COVID-19 hits Moneysupermarket results
Posted on October 22, 2020 by Jonathan Symcox
Listed comparison service Moneysupermarket has reported results impacted by COVID-19.
Group revenue declined 16 per cent in Q3, with the Ewloe, Wales-headquartered firm blaming “ongoing COVID-19 disruption affecting several channels”.
However it said its balance sheet “remains strong” with “robust operating cash flows”. Following payment of the dividend for the period to shareholders, it holds a net cash position of £5m.
Peter Duffy succeeded Mark Lewis as CEO last month, a move first announced in May.
“I’m delighted to have joined Moneysupermarket Group, a business that is helping households save money in such challenging times,” said Duffy.
“Our markets continue to be impacted by COVID-19, which is affecting our current performance.
“However, the group benefits from strong brands and high levels of cash conversion, so we are well positioned to weather this period of economic uncertainty and deliver future growth.”
Moneysupermarket Group said its home and life channel declined year on year and travel insurance revenue remained negligible.
Trading dynamics in money were similar to Q2, with tightened lending criteria and low product availability in banking leading to weak performance.
Home services grew in July, driven by strong energy performance on the MoneySavingExpert site. However, as the quarter progressed, revenue growth began to slow: the energy price cap fell while wholesale prices rose, with the result that the level of savings available to customers fell sharply and energy market switching reduced substantially.
Trading in TravelSupermarket remaining heavily subdued because of ongoing travel restrictions. However B2B broadband performed well.