Zoopla's innovation strategy pays off with mega profit growth in half-year results

 
Francesca Washtell
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Zoopla released its half-year results today (Source: Getty)

Online property portal Zoopla continued to shrug off competition today as it released robust growth in its half-year results over the six months ended 31 March.

The figures

Revenues grew 130 per cent to £96.4m, while adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) rose 89 per cent to £40.5m. This followed the inclusion of six months of trading for its Comparison Services division (it bought Uswitch last year).

The company's pre-tax profit was up 53 per cent to £29.5m.

Comparison Services outperformed in the first half, with growth of 37 per cent to 16.2m users, and record levels of energy and communications switches.

Read more: Zoopla shrugs off competition

Property listings grew three per cent to 854,000, reflecting an increase in the total number of property partners.

The company also reported strong traffic with over 300m visits to the Group’s websites and mobile apps, of which over 68 per cent were via mobile.

Zoopla Zoopla | mobile image

Why it's interesting

At the end of April Zoopla acquired the Property Software Group (PSG) for £75m. The deal, under which PSG will join the likes of uSwitch and PrimeLocation, gives Zoopla access to a number of systems used by the property industry, including cloud-based services Alto and Jupix, desktop systems Vebra, Core and CFP and newly launched software MyPropertyFile and MoveIt.

The group also threw its weight behind the next generation of property technology firms in February, when it invested £1m in four start-ups.

The start-ups include Landbay, a peer-to-peer lender; Trussle, an online mortgage adviser; FixFlo, an online platform, which helps agents manage tenant maintenance issues and repairs; PropertyDetective, a website which provides homebuyers with facts on their neighbourhood such as crime rates, schools and whether the property sits under a flight path.

These moves have followed the appointment of Andy Botha, formerly of Notonthehighstreet.com, as the online retailer's chief commercial and financial officer.

What Zoopla said

Alex Chesterman, founder and chief executive of Zoopla, said:

We continue to lead innovation and further differentiate our offering in line with our mission to be the best resource for consumers when finding, moving or managing their home and to be the most effective partner for related businesses.

We have launched a number of exciting new features for both consumers and professionals including our "Running costs" tool which helps our users understand the total costs of occupying any property and our award-winning "AdReach" retargeting product which helps our partners win more business.

Following the end of the period, we announced the acquisition of the Property Software Group and have begun integrating the business into the ZPG family. This deal will transform our relationship with property professionals, providing the UK's first-end-to-end business solution which will enable them to both generate increased revenues and to engage more effectively with their clients.

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