22nd Oct 2020 10:07
(Alliance News) - Moneysupermarket.com Group PLC on Thursday said revenue dropped across all of its businesses in the third quarter, with the company blaming the "disruption" caused by the pandemic.
Shares in the price comparison website were down 6.1% in London on Thursday morning at 250.80 pence each.
In the three months to September 30, Moneysupermarket's total revenue dropped 16% year on year to GBP85.1 million. Insurance revenue fell 8% to GBP45.7 million, while Money revenue fell 40% to GBP12.5 million, and Home Services revenue fell 13% to GBP15.5 million.
Within its Insurance unit, Moneysupermarket said its home and life insurance declined year on year and travel insurance revenue remained "negligible".
Moneysupermarket said the "trading dynamics" in the third quarter for its Money unit were similar to the second quarter, with "tightened lending criteria and low product availability in banking leading to weak performance".
"We continued to see good levels of search demand for lending products," the company added.
In the nine months to September 30, total revenue was down 11% to GBP268.4 million.
Chief Executive Peter Duffy said: "I'm delighted to have joined Moneysupermarket Group, a business that is helping households save money in such challenging times. Our markets continue to be impacted by Covid-19, which is affecting our current performance. However, the Group benefits from strong brands and high levels of cash conversion, so we are well positioned to weather this period of economic uncertainty and deliver future growth."
Looking ahead, Moneysupermarket said its Insurance unit is benefiting from "strong but slowing market growth" for motor insurance.
"We have seen little improvement in lending criteria or banking product availability, and the travel market remains severely disrupted. The current low level of savings available in energy is likely to limit growth in Home Services during the fourth quarter," the company added.
By Paul McGowan; [email protected]
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