Moneysupermarket reported a drop in interim profit and revenue as its core markets took a hit from the pandemic.
The price comparison site said the “exceptional market conditions” had led to its drop in revenue with a “mixed outcome” across its verticals
Revenue grew two per cent in the first quarter but the onset of the coronavirus crisis led to an eight per cent drop by the end of June.
Pre-tax profit fell from £60.4m to £51.4m, on revenue of £183.2m. Adjusted Ebitda was down 14 per cent to £62.8m while the basic earnings per share declined 19 per cent.
The interim dividend is maintained at 3.1p
The group had net cash of £7.5m versus net debt of £12.6m in 2019.
Why it’s interesting
The performance of Moneysupermarket’s insurance arm was hit during April and May driven by lockdown measures, notably the closure of car dealerships and people driving less.
Revenue in April and May was down 30 per cnet and 25 per cent respectively year on year, while travel insurance was “negligible” during rhw quarter.
Moneysupermarket said while motor and home insurance have recovered to year-on-year growth, life insurance remains below 2019 levels and there has been little recovery in travel insurance.
The site’s Money division struggled throughout the quarter with consistent declines in April, May and June of 43 per cent, 45 per cent and 44 per cent respectively. The company said its performance “remains highly suppressed” due to the tight lending criteria.
What Moneysupermarket said
Chief executive Mark Lewis said: “Covid-19 and the lockdown measures have significantly impacted our core markets, but our brands MoneySavingExpert and MoneySuperMarket have risen to the challenge providing useful advice and savings tips to millions.”
“Our business model has proved resilient, generating good cashflow throughout the crisis and giving us confidence for the future.”