What’s new: OnTheMarket has announced that “as at 2 December 2019, over 3,000 more offices had been signed under new paying contracts to list all their residential properties at OnTheMarket . The progress builds on the support from thousands of firms already on long-term paying contracts at the time of admission to AIM in February 2018.”
Since “30 September 2019, when OnTheMarket had 2,346 more offices signed under paying contracts”, OTMP has added over 654 offices.
Conversion of these offices onto paying contracts is a key strategic focus for OnTheMarket.
Ian Springett, CEO, observed that the conversion onto paying contracts “is further encouraging evidence of growing agent support. The ongoing growth in the number of branches under paying contracts is key to the Group’s transition into profitability. Agent backing in a variety of practical ways is key to creating an edge over our rivals in the portals market.
“Our continued progress in attracting more agents to support the portal and our early success in attracting house-builders give us encouragement as we focus on achieving our key objectives for the coming year.”
Zeus view: This announcement shows OTM is making good progress in converting “first year free contracts” to “paying contracts”.
We maintain our forecasts.