(Alliance News) - Goco Group PLC on Tuesday said its pretax profit fell sharply in 2019, with the gocompare.com bill comparison website operator ramping up spending in its AutoSave business.
In 2019, revenue was marginally lower at GBP152.4 million from GBP152.6 million. Pretax profit was 53% lower at GBP15.8 million from GBP33.8 million in 2018.
"In 2019, GoCo Group delivered disciplined financial results which reflect our investment in AutoSave and focus on improving conversion in our core price comparison business. We are confident that this financial discipline is enabling us to deliver near-term profits," Goco said.
The AutoSave business automatically switches subscribed customers to the cheapest provider available to them.
The company reported a 12% rise in marketing spend to GBP89.5 million, with administrative expenses were 17% higher at GBP30.7 million.
The company's full-year dividend was 44% lower at 0.9 pence per share from 1.6p.
Savings made by Goco's customers, one of the company's performance metrics, fell by 4.5% to GBP980 million, with customer interactions down 3.3% to 26.6 million. Average revenue per interaction was 1.9% lower at GBP4.96.
The company said it is "confident" of meeting its expectations for 2020.
Chief Executive Officer Matthew Crummack said: "We enter 2020 in a strong strategic position and we are encouraged that the market has validated our AutoSave concept.
"Our progress over the last twelve months, which includes the growth of our AutoSave business to over 300,000 customers and the successful launch of our customer focused proposition on GoCompare, has demonstrated our ability to invest and innovate to revolutionise the industry."
Shares in the company were down 0.9% to 80.20p each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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