Moneysupermarket reports mixed first quarter

16th Apr 2024 08:41

(Sharecast News) - Moneysupermarket Group reported continued growth in insurance segments in its first quarter on Tuesday, with overall revenue up 8% at £114.6m.

The FTSE 250 price comparison platform said it saw a robust performance in the insurance sector, where revenue jumped 21% year-on-year in the three months ended 31 March, to £61.4m.

It said that growth was primarily driven by increased demand in car and home insurance, fuelled by sustained high levels of switching among consumers, despite a notable rise in car insurance premiums year-on-year.

However, other segments experienced mixed results, with the money segment declining 3% to £26m due to fewer attractive banking offers compared to the same period last year, while travel saw a 10% increase in revenue to £6m amid a competitive market.

Home services, particularly broadband switching, continued to face challenges in a competitive environment.#

Revenue from energy switching remained immaterial, consistent with the expectations the board set in 2023.

In the cashback segment, revenue increased 1% to £15.2m, reflecting momentum in services such as insurance, particularly with the launch of Quidco Compare on the group platform last year.

The company also reported continued growth in SuperSaveClub member numbers, its loyalty and rewards programme launched in September.

With over 300,000 members and an expanded range of 10 products, the firm said SuperSaveClub had proven to be successful in attracting customers more likely to make direct purchases and engage with the platform.

Looking ahead, the board said it anticipated that adjusted EBITDA for the year would align with current market expectations, maintaining a positive outlook for the company's performance in the coming quarters.

"Our mission is to help households save money," said chief executive officer Peter Duffy.

"We are delighted to see momentum in SuperSaveClub continue, with more customers able to save more money across more products.

"By helping UK households save on their bills, we create sustainable and profitable growth for the group."

At 0821 BST, shares in Moneysupermarket Group were down 2.02% at 216p.

Reporting by Josh White for Sharecast.com.