Moneysupermarket growth slows in second quarter - UPDATE

11th Jul 2013 07:51

Price comparison site Moneysupermarket.com generated strong earnings growth in the first half despite slower trading in the second quarter due to ever-changing Google algorithms.In a post-close trading statement the FTSE 250 company said half-year sales would rise by around 10% to £112m and earnings before interest, tax, depreciation and amortisation by 29% to £40m.Moneysupermarket (MONY) reported that group trading was hit in the second quarter by a lower rate of growth from the insurance products due to a change in the Google search engine resulting in lower visitor numbers to the site. The company reassured that, as has happened in the past, it was adapting to the algorithm changes and was working on regaining higher ranking in natural search in insurance using search engine optimisation.The financial position was reported to remain strong, with cash balances of £26m on June 30th. Verification of the payment of a special dividend payment of £70m was given, with the payment date confirmed July 26th.Broker Investec said the results appeared as expected, with profit slightly above previous forecasts."We remain buyers for online upside based on a more coherent online consumer brand and growth upside on a reasonable multiple given online momentum," said analyst Steve Liechti.Seeing key risks as being from the competitive market and macroeconomic forces, he noted that there was no detail on other business verticals and so assumed Travel and Home Services "remain strong" with Money "still under pressure given limited bank savings demand".Shares in Moneysupermarket had recovered from earlier losses to be down 1.7% to 200.1p by 12:26 on Thursday. OH