Moneysupermarket posts strong first quarter as travel recovers

18th Apr 2023 07:37

(Sharecast News) - Moneysupermarket reported a strong first quarter trading performance on Tuesday, underpinned by a recovery in the insurance and travel segments.

The FTSE 250 company's total revenue for the quarter was £106.3m, up 15% from the same period last year.

Its insurance revenue grew 23% to £50.6m, reflecting a recovery in the car market, which was significantly reduced in the first quarter of 2022 due to the FCA General Insurance pricing regulations.

The firm said the market saw double-digit growth in switching volumes, contributing to the recovery.

Travel insurance also grew, with revenue around 50% above 2019 levels.

Money revenue was ahead 9% at £26.9m, driven by strong promotional offers in banking.

However, the weakness in borrowing conversion, particularly in loans, partially offset the growth.

Home services revenue was up 5% at £9.6m, which Moneysupermarket put down to attractive mobile offers.

Although the company launched its first fixed energy tariff since October 2021 at the end of March, it was a collective deal limited in size that would have no material impact on revenue.

The firm said it still did not expect a significant energy switching market in 2023.

Travel revenue was ahead 63% at £5.4m as the sector continued to recover from the Covid-19 downturn.

In cashback, meanwhile, good growth in travel offset lower activity in other channels amid the weaker consumer spending environment.

The firm said its outlook remained positive, with the board confident in delivering market expectations for the year.

Moneysupermarket said the factors affecting its markets remained unchanged from those outlined in its preliminary results in February.

"This is a strong performance led by recovery in insurance and travel," said chief executive officer Peter Duffy.

"Our strategy of making it easier for people to save on more of their bills is going well and means we're helping consumers cope with cost of living pressures."

At 1140 BST, shares in Moneysupermarket.com Group were up 1.13% at 251p.

Reporting by Josh White for Sharecast.com.