Shares in Moneysupermarket fell more than 10 per cent in the first hour of trading this morning after the company said revenues in its home services division had dropped by a third year-on-year.
Revenue for the first half of the year in home services, which includes gas and electricity, fell by 33 per cent to £16.9m, it said today.
The firm blamed an evolving energy market and the “lack of blockbuster energy deals from providers” for its failure to switch as many people to different firms.
Analysts at Liberum said: “The company’s comments suggest [the energy switching market] will not be as beneficial in the future as in the past.”
The firm was forced to adjust its outlook for the year, saying operating profit will now be at the lower end of its previous guidance. It also noted trading in the first few weeks of July was in line with the second quarter.
The poor home services performance overshadowed a group-wide revenue increase of five per cent to £165.3m, with adjusted operating profit rising by three per cent. The biggest segment, insurance revenues, rose by 18 per cent year-on-year to £88.6m the first six months of the year
The results are the first under its new chief executive, former John Lewis retail director Mark Lewis. Lewis joined the firm in May, after his predecessor Peter Plumb announced he would leave last August.
The chief executive said the firm saved customers £1.1bn during the six-month period, a 17 per cent increase.
Lewis said: "Our focus now is on using our tech investment to find new ways to help our customers, particularly on mobiles, and improving our everyday energy switching."