It’s fantastic, but at 121 slides long might be too long for some DMZ readers, so we’ve summarised the 7 most important and interesting points from the UK portals and provided our take on what this means for the industry
Rightmove is the most profitable property portal in the world sorted by profit margin.
Interesting to note that Rightmove isn’t investing more in the company like US portal giant Zillow, maybe they’re happy with their current market share and position.
Zoopla Property Group only generates 25% of it’s profit via estate agent revenue, compared to Rightmove’s estate agent heavy model, which comes in at approximately at 77%.
Unlike nearly all other portal giants, Zoopla is not reliant on estate agents for cash, turning themselves into a portal in the truest sense on the word rather than a straight-forward listings site.
Zoopla makes around 50% of their revenue from their comparison websites, like uSwitch.
Rightmove take a chunky 42% of revenues from premium property listings, ‘Featured Property’ ads that have high-res/larger pictures and are pinned to the top of search results.
The company appear dependent on premium features, but for real dependency check out Australian based REA Group who’s entire business model appears to rest on agents paying for a more eye-catching listing.
Not so much of a problem if you’re Zoopla and generate a quarter of your business from agents, but a huge problem if you’re Rightmove and agents are your main revenue source. Watch this space.
Zoopla has spent a whopping £450 million on acquisitions since 2015.
In a clear diversification play, the group is now involved in multiple business areas including website design, back office systems and financial comparison products. This is a smart move from CEO Alex Chesterman, who has grown the group beyond a listings site and into a diversified property and technology company.