Travel and insurance uplift helps drive first quarter revenues at Moneysupermarket
The insurance and travel sectors have helped lift the first quarter performance of price comparison website Moneysupermarket.com.
The group, based in Ewloe, near Chester, issued a trading update that showed total revenues had grown from £92.3m to £106.3m in the period.
Insurance showed a 23% improvement at £50.6m-worth of sales, and travel achieved a 63% uplift at £5.4m in revenues.
One year after the introduction of the FCA General Insurance pricing regulations which significantly reduced the market in Q1 2022, car has recovered strongly supported by double-digit growth in market switching volumes. Travel insurance also grew with revenue at circa 50% above 2019 levels.
Money growth reflected strong promotional offers in banking, although this was partially offset by the continuing weakness in borrowing conversion, particularly in loans.
The Home Services performance benefited from attractive mobile offers. The group launched its first fixed energy tariff since October 2021 at the end of March, but it was a limited size collective deal that will have no material impact on revenue. It said it still does not expect a significant energy switching market in 2023.
Travel grew strongly as the sector continues to recover.
The group said the factors affecting its markets are unchanged from those outlined in the preliminary results in February. But the board said it continues to be confident of delivering market expectations for the year.
Peter Duffy, CEO, said: “This is a strong performance led by recovery in Insurance and Travel. Our strategy of making it easier for people to save on more of their bills is going well and means we’re helping consumers cope with cost of living pressures.”
Russ Mould, investment director at Manchester investment platform, AJ Bell, said: “Comparison site MoneySuperMarket has made an encouraging start to 2023 as people become more active in switching to save money on credit cards, car insurance and the rest.
“Holidays tend to lift the mood and they are undoubtedly boosting sentiment at MoneySuperMarket, as people get online to seek out the best deals to insure their latest trip.
“The post-Covid return of travel insurance has helped to make up for the pause in switching in the energy market as deals dried up amid surging wholesale prices. Now there are hints energy could be coming back before too long.”
He added: “There is an argument that MoneySuperMarket’s services have never been more crucial. With households watching every penny the incentive to look for a better deal on regular bills is as high as it has ever been.
“Price comparison remains a highly competitive market and that means a chunky marketing cost for MoneySuperMarket to keep its brand front of mind. Though it does have an advantage due to its longevity and existing brand awareness.
“The company is also innovating to offer services around areas like automatic switching and partnerships with third parties to help give customers a greater depth and breadth of information to make their decisions.”
