OnTheMarket this morning announced a pre-tax loss of £5.7m in the six months to the end of July.
It said that it had group revenue of £7m in the first half of its financial year, during which it floated on AIM and raised £30m through the issue of shares.
Since then, it has recruited more offices, taking the total number to over 11,000 – mostly on free listings. As a result the average revenue per advertiser per month has fallen to £153, down from £194.
OTM was expected to make losses, and the company told the stock market this morning that it has had “a strong start to delivering our transformational growth strategy”.
CEO Ian Springett said: “We said that we would be seeking to rapidly expand our agent base and this has grown from 5,500 branches under listing contracts at 1dmission to more than 11,000 as at 1 October 2018.
“We also committed to substantially higher marketing spend to increase traffic to the website: we launched a new national TV campaign in September, ramped up our expenditure on digital marketing and have run high-impact poster advertising.
“This has resulted in our highest ever traffic performance in September with 17.4m visits.
“Finally we undertook to invest in the OnTheMarket field sales and IT teams to enable us to provide enhanced levels of service for our agent customers and a premier search experience for property-seekers. As at 1 October 2018 we have grown those teams from 36 at Admission to 92.
“Compared with February 2018 when our IPO took place, OnTheMarket has doubled offices and properties listed, trebled monthly visit traffic and quadrupled email and telephone leads to agents.
“Our progress to date and the encouraging support for an agent-backed portal give us confidence that we can continue to build on this early growth to develop a market-leading, agent-backed portal.”