UK's Rightmove sees 2027 revenue growth similar to 2026 due to homebuilding slump (updated)
UPDATE 1-UK's Rightmove sees 2027 revenue growth similar to 2026 due to homebuilding slump Adds shares, adds analyst comment
Nov 6 (Reuters) - British property listing firm Rightmove RMV.L said on Friday it expects revenue growth in 2027 to be similar to that in 2026 as it grapples with a slowdown in new home construction amid rising mortgage rates and higher building costs.
Rightmove, which allows agents and new homes developers to advertise their properties on its platform, expects the estate agency market to be subdued in 2027 after the Bank of England raised rates on Thursday
The company cut its 2026 revenue growth forecast to 6% to 7% from 6% to 8% previously and expects adjusted operating profit growth to be at the lower end of its 3% to 5% forecast
Rightmove also expects growth in average revenue per advertiser (ARPA), a key revenue metric, to narrow to £100 to £110 in 2026 from a previous forecast of £110 to £120
The company expects ARPA to remain unchanged in 2027 due to homebuilders spending less on advertising
Rightmove shares fell 3.8% in early trade before reversing course to rise 0.7%, as of 0830 GMT
Peel Hunt analyst Jessica Pok said Rightmove's investment in technology and its pace of product launches will support an acceleration in ARPA growth over time
(Reporting by Simone Lobo in Bengaluru; Editing by Ronojoy Mazumdar)
((Simone.Lobo@thomsonreuters.com, +919920570373))