Moneysupermarket launches mortgage comparison product

Mark Lewis

Price comparison website Moneysupermarket.com has today announced the launch of a new product to help customers find the right mortgage for them.

Podium has been formed to build a mortgage comparison tool and was unveiled in today’s interim results, to June 30, by the group, based in Ewloe, near Chester.

Chief executive Mark Lewis said: “We all know finding a better mortgage is complicated.

“We said we would do something about this and today we announce Podium, a new mortgage fintech, to build a comparison tool to bring customers the digitisation of mortgages – an easier and better way to arrange the mortgage that suits them.”

He also revealed good progress in a number of areas, including better revenues and pre-tax profits.

Turnover rose 5% to £173.7m, while pre-tax profits of £51.7m compared with £49.5m a year ago.

Mr Lewis said the results were as planned, with revenues driven by increased energy switching, and a solid performance in insurance.

He added that the group’s adjusted EBITDA of £62m is also in line with expectations.

The group said it was progressing with its Reinvent strategy to reaccelerate core growth and unlock new market growth.

A £5m investment in customer experience optimisation and product engineering teams is on track, while cash generation remains strong.

Moneysupermarket generated £43m of operating cash during the period, and net cash of £24m.

Mr Lewis said, to demonstrate the group’s confidence in its Reinvent strategy, the interim dividend has been raised by 4% to 2.95p per share.

He said: “Our trading is on track and our Reinvent strategy to help people save more money across more household bills, is moving ahead.

“In particular, our expanding product engineering hub is making it easier for customers to switch.”

Looking ahead, he added: “The board remains confident of delivering market expectations for the year.”

Breaking down revenues to specific sectors, the group saw insurance income rise by 4% over the six month period to £93.3m; money £44.5m (2%); home services £22.5m (23%); core group revenues £160.3m (5%); and other revenues £13.4m (3%).

Shares in Moneysupermarket rose almost 8% in early trading, to 333.9p.

Russ Mould, investment director at Manchester investment platform AJ Bell, said: “The excitement around price comparison site Moneysupermarket may have less to do with the publication of its first half results and more to do with the announcement of a new mortgage fintech joint venture called Podium.

“This venture is aimed at developing a mortgage comparison tool. In the longer term the mortgage market, which the company argues is ‘ripe for disruption’, could provide a material avenue for growth.

“Podium is one of several initiatives the company is working on under its Reinvent strategy, which includes a new app and the provision of price comparison services on third party sites.

“In the interim, the business remains solid with revenue up 5% and operating profit up 7%. A more modest 4% increase in the dividend may reflect the investments the Moneysupermarket is making in the business.”

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