Credit card demand drives Moneysupermarket earnings
STRONG earnings growth has continued into the third quarter for price comparison website Moneysupermarket.com
In an interim management statement covering the period since July 1, the business, based at Ewloe near Chester, said revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 5% and 26% respectively.
The company, which has appointed Costa Coffee finance director Matthew Price as its chief financial officer, said it was seeing a similar trend in the fourth quarter.
However, much of the profit growth was associated with demand for credit card and current account services at MoneySavingExpert which the group acquired from Martin Lewis for £87m in June 2012. After stripping out this contribution revenues and EBITDA were up by 3% and 6%.
The business earns money from commission on the sale of mortgages, credits cards, insurance and holidays. The company has four divisions: insurance, money, travel and home services, and all but money saw growth.
Moneysupermarket said revenues from the money arm were 4% lower mainly due to the company’s decision not to promote pay day lenders. Revenues from savings accounts were also lower, but income associated with credit cards was 11% higher. Revenues at MoneySavingExpert were up 25% largely due to demand for credit products.
Chief executive Peter Plumb said: “MoneySuperMarket continued to make progress in the third quarter despite a slow start. Investments we made in our energy business early in the year, the acquisition of MoneySavingExpert in September 2012 and our growing travel business contributed significantly in the third quarter and demonstrates the value of our increasing diversity.
“As we look forward to the rest of the year and beyond we’re confident we can help every household make the most of their money and that means we are also confident of MoneySuperMarket’s prospects.”
Matthew Price will replace Paul Doughty in the finance role in the first quarter of 2014. The company said Mr Doughty will leave “following a handover period”.
