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Rightmove PLC on Friday warned operating profit growth could slow as it announced plans to ramp up investment on artificial intelligence capabilities. In response, shares in the Milton Keynes-based online property portal slumped 19% to 533.74 pence each in London on Friday morning. They had traded as low as 474.50p. Rightmove said between 2026 to 2028 it will accelerate investment in consumer innovation, AI-powered operations and research and development for new growth. This includes plans to transform the Rightmove app and AI-powered search capabilities, introduce AI interfaces to drive efficiency, and fast-track several opportunities for long-term revenue growth. In 2026, the incremental profit and loss investment will be around £12 million with a further £6 million capitalised. Chief Executive Johan Svanstrom said: ‘AI is now becoming absolutely central to how we run our business and plan for the future.’ ‘We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem,’ he added. Rightmove reaffirmed 2025 guidance and expects revenue growth of around 9%, within the existing guidance range of 8% to 10% growth. In 2024, the firm reported total revenue of £389.9 million. The company expects around 1% growth in membership and average revenue per advertiser growth of £95 to £105 for the year across Estate Agency and New Homes developers, unchanged, and 70% underlying operating margin, also unchanged. Rightmove introduced guidance for 2026 of revenue growth of 8% to 10% and underlying operating profit growth of 3% to 5%, reflecting the increased investment. In the six months to June 2025, Rightmove reported operating profit growth of 10% and an operating profit margin of 71% consistent with 2025 guidance for 70%. Analysts at Citi said: ‘The updated guidance for FY26 onwards infers low/mid single digit downgrades to consensus underlying operating profit.’ Between 2026 to 2028 - the investment phase - Rightmove sees revenue growth between 8% to 10% per annum but set wide ranges for underlying operating profit growth of 3% to 10% and earnings per share of 5% to 12%. By 2030, Rightmove is targeting revenue growth more than 10% per annum, underlying operating profit growth of more than 12% and EPS growth of more than 15% per annum. Over the period to 2030, Rightmove said it will continue to ‘grow and innovate’ in the core business and in new growth initiatives. ‘We continue to have strong conviction in the large market opportunity for the strategic growth areas, with a combined growth rate of around 20-30% per annum achievable for the medium term,’ it said. Rightmove said its capital allocation policy is unchanged. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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