Property portal Rightmove is a ‘licence to print money for very little investment’ – and ‘probably the most outstandingly profitable business listed on the UK stock market’ – according to a financial expert.
The article by Phil Oakley, Associate Editor of the Investors Chronicle, identifies Rightmove as one of a number of companies offering investment potential due to the quality of their business model alongside potential for growth. But it cautions that competition from OnTheMarket could challenge Rightmove’s dominance of the market in future.
Oakley says: “High profits usually attract competition and can upset customers who think that they are paying too much. Rightmove’s stellar growth in recent years has been helped in no small part by it being able to increase the prices paid by estate agents’ offices. However, there are signs that it might be having to rein this tactic in due to the growth of rival OnTheMarket (OTM), which offers much lower fees.”
That the business was singled out as worthy of praise by an investment expert, rather than just a property expert, will certainly go down well at Rightmove. That OnTheMarket – rather than Rightmove’s nearest competitor Zoopla – was singled out as a potential threat is perhaps worth noting too.