Zoopla zips to new high as interims excite

Strong half-year results from Zoopla Property Group helped the shares extend their highs, as a powerful performance from new addition uSwitch added to the continued recovery of the core property arm.

With current trading remaining good, management expect full year adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be at the top end of market expectations.

Revenues for the six months ended 31 March of £96.4m were 130% higher than the same period last year, with profit before tax up 53% to £28.1m.

Adjusted basic earnings per share rose 82% to 6.9p, giving the board confidence to lift the interim dividend 50% to 1.5p per share.

Noting the property services division had enjoyed 12 consecutive months of UK agency partner growth, average revenue per advertiser increased across every market 'verical' - UK estate agency, new homes, overseas and commercial.

With a record average audience of more than 50m visits per month since the beginning of the calendar year, the websites attracted a 5% incrase in the number of clients advertising with the group to 16,858 by the period end.

UK Agency partners increased by 4% to 12,956 as Zoopla celebrated churn rates returning to normal historical levels during the period, having been hit by the emergence of new agency-owned rival OnTheMarket.

The £75m post-period acquisition of the Property Software Group is also expected to underpin future growth, adding its wide range of software and workflow solutions for the property industry.

Founder and chief executive Alex Chesterman said that the second half would be helped by the launch of a number of new features for both property consumers and professionals, including a 'running costs' tool which helps users understand the total costs of occupying any property and the 'AdReach' retargeting product which helps agency partners "win more business".

Price comparison site uSwitch performed ahead of expectations, experiencing five of its best ever trading months and with the average revenue per lead (ARPL) increasing to £3.56 from £3.32 a year ago and the number of leads up 37% to 16.2m.

Chesterman said this was thanks to record switching volumes in both the Energy and Communications verticals as a result of "seasonality, our market-leading collective switch, energy supplier price cuts and a highly-competitive environment for broadband deals".

Broker Canaccord said uSwitch should benefit from a number of long-term growth drivers and was bullish on its prospects, with analysts noting that on next year's forecasts, Zoopla's shares were offering a near-25% discount to rival Rightmove

By 0935 BST on Wednesday, the shares were up 4.5% to 321p.