OnTheMarket (OTMP ), operator of the OnTheMarket.com property portal, announced today unaudited interim results for the 6 months ended 31 July 2022 (1H 22/23)
Financial Performance
OnTheMarket reported continued growth in revenue and average revenue per account (ARPA). Group revenues increased 14% year-on-year to £17m, and ARPA increased 9% to £205.
The company saw strong growth in New Homes revenues, up 73%, boosted by increases in advertiser numbers and ARPA. OnTheMarket continued to be profitable with an adjusted operating profit of £1.3m attributed to "planned strategic investments in marketing and the team".
OnTheMarket finished the period with a strong balance sheet, with 1H 22/23 cash generated from operating revenues of £3.1m. Period-end net cash increased to £8.7m with no borrowings.
Operational and strategic highlights
OnTheMarket said it successfully renewed contracts with "high-profile agency customers" who had committed to 1-year agreements on the company's admission to AIM in February 2018.
In July 2022, Foxtons, a leading London estate agency, signed a listing agreement with OnTheMarket. Post-period end in August, Lomond Group signed a listing agreement as well. Lomond is a growing network of sales and lettings businesses with over 60 branches in the UK.
Glanty relaunched as OnTheMarket Software and introduced new products including TecCRM, the first majority agent-owned CRM delivering an end-to-end customer relationship management solution.
OnTheMarket said it continued its focus on serious property seekers, with valuation leads up 69% compared to 1H 21/22. Traffic and average monthly leads per advertiser increased half-on-half, up 11% and 6% respectively.
OnTheMarket also registered a 73% increase in agency spend on additional products, validating the company's strategy of adding value through extra products, services, and partnerships.
Period end new homes developments listed on OnTheMarket.com increased 6% since 31 January 2022, the company said.
Jason Tebb, CEO, commented:
"We have a clear strategy in place to build a tech-enabled property business, a "one stop shop" for agents and we are delivering. Our continued operational and strategic progress is evidenced by our good set of results and the belief shown in us by agent customers who have committed their long-term futures to OnTheMarket.
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We continue to offer exceptional value, as well as an increasing range of products and services, that help our customers win instructions, sell or let properties, make efficiency and cost savings and earn incremental revenues. The value and breadth of our products and services are key to retaining and growing our share of customer spend."
View from Vox
Overall, a solid set of interim results from OnTheMarket with continued growth in revenues, ARPA, and New Home sales. Continuous renewal of major client contracts signed on since IPO testifies to the value of the company's proposition, further underpinned by a 73% increase in agency spend on additional products.
OnTheMarket reported a "strong pipeline of additional products and services planned", representing further value down the line should these projects convert to revenue as well as the company's previous new offerings have.
While there is much macro-economic and geopolitical uncertainty in markets currently and a cost-of-living crisis unfolding in the UK, HMRC data indicates that the UK housing market has seen normal transactional numbers in the past 6 months.
In this context, OnTheMarket's high-value advertising offerings are appealing to customers looking to generate valuable leads in the current environment, while using value-oriented technology solutions that enable winning new instructions and efficiently interacting with buyers, sellers, tenants, and landlords.
OnTheMarket said it remains confident in meeting full-year expectations. The company expects further revenue growth, and strategic/operational progress, with full-year adjusted operating profit weighted towards 2H 22/23. Revenue growth, including existing and newly launched products, combined with a largely fixed cost base, should contribute to increased operating margins for the company.
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