Google search changes hold back Moneysupermarket

PRICE Comparison site Moneysupermarket said second quarter trading had been affected by changes to Google’s search algorithms.

In a trading update for the six months to June 30 the Ewloe-based group said this had reduced the number of people looking at insurance products on the site.

Nonetheless, it expects the search changes to “settle down” and is forecasting healthy increases in earnings and revenues.

For the half-year it expects adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at £40m, up 29%, on revenues of £112m, up 10%.

Trading in the second quarter was slower than in the first due to less insurance business. “As has happened in the past, now the algorithm changes have settled down we are working on regaining our positions in natural search in insurance,” it said.

As at June 30 the Group had cash balances of £26m. It will make a special dividend payment of £70m to shareholders on July 26, as previously announced.