Rightmove shares fell after OpenRent started packing for September exit

Rightmove (LSE:RMV) shares closed Tuesday on the backfoot, down 4.34%, after investors reacted to news that its ended a contract with a major customer.

The relationship with OpenRent, an online letting agent that accounted for just under 8% of all letting listings on Rightmove, is ending after the two parties failed to terms on a new deal.

OpenRent will terminate its membership with Rightmove effective 1 September.

Rightmove, meanwhile, attempted to assure investors with a statement telling the market that its full-year revenue and margin guidance would remain unaffected.

That guidance sees achieving a 7% to 9% increase in revenue, and an underlying operating margin of 70% for the year. It did, however, note that overall it is expecting to show a decline of up to 3% in site memberships.

Evidently, Rightmove is taking a stoic view and backing its market position.

In a statement, this morning, it said: “OpenRent's landlord customers will lose access to the UK's largest property-seeking audience.

“Rightmove remains the place for consumers to find more UK properties than any other portal, and in H1 2024, delivered 8 times the number of properties rented than the next largest portal

It added: “Over 80% of all consumer time spent on property portals continues to be spent on Rightmove.”

Analysts at stockbroker Panmure Liberum, meanwhile, described the termination as “understandable in the current environment” and do not expect to see a broader competition-related issue.

In London, Rightmove shares closed Tuesday’s trading session 23.8p or 4.34% lower priced at 524.2p.