Advertising pays off for Moneysupermarket

A HIGH profile television advertising campaign has helped push up revenues at the price comparison website Moneysupermarket.com.

The Chester-based group said it spent an extra £2.5m on advertising in the six months to June 30. The centrepiece of this campaign was a TV advert starring the stand-up comedian Omid Djalili.

The firm expects to report half-year sales of £71.5m, up 5%, according to a trading statement ahead of interim results.

It credits the advertising campaign and the launch of dedicated channels for credit cards and home and car insurance for the growth which comes during a time of increased competition from rival websites such as Confused and Comparethemarket.
 
Moneysupermarket earns money from commission on the sale of mortgages, credits cards, insurance and holidays. It has four divisions – insurance, money, travel and home services – which all saw strong sales growth of 10%, apart from travel where revenues slumped by 20%.

“The travel vertical has continued to be managed for margin in what remains a difficult market,” said the business, headed by Peter Plumb, right.

Earnings before interest, tax, depreciation and amortisation are expected to be around £18m, down from £18.6m last year due higher levels of investment. “Profitability improved throughout the period as the group began to see returns on these investments,” said the company.

At the end of June the group had cash balances of some £28.5m.