19th Feb 2024 10:14
(Alliance News) - Moneysupermarket.com Group PLC results beat analyst expectations on Monday, after "exceptional trading" in Insurance helped to drive double-digit topline growth in 2023.
The Chester, England-based price comparison website said annual revenue grew 11% year-on-year to GBP432.1 million in 2023 from GBP387.6 million the year before. Shore Capital was expecting revenue to rise to GBP418.8 million.
The firm said full-year Insurance revenue grew by 28% to GBP220 million.
Shore Capital analysts said: "Turning to segmental revenue,the Insurance and Travel verticals (51% and 5% of total) led the way with YoY growth of 28% and 33%, driven by growth across all categories and a rebound in motor insurance (post regulation changes) / strong post pandemic momentum, respectively. Home Services (23% of total) posted a 2% YoY decline with the absence of energy switching again a key feature, and Cashback revenues (14% of total) were flat YoY reflecting the impact of economic conditions on discretionary spend."
Pretax profit increased 8.1% to GBP92.1 million from GBP85.2 million.
The firm lifted its final dividend slightly to 8.9 pence per share from 8.6p a year prior, increasing the total payout to 12.1p from 11.7p.
AJ Bell's Russ Mould said: "That the company is beating expectations without a widespread return of energy switching is a sign the business is in a healthy place."
Looking ahead, the firm said it expects no increase in energy switching revenue in 2024, with comparatives in Insurance to become "tougher", especially into the second half.
"However, our trading performance and momentum in our strategic execution, gives the board confidence that group [earnings before interest, tax, depreciation and amortisation] will be within the current market consensus range," the firm said. It cited the consensus range as GBP133.8 million to GBP146.2 million. This would represent an increase from 2023's GBP131.9 million.
For financial 2024, Shore Capital forecasts revenue to grow 4.7% to GBP452.5 million and adjusted pretax profit of GBP121.9 million. Moneysupermarket on Monday reported operating cashflows before tax payments of GBP130.8 million for 2023, up 6.9% from GBP122.4 million in 2022.
For 2025, Shore Capital is forecasting revenue of GBP506.6 million and adjusted pretax profit of GBP142.4 million.
Chief Executive Officer Peter Duffy said: "We helped customers save a record GBP2.7 billion in 2023. The more we can help households save, the more the Group grows. We're proud that in tough times for consumers, MoneySuperMarket, MoneySavingExpert and Quidco have been able to make a real difference for so many."
Shares in MoneySuperMarket were down 3.3% to 243.00 pence each in London on Monday morning.
By Sophie Rose, Alliance News senior reporter
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