Property site Rightmove unveils profits boost
01/09/2006 - 08:18:26UK property website Rightmove eased its disappointment over Home Information Packs (HIPs) today by unveiling a sharp rise in half-year operating profits.
The group reported a doubling in revenues to £15.1m (€22.4m), reflecting 5,000 new advertisers and a market penetration among estate agents of 74%.
Operating profits rose 138% to £8.3m (€12.3m) in the six months to June 30, but the company’s bottom-line figure was down to £1.6m (€2.4m) from £3.4m (€5m), following the decision to stop the development of its HIPs offer.
Rightmove’s HIPs withdrawal came after the Government pulled the requirement for a home condition report in next year’s launch. The company had invested around £7m (€10.4m) in its offer and will incur a further £1.2m (€1.8m) of exit costs, it said today.
