UK's Foxtons 2024 earnings beat estimates on lettings business boost (updated)
28/01/2025 07:39
(Adds sector context in paragraphs 2 and 3, CEO comment in
paragraph 7)
Jan 28 (Reuters) - Britain's Foxtons Group FOXT.L said
on Tuesday its 2024 revenue and operating profit were ahead of
market expectations, partly helped by the growth in the real
estate agent's lettings business.
WHY IT'S IMPORTANT
A surge in demand for rental properties in London has driven a
significant increase in rent prices, benefiting the lettings
business of estate agents such as Foxtons, at a time when home
sales transactions have been relatively slow, largely due to
affordability concerns and wider economic woes.
Although recent concerns over the slowing pace of the UK
interest rate cuts have dented homebuyer sentiment, the
unexpected easing in December inflation has rekindled optimism
for a softer landing in key economic indicators.
BY THE NUMBERS
Revenue of London's largest real estate agent grew 11% to about
163 million pounds ($202.8 million) for the year ended Dec. 31,
while adjusted operating profit jumped 33% to 19 million pounds.
Analysts on average were expecting revenue of 160.1 million
pounds and profit of about 17.9 million pounds, according to
company-compiled estimates.
Lettings revenue, which accounts for 65% of the group
turnover, rose about 5%.
QUOTE
"We expect the lettings business to remain resilient and, in
sales, we start the year with the highest opening under-offer
pipeline since the Brexit vote in 2016," Foxtons CEO Guy Gittins
said in a statement.
($1 = 0.8039 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Rashmi Aich)
((mailto:abyjose.koilparambil@thomsonreuters.com))