Rightmove cuts revenue outlook as new-build market remains subdued

(Sharecast News) - Rightmove lowered its full-year revenue growth guidance on Friday after continued weakness in the UK new-build housing market overshadowed a solid first-half performance. The property portal now expects 2026 revenue to increase by 6% to 8%, down from its previous forecast of 8% to 10%, due entirely to lower development volumes in its New Homes division. Average revenue per advertiser was up 7% at £1,726.

Rightmove said new developments coming to market were at their lowest level in more than a decade, with developers facing some of the most challenging conditions since the global financial crisis. New Homes membership fell 6% year-on-year and 4% during the first half.

Revenue for the six months ended 30 June rose 7% to £225.8m, from £211.7m a year earlier. Agency revenue increased 9% to £163.9m, while New Homes revenue edged up 2% to £38.2m.

Operating profit grew 2% to £148.2m, while underlying operating profit increased 3% to £155.1m. However, the underlying operating margin narrowed to 69% from 71%, reflecting investment in product development, technology and data.

Basic earnings per share rose 5% to 14.8p and underlying EPS increased 6% to 15.6p. The interim dividend was lifted 3% to 4.17p per share.

Chief executive Johan Svanstrom said: "Despite the current volume headwinds in New Homes, our continued momentum gives me confidence in 2026 and beyond."

Rightmove retained its forecasts for full-year underlying operating profit growth of 3% to 5% and underlying EPS growth of at least 5%. It also maintained guidance for annual average revenue per advertiser growth of £110 to £120 and 20% to 30% revenue growth across its strategic growth areas.

The company expects to return more than £400m to shareholders by July 2027, including around £330m through share buybacks.

At 1000 BST, Rightmove shares were 1.4% higher at 463.5p.

See the latest RNS on Investegate.