UK's Rightmove cuts annual revenue growth forecast on weaker new home building
UK's Rightmove cuts annual revenue growth forecast on weaker new home building July 31 (Reuters) - Britain's largest property listing firm Rightmove RMV.L on Friday reduced its annual revenue growth forecast, citing softness in new home construction and sales.
Here are some details:
Rightmove said it expects revenue growth of 6%-8% in fiscal 2026, down from previous guidance of 8%-10%.
It expects to report full-year revenue at the lower end of that range if market conditions deteriorates further.
Rightmove said new-home construction is at its lowest level in more than a decade, due to competition from the resale market and challenging market conditions.
Concerns over interest rate hikes and inflation have increased caution among buyers already grappling with rising energy costs and other cost-of-living pressures.
Rightmove reiterated its annual underlying operating profit guidance and said it expected to return £400 million ($538.28 million) to shareholders in the next 12 months, including approximately £330 million through buybacks.
The property listing firm expects about £4 million to £7 million in exceptional costs in 2026, related to a £1.5 billion lawsuit in the UK's Competition Appeal Tribunal by estate agents.
The company said £2.3 million of those costs were recorded in the first half of the year.
Shares fell as much as 4% before reversing course to rise marginally at 0715 GMT.
($1 = 0.7431 pounds)
(Reporting by Simone Lobo in Bengaluru; Editing by Eileen Soreng)
((Simone.Lobo@thomsonreuters.com, +919920570373))