19th Dec 2007 07:01
Moneysupermarket.com Group PLC19 December 2007 Moneysupermarket.com Group PLC ("Moneysupermarket.com" or the "Group"), the UK'sleading price comparison site, issues the following trading update relating tothe six month period ending 31 December 2007. The Group commenced trading on 22 June 2007 and, accordingly, the financialinformation below is presented on a pro forma basis to show what the financialresults would have been had the Group in effect been trading since 1 January2006(1). The Directors believe that this will allow users of the financialinformation to gain a better understanding of the underlying performance of thebusiness and is consistent with the presentation made in the prospectus. Thefull year results will be presented on the same basis. The Group indicated at the time of its interim results that trading in thesecond half of the year had begun strongly. The Group now expects that revenueand adjusted EBITDA(2) for the year will be no less than the current consensusof analysts' forecasts which show revenues of £160.9 m and adjusted EBITDA of£51.3m. Internet Revenues will have grown in excess of 60% in the year. • Revenues in the Money vertical for the second half of 2007 will be approximately 30% ahead of the same period last year. Visitor numbers have increased over the corresponding period in 2006. Revenue per Transaction (RPT) and Revenue per Visitor (RPV) have remained broadly consistent with the first half of the current financial year. The impact to date of the volatility in credit markets has been limited in the second half of 2007, although the Group has noted that a number of providers have recently tightened their underwriting criteria and raised their pricing to consumers. A number of providers within the subprime secured lending space, who do not necessarily have contractual relationships with the Group, have also withdrawn from the market. • Revenues in the Insurance vertical for the second half of 2007 will be approximately 75% ahead of the same period last year. The Group has seen an improvement in RPT over the period relative to the first half of the current year.(3) • Revenues in the Travel vertical for the second half of 2007 will be approximately 85% ahead of the same period last year. Visitor numbers have increased significantly over the corresponding period in 2006. RPT and RPV have been broadly consistent with the first half of the current financial year. • Revenues in the Home Services vertical will be approximately 140% ahead of the same period last year. Visitor numbers have increased significantly over the corresponding period in 2006. RPT and RPV have been broadly consistent with the first half of the current financial year. • Revenues in the Intermediary business will be approximately 25% lower than the same period last year but broadly in line with consensus. The Group began operations in Germany in October 2007 with the launch of thewebsite www.icero.de. There will be no significant revenues recognised in thecurrent year but the Group will have invested approximately £0.6m inestablishing the business over the course of the second half of the year. TheGerman operations were launched with a motor insurance channel and initialreactions have been relatively good. The Group intends to focus in 2008 onrefining its insurance offering to improve conversion and to extend its reachinto other verticals most notably Money. Commenting, Simon Nixon, Monesupermarket.com CEO and Founder said: "In the year that we listed on the London Stock Exchange we are happy to confirmthat we expect to report revenues and profits that meet expectations. Overallthe Group has had a very good year growing revenues and adjusted EBITDA inexcess of 50%. Second half trading has remained strong. We continue to haveenormous confidence in our business model and the benefit that price comparisonbrings to consumers and providers. Uncertainty in the financial markets remainsand has been ever-present through most of the second half of the year. This hashad little impact on our trading to date but visibility continues to remainlimited." The Group also announces that it has appointed UBS joint corporate brokeralongside Credit Suisse. Results for the year ended 31 December 2007 are due to be released on 26February 2008. Contact details Moneysupermarket.com Group PLC Paul Doughty Chief Financial Officer 020 7353 4200 Alexander Cowen-Wright Public Relations Manager 07802 455893 Tulchan Communications David Trenchard 020 7353 4200 Celia Gordon Shute 020 7353 4200 (1) Assuming a debt free acquisition at 1 January 2006, from which dateintangible amortisation commenced, and a share option charge which reflects theaverage charge over the vesting period of currently unexercised options. (2) Adjusted EBITDA is calculated by the Directors following certain adjustmentsto the historical compensation levels of the Group Directors and SeniorManagers. These adjustments reflect the Group Directors' and Senior Managers'profit share, discretionary bonus, and employers National InsuranceContributions from these historical compensation levels. Following the IPO theseelements of compensation no longer apply at these levels to these individualseach of whom has entered a new service contract. The charge for share basedcompensation relating to options issued pre-IPO have also been added back. The Directors anticipate presenting financial information on a similar basisuntil the final results for the year ended 31 December 2008. Thereafter theneed to present proforma Income Statement will not be required because therelevant comparator period will be consistent with the current period. (3) As noted in the prospectus the Group's visitor numbers during the periodbetween June 2006 and May 2007 were understated due to certain visitors notbeing assigned a unique global user ID. The issue was resolved in May 2007 andhas not impacted visitor numbers in the Insurance vertical after May 2007. TheGroup has been unable to quantify the exact extent of the understatement. It istherefore unable to comment upon visitor numbers and RPV both relative to thesame period in 2006 and the first half of 2007. 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