agents will not renew their rightmove contracts. I am not sure about the numbers of people polled and whether they are all strictly agents, but the stats are worth a look (see below).

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