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Record revenues for Zoopla owner but acquisitions cut into profits

ZPG plc, the company which owns and operates the Zoopla brand as well as uSwitch, has delivered a strong set of half-year results this morning despite some of its property rivals feeling the squeeze in the last six months.

The business has enjoyed record revenues in the six months to 31 March, rising to £117.9m from the £96.4m it brought in during the first half of last year.

However, the company has seen year-on-year profits drop by a quarter from £22.6m to £16.9m, as costs associated with the acquisitions of Hometrack and Expert Agent, and its move to new headquarters pushed up operating costs.

That being said adjusted EBITDA at the firm, which also owns PrimeLocation and Property Software Group, was still up by 11% rising to £45m in the last six months, while a rise in mobile traffic fuelled a record number (314m) of visits to its stable of websites.

Chief Executive Officer, Alex Chesterman, said that the company remained optimistic about its prospects over the coming months.

He commented: “We remain incredibly excited by the underlying opportunities within each division and our unique cross-sell opportunities as we deliver on our mission to provide the most useful resources for consumers when finding, moving or managing their home and being the most effective partner for related businesses.

“We continue to lead innovation in our markets and look forward to developing and launching further products as part of our integrated proposition.”

The figures come despite growing concerns about the UK property market’s resilience in the face of buffeting economic and political headwinds.

Figures released yesterday revealed that mortgage applications were down in April while some property firms, including London-focused estate agents Foxtons, have begun to struggle in the face of a slowing market.

However, ZPG’s UK-wide reach and diversified portfolio of property companies and services seems to be insulating it from some of the more negative impacts, with a 44% increase in revenues at its property division highlighting its continuing strength.

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