uSwitch boost for Zoopla

The number of agency partners in the UK fell from 16,373 to 12,702 following the launch of rival portal Agents' Mutual, and the number of leads generated fell from 29.2m to 25.2m. However, annual revenue per agent (ARPA) grew by 11 per cent to £357 as agents continued to buy additional premium products. ARPA on new homes jumped by a quarter to £335, while revenue from commercial property generated £107, on the same measure, in the first year since its launch. Crucially, the level of churn in its agents slowed significantly as the going got tougher for Agents Mutual, and Zoopla recorded five consecutive months of partner growth from May onwards.

The acquisition of comparison services site uSwitch was completed in June, and in four months generated 9m leads from its energy and communication price comparison websites, a rise of 45 per cent from the same period a year earlier. In the year to September uSwitch saved consumers an average of £165 on their energy bills. Zoopla paid £160m for uSwitch, although given its strong progress, an additional £30m performance related earn-out is expected to be paid in full.

Property services operating costs were down 4 per cent at £39m, with increased staff costs offset by a lower marketing spend. However, total operating costs jumped by 45 per cent to £59m when including the comparison services division, as the marketing spend was increased to build brand awareness.

Analysts at Numis Securities are forecasting pre-tax profits for the year to September 2016 of £65m and EPS of 12.4p.