17th Feb 2022 09:44
(Alliance News) - Moneysupermarket.com Group PLC remained upbeat on the year ahead despite a surge in energy costs pummelling its Home Services unit in 2021.
The stock was up 2.2% at 191.10 pence early Thursday.
Revenue for 2021 fell 8.2% to GBP316.7 million from GBP344.9 million in 2020, with the firm noting Home Services was "heavily impacted" by wholesale energy prices.
The Chester-based price comparison website's full-year pretax profit fell 20% to GBP70.2 million from GBP87.8 million.
However, it maintained its full-year dividend at 11.71 pence, reflecting good cash conversion and confidence in its future prospects.
By division, Money revenue rose 20%, with sales close to pre-pandemic levels in the second half.
Insurance revenue fell 8%, with declining premiums and intensifying competitor activity reducing visitor numbers in car and home insurance. Demand for travel insurance began to recover in the second half, but weakened again in December on the emergence of the Omicron Covid variant.
Travel revenue fell 32%, with trading "negligible" in the first half of the year due to the pandemic restrictions but recovering in the second half. In the Cashback segment, the firm noted the first two months of Quidco within the group coincided with the peak online retail trading period of Black Friday, and the business traded in line with expectations.
Home Services revenue fell 34%, reflecting "significant disruption" in energy wholesale markets. Steep increases in energy prices from September led to providers removing tariffs from the market and consequently "negligible" energy switching.
"From October there were no switchable tariffs on our sites and therefore no revenue from energy," Moneysupermarket said.
For 2022, the company expects no energy revenue, though believes the energy switching market will return strongly in the medium-term.
Despite this, Moneysupermarket expects adjusted earnings before interest, tax, depreciation and amortisation in 2022 to increase to around the 2020 level. Adjusted Ebitda in 2021 was GBP100.5 million, down 7% from GBP107.8 million in 2020.
"Some end-markets were challenging in 2021, particularly travel and energy, with an inevitable impact on performance. We are better placed than ever for recovery in these markets, and to grow our business more broadly," the company said.
By Lucy Heming; [email protected]
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