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OnTheMarket (OTMP) Shares Surged 53.6% on Interim H1 Results

Simon Mugo trader
Updated 19 Oct 2023

The OnTheMarket plc (LON: OTMP) share price surged 53.6% after releasing its interim results for the six months ended 31 July 2023. The company revealed that its group revenues rose by 1% to £16.9 million from £16.8 million in a similar period last year.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The company noted that its average revenue per property advertiser (APRA) fell by 2% to £201 from last year’s £205. APRA represents revenues due from property advertisers before the company deducts the non-cash share-based agent recruitment charges for a specific period. The figure is then divided by the number of property advertisers. 

The new homes revenues showed an impressive growth of 26% from last year, boosted by the rise in advertiser numbers and Average Revenue Per Advertiser (ARPA). The adjusted EBITDA remained stable at £3.1 million, in line with the previous year. However, the adjusted operating profit witnessed a minor decline of 15%.

The balance sheet reflects strength, boasting a net cash position of £11.5 million, with no outstanding borrowings. This is an improvement from the January 31, 2023, financial status, which showed net cash of £11.3 million.

The company is making substantial progress in developing a distinct, technology-driven property enterprise. The average monthly advertisers have increased by 2%, totalling 13,323. Additionally, the period-end agency branches have grown by 1%, reaching 10,414.

The broader economic context poses challenges, particularly within the property market. Issues such as reduced transaction volumes, persistent inflation, elevated living costs, higher interest rates, and decreasing average house prices are anticipated to affect clients' businesses. 

OnTheMarket is directing its efforts towards growing advertiser numbers through various packages and short-term incentives. 

Jason Tebb, Chief Executive Officer of OnTheMarket, commented: “We are pleased with our performance in the first half, despite the difficult market conditions. Throughout this, we have stayed true to our commitment to agents by continuing to offer value at a time when they need it most. Underpinning our resilience are the strong foundations we have built. We continue to be supported by our agents, and this positions us well for the future. I would like to thank the OnTheMarket team for their continued efforts.”

OnTheMarket share price. 

The OnTheMarket share price surged 53.55% to trade at 108.25p, from Wednesday’s closing price of 70.50p.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading