Last checked at 9 Jul 2010 07:00
9 July 2010
Moneysupermarket.com Group PLC - trading update
Moneysupermarket.com Group PLC (Moneysupermarket.com or the Group), the UKs leading price comparison site, issues the following trading update relating to the six month period ending 30th June.
The financial performance of the Group for the first half of 2010 has remained consistent with the position outlined in the Interim Management Statement released on 15 April and results for the period are expected to be in line with the Board's previous expectations.
Revenues for the period are expected to be in the region of £71.5m representing an increase of approximately 5% on the same period last year. UK internet revenues grew approximately 6% year on year. Excluding travel, UK internet revenues grew by fractionally more than 10% with the Money and Insurance and Home service verticals all growing at approximately 10%, maintaining the momentum from the first quarter. The Travel vertical has continued to be managed for margin in what remains a difficult market and revenues were approximately 20% down on the same period last year.
As outlined in the Interim Management Statement, the Group has invested in both its brand and product development in the period. Media spend was approximately £2.5m ahead of the same period last year reflecting the costs of establishing the new campaign launched in January 2010. Similarly third party costs incurred in product development increased by approximately £1.3m over last year as the Group accelerated its development plans. The results of the enhanced investment have been pleasing with gross margins increasing over the same period last year reflecting an increase in direct to site revenues in part aided by the new television campaign. The Group has also delivered new motor insurance, credit card and savings channels in the period together with a mobile application for vouchers. A new Home insurance channel has also been released to beta with a go live date scheduled for the third quarter. The new channels have significantly increased usability of the Groups offering and have helped improve revenues since their launch.
EBITDA is expected to be in the region of £18m for the first half of 2010 against £18.6m reported for the first half of 2009 reflecting the higher levels of investment. Profitability improved throughout the period as the Group began to see returns on these investments.
As at the end of June the Group had cash balances of approximately £28.5m.
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·; The information in this release is based on management information.
For more information, please contact:
Moneysupermarket.com Group PLC
Paul Doughty, Chief Financial Officer, 01244 665700
Ian Williams, Director of Communications, 07515 329671
Tulchan Communications
Susanna Voyle, 0207 353 4200