Advertising pays off for Moneysupermarket
PRICE comparison website Moneysupermarket.com has seen big rises in sales and earnings after spending more on advertising.
In a trading update for the six months to June 30 the Chester-based firm said it expects adjusted half-year revenues to come in at £88.3m with earnings before interest, tax, depreciation and amortisation (EBITDA) at £22.8m.
It said these figures were 23% and 26% ahead of the same period last year.
The Chester-based business earns money from commission on the sale of mortgages, credits cards, insurance and holidays.
It has been driving more people to the site with high profile advertising, including sponsorship of ITV’s Britain’s Got Talent. Consequently its marketing spend outside the internet rose by 50%.
“The group will continue to invest in its brand in the second half and launched a new campaign in the first week of July. Offline marketing expenditure is therefore expected to continue to be ahead of the comparator period in the second half of the year,” said the company.
Moneysupermarket said it will receive a VAT rebate of £3.3m after striking a deal with HM Revenue & Customs over the tax treatment on some of its supplies.
At June 30 the group had cash balances of £32.1m after the payment of a dividend of £12.9m in May 2011. It remains debt free. Results for the half-year will be announced on August 2.
