Investment pays off for Moneysupermarket
HALF-YEAR pre-tax profits at Moneysupermarket.com have jumped 50% to £2.8m after the price comparison site benefited from a prime time advertising campaign and new products.
The Chester-based firm saw revenue rise by 4% to £71.6m in the six months to June 30. But adjusted earnings before interest, tax, depreciation and amortisation, that take into account costs associated with the 2007 flotation, fell 3% to £18.1m.
During the period the company invested £1.3m in its software and an additional £2.3m on its marketing budget.
It screened a high profile ad campaign starring the comedian Omid Djalili and launched new channels covering credit cards, motor and home insurance, and savings.
Visitor numbers to the site rose by 3% and revenue increased in three of its four divisions: money (11%), insurance (9%), and home services (9%). Travel continued to struggle, registering a 20% sales fall.
Cash balances were down to £28.3m after returning 67.8m to shareholders from July, 2009 to June, 2010. The interim dividend has been held at 1.3p a share.
Chief executive Peter Plumb said: “Moneysupermarket.com has delivered a strong performance in the first half as we started to reap the benefits of the targeted investments made in both our site and our marketing. Our brand is stronger and we are delivering on our aim of helping every household make the most of their money.”
Bruce Carnegie-Brown has been appointed as a non-executive director.
