MoneySupermarket revenues jump 15% on booming money and travel demand but group warns energy unlikely to bounce back next year
- Revenues in the third quarter hit £101.9m, up from £76.4m a year ago
- All business segments excluding home services post strong growth
MoneySupermarket has lifted its full-year guidance after revenues jumped 15 per cent in the third quarter, lifted by strong demand for its money and travel offering.
Revenues in the three months to 30 September hit £101.9million, up from £76.4million a year ago, with money revenues soaring 42 per cent to £28.1million and insurance income jumping 10 per cent to £45.3million.
Excluding its cashback business, which was formed via its acquisition of Quidco last October, the comparison website posted revenue growth across all segments with the exception of home services.
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MoneySupermarket shares soared 8 per cent to 213.6p by midday on Tuesday, bringing a 3.6 per cent year-to-date loss.
The home services division saw revenues dip 26 per cent to £10.3million during the quarter, meaning it contracted by 51 per cent annually over the first nine months of 2022.
It said that while home services had seen ‘good growth’ across broadband and mobile, it has been hampered by the effective end to consumer switching options in the energy market.
It told investors on Tuesday: ‘The conditions in the wholesale energy market and the introduction of government support measures, including the Energy Price Guarantee, mean it is unlikely that energy switching will return in 2023.’
Thanks to a better than expected quarter, the group said it now expects full-year earnings to be towards the upper end of market expectations.
Peter Duffy, chief executive of Moneysupermarket Group, said: ‘The cost-of-living crisis makes our purpose of helping households save money as important as ever.
‘This quarter was another good performance.
‘There are early signs of improving trends in the Insurance market, and in money more consumers are finding attractive products to switch to.
‘Our strong brands are well equipped to support consumers at this critical time.’
Head of investment at Interactive Investor Victoria Scholar said: ‘With the cost-of-living crisis and squeezed household budgets, consumers are desperately looking for ways to reduce their monthly bills.
‘This plays into the hands of MoneySupermarket which helps customers find cost saving on insurance, mortgages, and loans.
‘Mortgage rates in particular have soared in the aftermath of the mini-budget prompting flexible-rate mortgage holders to quickly seek better deals.
‘Shares are up this morning, extending recent gains with a more than 10 per cent jump over the last month.’