(Sharecast News) - Price comparison website Moneysupermarket said annual core earnings would be at the upper end of guidance after third-quarter trading came in ahead of expectations, driven by customers switching financial products and looking for better deals amid the cost-of-living crisis.
Revenue in the three months to September 30 rose 33% to £102m. Sales in the company's money channel were up 42% "with particularly attractive products available in banking".
In Home Services, broadband and mobile saw good growth, Moneysupermarket said, noting that September marked the anniversary of the closure of the energy switching market as gas prices started to soar and households were hit with crippling bills.
"The conditions in the wholesale energy market and the introduction of government support measures, including the Energy Price Guarantee, mean it is unlikely that energy switching will return in 2023," it added.
Travel weakened during the quarter as consumer sentiment softened demand with revenue around half of pre-pandemic levels.
"The cost-of-living crisis makes our purpose of helping households save money as important as ever. This quarter was another good performance. There are early signs of improving trends in the Insurance market, and in Money more consumers are finding attractive products to switch to," said chief executive Peter Duffy.
Customers looking for better deals would be "music to the ears" of Moneysupermarket, said AJ Bell investment director Russ Mould.
"It's not all perfect though, as the energy switching market has effectively shut up shop on a temporary basis, and weaker consumer sentiment has trickled through to weaker demand for travel insurance."
"Newspapers and mainstream news websites are full of stories giving personal finance tips and a large majority will recommend shopping around for better deals. Therefore, one might expect sales momentum to remain strong for Moneysupermarket well into 2023."
Reporting by Frank Prenesti for Sharecast.com
Moneysupermarket.Com (MONY)