UK property listing website Zoopla announced on Wednesday that it believes core earnings will be at the ‘top end’ of market expectations following a 53 percent rise in half-year profit due to an increase in online traffic to its platform with additional agents also listing properties.
Its comparison services division which recently acquired uSwitch earned £57.7m in revenue, the biggest contributor to the business after its acquision which was finalised in June 2015. Combined with the group this totalled its revenue to £96.4 million, a 130 percent gain.
The purpose of acquiring uSwitch was to diversify the business due to rising competition with rival OnTheMarket attempting to target the monopoly of Rightmove and Zoopla in the online property sector.
Zoopla did manage to boost the amount of UK estate agencies marketing on the portal by 4 percent compared to the prior year to 12,956 however this was compared to a prior period where it saw OnTheMarket take away some of its partners.
Alex Chesterman, chief executive, said:
I am delighted with the Group’s first half performance and our growth as we delivered both record revenues and Adjusted EBITDA.
We continue to lead innovation and further differentiate our offering in line with our mission to be the best resource for consumers when finding, moving or managing their home and to be the most effective partner for related businesses.
Since the period which the results covered has finished, Zoopla also acquired The Property Software Group for £75 million, a company which is a market leader in estate agency software.