Property website Zoopla (ZPLA) expects profits to be at the higher end of the market’s expectations for the year to 30 September 2016.
Prior to the announcement, analyst had forecast earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of £69 million and £76 million, a clear improvement on the £48.7 million recorded a year earlier.
The strong earnings growth is thanks to more estate agents using its site, which has pushed up the number of properties advertised to 925,000 at the end of August.
This represents a 5% improvement in 12 months, which is the same growth rate in the number of agencies signing up to use its website.
Energy products comparison website uSwitch also contributed to what is set to be a strong year for the group. Management says Zoopla's comparison services division continues to ‘outperform’, which could justify the £190 million it paid for uSwitch in April last year.
Zoopla is trying to get more business from customers by helping them to get better deals on gas, electricity, personal finance products and other utility services.
There was no mention of any impact on the group from the UK’s decision to divorce itself from the European Union. The only hint is management stating that the property business is performing in line with expectations.
Investors will be scanning Zoopla’s full year on 30 November to see if demand has been affected since June’s referendum.
Until then management will update investors on strategy at a capital markets day next week (15 September).
Its shares moved 1.3% higher to 330.6p on the update.
