Rightmove's investment in artificial intelligence appears to be yielding positive results, with analysts highlighting increased consumer engagement and stronger lead generation after the property portal's recent half-year financial report.
Shares in Rightmove rose by almost 2% by the close of trading on Friday. Investors reacted positively to results that largely met market expectations, even as the housing market softened and full-year revenue guidance was reduced due to ongoing weakness in the new homes sector.
The company reported first-half revenue consistent with forecasts, while underlying operating profit slightly exceeded expectations. Analysts noted that the strength of the core estate agency business, supported by high customer retention and continued product investment, helped to counteract the downturn in new-build activity.
Much of the focus was on "Ask Rightmove", the portal's AI-powered conversational search tool. Rightmove states this tool is boosting consumer engagement and improving lead conversion. The company also reported that users are spending more time on its platform, which reinforces its position in the online property market.
Anthony Codling of RBC Capital Markets commented that Rightmove has shown "impressive resilience in the face of an uncertain housing market". He added that the revenue guidance reduction is solely due to the anticipated weakness in New Homes, not a demand issue in the core Agency business.