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Revenue rises at Rightmove as half-year results reveal 10 per cent increase

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Estate agents placards are seen in front of houses in London on August 17, 2016 From computers and cars to carpets and food, Britain's decision to leave the EU is beginning to hit consumers in the pocket, having already spread uncertainty through the property market. There are fears over the UK housing market, but deflation is more of a concern than price rises in this key sector. Figures released Monday showed that residential rents for new lets in London had fallen for the first time in six years. In addition, homeowners have seen the value of their property rise on average by just 2.1 percent in the year up tol August, a slowdown from the breakneck growth of recent years, according to property website Rightmove. / AFP PHOTO / Daniel LEAL-OLIVAS (Photo credit should read DANIEL LEAL-OLIVAS/AFP/Getty Images)

Rightmove said its revenue has increased by almost 10 per cent during the first half of this year after issuing results to its investors this morning.

The property portal reported strong results with revenue to the end of June up to £143.9m, from £131.1m last year.

It claimed this was largely driven by continued growth in its Agency and New Homes businesses.

Read more: UK mortgage approvals rise in June

The firm’s pre-tax profit was also up 10 per cent, standing at £108.1m compared with £98.2m in the first half of last year.

However, there was also a three per cent drop in agency numbers, with the number of agency branches at Rightmove falling from 17,328 at the turn of the year, to 16,786 by the end of June.

Chief executive, Peter Brooks-Johnson, said: “A 4.6% drop in transactions compared to 2018 has put pressure on some low-stock agency branches and created opportunity for others.

“We’re focused on helping all our customers succeed by delivering the most significant and effective exposure for their properties and brands to compete to win home sale instructions and also by being the largest source of high quality leads.

“We’ve seen strong adoption of our new digital solutions and existing packages by new homes developers and agents as they recognise the value of the UK’s largest property audience and Rightmove’s unique data insight.”

There was more positive news, though, as the company’s average revenue per advertiser (ARPA) grew faster than anticipated, increasing by £90 per advertiser per month to stand at £1,077.

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Rightmove also announced this morning that it had acquired referencing company Van Mildert, subject to FCA approval.

The deal is worth an initial £16m with a further £4m to come, but it will not be completed until the end of October.

Brooks-Johnson said: “We’re looking forward to welcoming Van Mildert, a highly respected tenant referencing company, to the Rightmove family which will augment our Rightmove Tenant Passport in our quest to make renting a property faster, easier and more efficient for tenants, landlords, and agents alike.”