17th Oct 2019 08:33
(Alliance News) - Shares in Moneysupermarket.com Group PLC fell sharply Thursday after revenue growth in the third quarter slowed significantly from the pace set earlier in the year.
Shares in Moneysupermarket were 10% lower at 347.50 pence in London on Thursday.
For the three months ended September, revenue rose 4% on the year prior to GBP100.9 million. This was driven by robust 3% growth in Insurance revenue to GBP49.9 million.
Home Services revenue advanced 21% to GBP17.7 million, helping to offset a 5% fall in revenue from Money products. The firm said the Money unit underperformed amid "continuing challenges in product availability".
For the nine months ended September, revenue grew 11% on the year prior to GBP300.2 million. This was after Money revenue grew 40% on the year prior and Home Services up 41%, with Insurance reporting a 3% increase in revenue.
"The group continued to grow in the quarter, with strong trading in energy showing that there are still big savings to be made by customers even though the price cap is lower," Moneysupermarket Chief Executive Officer Mark Lewis said.
"Even better, our Reinvent strategy continues to do more for our customers - the new MoneySuperMarket Energy Monitor service means our customers need never overpay for energy ever again," Lewis added.
For the full year, Moneysupermarket expects trading conditions to remain broadly the same as in the weaker third quarter. In particular, the firm expects the Money unit to weaken.
Despite this, the FTSE 250-listed firm remains confident of meeting its 2019 market expectations of adjusted earnings before interest, taxes, depreciation & amortisation of GBP141.9 million.
In 2018, Moneysupermarket generated adjusted Ebitda of GBP129.4 million on revenue of GBP355.6 million. Pretax profit stood at GBP86.6 million.
By Ahren Lester; [email protected]
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