March 1 (Reuters) - UK property portal Rightmove forecast on Friday a 7%-9% revenue growth for the current financial year after posting a rise in 2023 profit, in line with market view, as customers upgrade packages and increase their use of digital products.
The runaway market leader has benefited from resilient traffic on its portal as homebuilders desperately sell off properties in the sales market, which had remained subdued for most of 2023.
Rightmove, which charges estate agents and homebuilders a fee to list their properties on its website and also generates revenue through advertising, said its average revenue per advertiser (ARPA) - a key measure for the company - rose 9% to 1,431 pounds ($1,807.6) per month in 2023.
The company said it expects ARPA growth of 100 pounds-110 pounds in 2024, partly driven by its new Optimiser Edge package and contract renewals.
Given the uncertainty in the macro environment, Rightmove, which has been exposed to tougher competition in recent times, said its customer numbers are likely to ease this year.
The FTSE-100 firm, which runs the country's largest property website, posted a 7% rise in operating profit at 258 million pounds for the year ended Dec. 31, compared with company-compiled average analysts' estimates of 258.3 million pounds.
($1 = 0.7916 pounds)
Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sherry Jacob-Phillips
Source: Reuters