23rd Apr 2014 07:46
LONDON (Alliance News) - MoneySupermarket.com Group PLC Wednesday said its overall expectations for the year are unchanged after reporting an increase in first-quarter revenue and earnings before interest, tax, depreciation, and amortisation.
In a statement, the price comparison website said revenue in the quarter ended March 31 increased by 8% on the year before, while EBITDA increased by 5%. Administrative costs were in line with the corresponding quarter last year, while offline marketing costs were in about 20% ahead of the same period last year in order to support new MoneySuperMarket and TravelSuperMarket advertising campaigns.
MoneySupermarket said revenues in the first few weeks of the second-quarter were flat with the second quarter a year before, while trading trends were largely in line with the first quarter of 2014.
Revenues in home services and travel continue to trade ahead, whilst insurance remains in line with last year, MoneySupermarket said, though revenues in its money division are fractionally behind the same period last year, driven by lower cash individual savings account volumes.
In the first-quarter, home services revenues were 59% ahead of the first quarter of 2013, though visitor numbers were 6% lower as the company continued to reduce spending on paid search for shopping and vouchers.
Utility switching volumes, which account for the greatest part of home services revenues, were stronger than the same period last year, reflecting the continued strength of the Cheap Energy Club operated by MoneySavingExpert.com which alerts consumers to savings available, measured against their current tariffs.
Revenues in travel were 41% ahead of the first-quarter of 2013 on visitor volumes that increased by 19%. Trading in package holidays, car hire and hotels has continued to improve, the company said, supported by improvements to the products offered together with increased offline media spend.
Revenues generated by MoneySavingExpert.com, including those from the group, were more than 30% ahead of last year. Trading was particularly strong in its money business with credit card revenues being the main contributor to the growth, MoneySupermarket said.
Insurance revenues in the first-quarter of 2014 were flat on visitor volumes that were 4% lower, while revenues in money were 4% higher than the first-quarter of 2013 on visitor volumes that were 10% lower.
"Helped by our increasingly diversified business, this was a good first quarter given the headwinds we've faced since last year," Peter Plumb, chief executive, said in a statement.
"Our investment programme is on track, including the delivery later this year of the best shopping experience for insurance customers, on mobile or desktop. The investment we are making in technology for the Money business is beginning to work well," Plumb said.
"I look forward to making it even easier for our customers to save more money, thanks to the GBP14 million we're spending on our capital investment programme this year," the chief executive added.
MoneySupermarket.com shares were early Wednesday quoted at 180.00 pence, down 3.5%.
By Samuel Agini; [email protected]; @samuelagini
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