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Moneysupermarket.com (MONY)

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Tuesday 26 February, 2008

Moneysupermarket.com

Final Results

Moneysupermarket.com Group PLC
26 February 2008


26th February 2008

Moneysupermarket.com Group PLC Preliminary Results for the period ended 31
December 2007

Moneysupermarket.com Group PLC ('Company'), the UK's leading price comparison
website, is pleased to announce a strong set of results for the period ending 31
December 2007.

The Company was formed as a new holding company on 14 March 2007 and it acquired
Moneysupermarket.com Financial Group Limited and its subsidiaries (together the
'Group') on 22 June 2007. Accordingly, the Group is presenting consolidated
results for the period from 22 June 2007 to 31 December 2007. Revenues in the
period were £88.3m generating a profit before tax of £7.6m. Following a tax
credit for the period of £1.8m, total profit for the period was £9.4m.

The Company is also presenting a pro forma Income Statement below for the years
ended 31 December 2006 and 31 December 2007 to show what the results would have
been had the Company acquired Moneysupermarket.com Financial Group Limited on 1
January 2006 (1). The Directors believe this will allow the users of the
financial information to gain a better understanding of the underlying
performance of the business and is consistent with the presentation made in the
prospectus issued in connection with the listing of the Company. Unless
otherwise stated, commentary on the results relate to the pro forma Income
Statement and adjusted EBITDA (2) figures.

                      2007                        2006                       %
                     £'000                       £'000

Revenue            162,882                     104,459                    55.9%

Gross Profit       108,614                      63,798                    70.2%

Gross Margin        66.70%                      61.10%                  560bpts

Adjusted EBITDA     52,949                      33,683                    57.2%

Pro forma financial highlights

• Revenues increased by 55.9% from £104.5m to £162.9m with internet revenues 
  increasing by 63.7% from £93.0m to £152.2m
• Gross margins increased from 61.1% to 66.7% driven by an increase in direct 
  to site revenues and a change in sales mix in favour of the internet business
• Adjusted EBITDA increased by 57.2% from £33.7m to £52.9m
• Final dividend of 1.63p per ordinary share

Operational highlights

• Visitors to the Group's websites increased by 54.0% to 91.0m
• Transactions on the Group's websites increased by 52.4% to 58.2m
• Improved revenue per transaction (RPT) and revenue per visitor (RPV) in each 
  vertical
• Online brand recognition increased to 73% in November 2007
• Continued diversification across the internet business as the Travel and Home
  Services verticals continue to expand rapidly

The Board is proposing a final dividend of 1.63p per ordinary share. The final
dividend will be paid on 30 April 2008 to ordinary shareholders on the register
on 25 March 2008.

Notes:

(1) Assuming a debt free acquisition of Moneysupermarket.com Financial Group
Limited by the Company on 1 January 2006, from which date intangible
amortisation commenced, and a share option charge which reflects the average
charge over the vesting period of currently unexercised options.

The Directors anticipate presenting financial information on a similar basis
until the final results for the year ended 31 December 2008. Thereafter the 
need to present a pro forma Income Statement will not be required because the
relevant comparator period will be consistent with the current period.

(2) Adjusted EBITDA is calculated by the Directors by making certain adjustments
relating to the historical compensation levels of the Directors and senior
managers. These adjustments reflect the Directors' and senior managers' profit
share, discretionary bonus, and employer's national insurance contributions from
these historical compensation levels. Following the listing of the Company on 31
July 2007, these elements of compensation no longer apply at these levels to
these individuals each of whom entered into a new service agreement with effect
from 31 July 2007. The charge for share based compensation relating to options
issued prior to the listing of the Company has also been added back.

Simon Nixon, CEO said

'I am delighted to be announcing a strong set of results for the Group in a year
when we have floated the business and grown revenues by more than 55%.
Importantly, our investment in the Moneysupermarket.com brand has continued, as
has investment in our consumer offering and marketing engine. I believe we have
a very strong platform from which to grow the business in the future.

We have made a strong start to the current financial year. The Money vertical
has enjoyed double digit growth year to date, with broadly flat performance in
loans and mortgages offset by very strong growth in credit cards and savings
products. The other verticals, Insurance, Travel and Home Services, have
maintained the momentum experienced in the second half of 2007. In line with our
business plan, we anticipate a step up in costs in the first half of 2008 
associated with our continued investment in the business and development of our 
German subsidiary. We remain very confident in our diverse business model and 
the benefit it brings to consumers and providers.

Given current trading and the ongoing investment programme, we are confident
that we can have another successful year.'

Analysts Presentation

There will be a presentation for investors and analysts at 1 Finsbury Avenue,
London, EC2M 2PP at 9.30am this morning.

Contact details:

Moneysupermarket.com Group PLC
Paul Doughty Chief Financial Officer - 020 7353 4200
Alexander Cowen-Wright Public Relations Manager - 01244 665700

Tulchan Communications
David Trenchard - 020 7353 4200
Celia Gordon Shute - 020 7353 4200

Chief Executive's Report

I am pleased to present my first Chief Executive's Report for what has been a
very successful year for the Group. We have continued to grow the business
substantially whilst investing significantly for the future. This has all taken
place in a year when we floated the Group on the London Stock Exchange in the
very challenging and volatile markets of July 2007. The Group entered the FTSE
250 in September 2007.

Group revenues grew by 55.9% in 2007 to £162.9m. Internet revenues increased by
63.7% to £152.2m and adjusted EBITDA by 57.2% to £52.9m. All areas of the
internet business performed well whilst the intermediary business was broadly
stable in 2007.

Despite the well documented turbulence in credit markets in 2007, the Money
vertical traded successfully throughout the year. Revenues grew by 48.7% and we
believe this demonstrates the value that our business delivers to both consumers
and providers. We believe providers reduced advertising spend on other media
whilst maintaining their commercial relationships with the Group because it
offers targeted and focused advertising spend and generates a greater return on
investment than many other forms of media.

In the Insurance vertical, revenues grew by 74.7% to £54.4m in 2007. We 
maintained a strong market position in a sector which continues to show rapid
growth through greater consumer awareness and increasing use of on-line
aggregators. We have the most complete insurance comparison engine in the UK
offering the consumer the widest choice of providers. We have a very strong
brand with 73% of online consumers recognising the Moneysupermarket.com brand.
This gives the Group a strong competitive advantage and a powerful base from
which to defend and grow its position as the UK's leading price comparison
website.

The Travel vertical increased its revenues by 100.9% to £15.0m. The
Travelsupermarket.com brand is recognised in its own right and is the clear
market leader in its field. We have made the product more comprehensive, adding
additional channels which enable the business to cater for more of our 
consumers' requirements. Inventory has been increased allowing the consumer to
compare more providers. This improves the consumer experience and engenders
trust in the Group. Ultimately we believe these factors will make
Travelsupermarket.com the preferred and most trusted travel website in the UK.

Home Services revenues have increased by 280.2% to £4.5m. The focus this year
has been on growing market share in a vertical where there were already
established competitor businesses. We have been successful in the application of
this strategy. We have leveraged our already substantial user base, the strength
of our brand and our sales and marketing expertise to take market share from the
incumbents. Home Services continues to show rapid growth, albeit from a small
base, but also benefits the business by widening the Group's offering to the
consumer. This gives the consumer even more reasons to return to our website.

We launched our business in Germany (www.icero.de) in October 2007, initially
offering Home and Motor insurance partnering with a third party who provided the
technology. We have had some success in 2007 but are working hard to improve the
consumer interface and conversion rates over the course of the first half of
2008. We will not commit significant investment to promoting the service until
we are satisfied with progress in this area.

I believe the Group has achieved a great deal in 2007 and its success is largely
down to the dedication of our employees. I would like to thank them for their
continuing efforts.

Strategic Context

As the UK's leading price comparison website, the Group is very well placed to
respond to a continuing structural shift in consumers' and advertisers'
behaviour. Increasing broadband penetration in the UK has dramatically improved
the online experience. It is 'always on' and gives much faster access than a
dial up connection. As a result, consumers are spending ever increasing amounts
of time online. The consumption of internet media now accounts for more than one
quarter of all media consumption in the UK. As consumers' online time increases
so their confidence and familiarity with transacting over the internet improves.
Advertisers are increasingly recognising this in their consumer acquisition
strategies and are allocating ever increasing amounts of their advertising
budgets from traditional offline media to the internet. We believe the Group
provides the largest and most effective price comparison marketplace in the UK,
matching relevant and ready to transact consumers with providers.

Our strategy, which aims to capitalise on this structural shift, is built upon
two primary objectives:

•To continue to innovate with a constant focus on improving our existing
 products and improving the consumer/provider experience; and
•To improve the volumes and mix of traffic to the Group's website by increasing
 brand awareness of Moneysupermarket.com.

Innovation and Product Development

It is imperative we maintain our leading edge in product development. The
internet is unique in that it offers consumers the ability to move between
different 'retailers' at the click of a mouse. It is not good enough to be the
best and most trusted in 70% of the things you do because ultimately the
remaining 30% of the business will suffer. Product is therefore key to our
success. This is encapsulated through two of our key operating values:

•To build services that we would feel proud to recommend to close family
 and friends; and
•To endeavour to offer our consumers the widest selection of products
 enabling them to compare and buy online in all of the major sectors of the
 market. Content is therefore paramount.

These values sit at the heart of all of the products and services we develop.

Product development introduces more relevant consumers to more relevant product
providers and improves both consumer satisfaction and provider conversion. By
constantly improving our service to both of these key stakeholders, the Group
will continue to prosper and maintain its position as the UK's leading price
comparison website.

In 2007 we introduced a number of key developments in this area. For example:

• We extended the question set within our motor insurance offering to enable 
  consumers to obtain a more tailored quote for their particular circumstances.
  The response has been good and we have seen an increase in conversion rates 
  recorded by providers. This has generated increased revenues per visitor in 
  the motor insurance channel since the new question set was introduced;

• In July 2007 we introduced MyMoneysupermarket. This enables consumers to enter 
  their details once within our safe and secure systems; these details can then 
  be used to prepopulate application forms which can save the consumer time and 
  effort at the time of renewal. It also, through the log in feature, enables us 
  to get a better understanding of our consumers and tailor our products and 
  services to their individual needs; and

• We have added more user and professional reviews and significantly grown the
  content in our forums features. We now have more than 24,000 registered users 
  and many times more viewers of our forums who interact with each other to
  discuss topics of interest and concern to them which increases consumers'
  affinity with the website.

We believe that these developments in particular contributed significantly to
increasing the revenue per visitor across our business during 2007.

Brand Awareness

Marketing and PR drive new consumers to our website. We began offline
initiatives a number of years ago with the supply of best buy tables to the
personal finance sections of the daily newspapers. This continues and today we
supply the best buy tables for seven newspapers including the Telegraph, Times
and Independent. More recently in 2006 we extended our offline initiatives into
TV and radio advertising which have stepped up considerably in 2007. The success
of this is reflected in two key areas:

• Our online brand recognition increased from 40% in July 2006 to 73% in
  November 2007 according to a YouGov survey commissioned for the Group; and
• Our gross margins increased from 61.1% to 66.7% as the Group earned a greater 
  proportion of its revenues from consumers who came directly to the website 
  rather than from search engine marketing or portal partners where there is a 
  direct cost of consumer acquisition.

We need to retain our position in the front of consumers' minds as a trusted
consumer champion and to become their de facto choice when considering their
financial, insurance, travel and home services requirements.

Current trading and outlook

We have made a strong start to the current financial year. The Money vertical
has enjoyed double digit growth year to date, with broadly flat performance in
loans and mortgages offset by very strong growth in credit cards and savings
products. The other verticals, Insurance, Travel and Home Services, have
maintained the momentum experienced in the second half of 2007. In line with our 
business plan, we anticipate a step up in costs in the first half of 2008 
associated with our continued investment in the business and development of our 
German subsidiary. We remain very confident in our diverse business model and 
the benefit it brings to consumers and providers.

Given current trading and the ongoing investment programme, we are confident
that we can have another successful year.

Business Review

The Group is presenting a pro forma Income Statement below for the years ended
31 December 2006 and 31 December 2007 to show what the financial results would
have been had the Company acquired Moneysupermarket.com Financial Group Limited
on 1 January 2006 (1). The Directors believe that this will allow users of the
financial information to gain a better understanding of the underlying 
performance of the business. This is consistent with the presentation in both
the interim statements for 2007 and in the prospectus issued in connection with
listing of the Group in July 2007. The pro forma Income Statement forms the
basis of the commentary contained in the Business Review presented below unless
otherwise stated.

Unaudited pro forma Income Statement
for the year ended 31 December 2007

                                                               2007        2006
                                                               £000        £000
Continuing operations
Revenue                                                     162,882     104,459
--------------------------------------------------------------------------------
Internet                                                    152,220      92,985
Intermediary                                                 10,662      11,474
--------------------------------------------------------------------------------

Cost of sales                                               (54,268)    (40,661)
                                                               ---        ---
Gross profit                                                108,614      63,798
Other operating income                                            -         193
Distribution expenses                                       (19,640)     (7,406)

--------------------------------------------------------------------------------
Administrative expenses - excluding directors' and senior
managers' profit share and discretionary bonuses, and
share based compensation                                    (62,837)    (49,141)
Administrative expenses - directors' and senior managers'
profit share and discretionary bonuses                       (4,967)    (17,572)
Administrative expenses - share based compensation           (4,433)     (4,192)
--------------------------------------------------------------------------------

Administrative expenses                                     (72,237)    (70,905)
                                                               ---        ---
Profit/(loss) from operating activities                      16,737     (14,320)



                                                               ===        ===

Adjusted EBITDA
Profit/(loss) from operating activities                      16,737     (14,320)

Directors' and senior managers' profit share and
discretionary bonuses                                         4,967      17,572
Share based compensation                                      4,433       4,192
Amortisation of intangibles                                  25,200      25,200
Depreciation                                                  1,612       1,039
                                                               ---         ---
Adjusted EBITDA                                              52,949      33,683
                                                               ===         ===
                                                                       
Pro forma earnings per ordinary share:
                                                               ===         ===
- basic                                                        7.5p        4.7p
- diluted                                                      7.3p        4.6p


Notes

Basis of Preparation

The pro forma results show the trading results of the Group for the years ended
31 December 2006 and 31 December 2007 adjusted for the following assumptions:

• The acquisition of Moneysupermarket.com Financial Group Limited by the Company
  occurred debt free on 1 January 2006.
• The charge included within the pro forma for share options is the average 
  expected charge over the vesting period of options still to be exercised 
  following the listing of the Company on 31 July 2007.

In the pro forma Income Statement, basic and diluted earnings per ordinary share
figures have been included which are based on an adjusted net profit figure 
assuming that the number of ordinary shares and options in issue at 31 December 
2007 had been in issue since 1 January 2006. The diluted earnings per ordinary 
share calculation for the year ended 31 December 2007 does however include a 
weighting for Long Term Incentive Plan awards made on 28 December 2007.

The Directors regard an adjusted EBITDA figure as being the most meaningful
profit measure for this period. The following adjustments have been made to the
pro forma Income Statement:

• The acquisition of Moneysupermarket.com Financial Group Limited by the Company 
  gave rise to £207.2m of intangibles. These are to be written off over a period 
  of 3-10 years with a charge of £25.2m per annum to be recorded in each of the 
  first three years. This has been shown within administrative expenses as a 
  charge of £25.2m in the 2006 and 2007 pro forma Income Statements.

• With effect from the listing of the Company on 31 July 2007, Directors and 
  senior management compensation was revised and the individuals entered into 
  new service agreements. Directors' and certain senior management's profit 
  share, discretionary bonus and employer's national insurance contributions 
  have been added back to reflect the fact that following listing on 31 July 
  2007 these elements of compensation no longer apply to these individuals.

• Share option charges relating to Directors, senior management and other 
  employees of the Group have been added back to calculate adjusted EBITDA. 
  Prior to the acquisition of Moneysupermarket.com Financial Group Limited by 
  the Company, Moneysupermarket.com Financial Group Limited issued share options 
  to employees on terms that will not be offered moving forwards. On listing, 
  the Company also issued 'free' shares to the value of £3,000 as a 'bonus' to 
  each employee as part of its Share Incentive Plan scheme. On listing, the 
  Company also entered into an agreement with Gerald Corbett under which Gerald
  Corbett purchased 117,647 ordinary shares in the Company and provided he 
  completes three years service as Chairman of the Company from listing and he 
  retains those ordinary shares he purchased, he will be entitled to subscribe 
  at nominal value for 235,294 ordinary shares in the Company. The Company does 
  not currently intend to make similar awards in the future. It does however 
  anticipate making conditional share awards under the terms of the Company's 
  Long Term Incentive Plan in the future to key staff on commercial terms. 
  Conditional awards were made under the Company's Long Term Incentive Plan on 
  28 December 2007. No charge is included in the pro forma results in either
  2006 or 2007.

The pro forma earnings per share figures assume a 30% tax rate.

Overview of financial performance

Revenues grew strongly by 55.9% to £162.9m (2006: £104.5m) and adjusted EBITDA 
by 57.2% to £52.9m (2006: £33.7m). The internet business generated £152.2m of 
revenues representing 93.5% of turnover in the year to 31 December 2007 compared 
to £93.0m in the corresponding period which represented 89.0% of turnover.

Group gross margins increased over the period from 61.1% to 66.7%, partly as a 
result of a more favourable mix, as the lower margin intermediary business 
contributed 6.5% of Group revenues in 2007 compared to 11.0% in 2006. We also 
saw direct to site revenues increase as a proportion of total revenues over the 
period. We believe that the improvement in direct to site revenues has been
driven by increased brand awareness supported by continued investment in brand 
building including TV advertising which commenced in March 2006, and a focus on 
Search Engine Optimisation (SEO) which has helped to maintain and improve the 
Group's rankings in the free listings in the major search engines for key search
terms.

The adjusted cost base before depreciation increased from £30.3m to £55.7m. The 
majority of the increase is attributable to an increase in distribution expenses 
which consist primarily of television advertising, marketing and PR expenses. 
These have grown significantly from £7.4m in 2006 to £19.6m in 2007. Television
advertising did not commence until March 2006 and the 2007 results therefore 
include a full year's activity compared to ten months in 2006. However 
throughout 2007 we increased the level of advertising activity. The success of 
this has been demonstrated by a significant improvement in online brand 
recognition from 40% in July 2006 to 73% in November 2007 as measured by a 
YouGov survey regularly commissioned by the Group.

Administration costs have also increased substantially. Headcount increased from 
523 to 647 over the period, primarily in IT and operations, as work continues on 
improving our consumer offering and the development of new products and 
services. Adjusted staff costs increased by £6.6m to £22.8m in 2007.

Other costs including irrecoverable VAT increased by £7.1m driven by a change in 
sales mix towards sales which were exempt from VAT together with an increase in 
outsourced call centre costs associated with the growth in the sale of insurance
leads. Included in the adjusted cost base is £1.0m of costs that relate to the 
launch of our German business, www.icero.de, in October 2007.

Adjusted EBITDA margins improved from 32.2% in 2006 to 32.5% in 2007.

The Group operates two different business segments in the UK (internet and 
intermediary). The internet business operates across four vertical markets. 
These are discussed below:

                                 31 December 2007              31 December 2006
                                £000           %               £000           %

Money                         78,030          48             52,468          50
Insurance                     54,402          33             31,144          30
Travel                        15,004           9              7,469           7
Home Services                  4,540           3              1,194           1
Other - UK                        87           0                710           1

Total Internet UK            152,063          93             92,985          89

Germany                          157           0                  -           -
                            
                                 ---         ---                ---         ---
           
Total internet               152,220          93             92,985          89

Intermediary                  10,662           7             11,474          11
                                
                                 ---         ---                ---         ---
                           
Total                        162,882         100            104,459         100
                                
                                 ===         ===               ===          ===


Internet Business

The UK internet business accounted for 93% of Group revenues. The Directors use 
key performance indicators (KPIs) to assess the performance of the internet
business against our strategy. These are reviewed on a regular basis. The 
principle KPIs for the internet business are as follows:

Visitors

The Group measures the number of its visitors to its websites as the number of 
unique visitors per day per channel, measured on a cumulative basis using cookie
-based tracking methodologies.

Number of Transactions

The Group measures transactions at the point in time that the consumer leaves 
its websites having clicked through to a third party website, or in some cases 
having completed an application form hosted on one of the Group's websites.

Revenue Per Transaction ('RPT')

The Group measures the click based revenue divided by the total number of 
transactions.

Revenue Per Visitor ('RPV')

The Group measures the total revenue (including click and other internet 
revenue) divided by the number of visitors defined above.

The relative performance of each of the internet verticals is discussed below:

Money

The Money vertical currently offers the consumer the ability to search for and 
compare finance products for business finance, credit cards, current accounts,
mortgages, loans, debt solutions and savings accounts. It also includes elements 
of the Group's lead business (PAA) and advisory business (MCAT) together with
advertising revenues that derive from money products.

The KPIs for the Money vertical are shown below:
                                         
                                          31 December     31 December     Change
                                                 2007            2006

Visitors ('000)                                27,676          23,152        20%
Transactions ('000)                            12,557          11,006        14%
Revenue (£'000) - click based revenue          60,779          37,714        61%
Revenue (£'000) - other                        17,251          14,754        17%
Revenue (£'000) - total                        78,030          52,468        49%
RPV                                             £2.82           £2.27
RPT                                             £4.84           £3.43


Revenues in the Money vertical in total have increased by 49% from £52.5m to 
£78.0m and transaction revenue by 61% from £37.7m to £60.8m. Growth has been 
driven by both an increase in visitors of 20% and a shift in sales mix away from
unsecured lending towards secured lending products. These generate higher 
revenues for the Group and this has significantly improved average RPT and RPV 
in the Money vertical which have increased by 41% and 24% respectively. The
Group saw little impact on the reported results from the volatility of the 
credit markets in 2007.

Other revenues grew 17% in the period broadly in line with visitor growth. This 
includes revenues from the sale of leads through PAA, commission based sales 
through MCAT for mortgages and loans, and advertising revenues.

Insurance

The Insurance vertical currently offers the ability for the consumer to search
and compare insurance quotations for breakdown, dental, home, life, medical,
mortgage payment protection, motor, payment protection, pet and travel 
insurance. It also includes elements of the Group's lead business (PAA) and 
advisory business (MCAT) together with advertising revenues that derive from 
insurance products.

The KPIs for the Insurance vertical are shown below: (3)

                                          31 December     31 December     Change
                                                 2007            2006

Visitors (000)                                 20,677          13,365        55%
Transactions (000)                             13,291           8,918        49%
Revenue (£000) - click based revenue           46,674          27,480        70%
Revenue (£000) - other                          7,728           3,664       111%
Revenue (£000) - total                         54,402          31,144        75%
RPV                                             £2.63           £2.33
RPT                                             £3.51           £3.08


Revenue in the Insurance vertical increased by 75% from £31.1m to £54.4m and 
transaction revenue grew by 70% from £27.5m to £46.7m. RPT increased 14% to 
£3.51 as consumer sales conversion improved on provider websites in respect of 
home and motor insurance driven by upgrades in the search functionality on the 
website. For example an enhanced question set was added to motor insurance in 
July 2007 which enabled consumers to obtain a more tailored quote for their
particular circumstances, further increasing conversion on the providers' 
websites. This improved RPT in the motor insurance channel.

Other revenues increased by 111% with the launch of the leads bidding system 
which enabled motor and home leads to be retailed on the Group's online bidding
platform.

Note:

(3) As noted in the prospectus issued in connection with the listing of the 
Company, the Group's visitor numbers during the period between June 2006 and May 
2007 were understated due to certain visitors not being assigned a unique global 
user ID. The issue was resolved in May 2007 and has not impacted visitor numbers
in the Insurance vertical after May 2007. The Group has not been able to 
quantify the exact extent of the understatement.

Travel

The Travel vertical currently offers the consumer the ability to search for and 
compare airport parking, car hire, flights, hotels and package holidays.

The KPIs for the Travel vertical are shown below:

                                          31 December     31 December     Change
                                                 2007            2006

Visitors (000)                                 36,964          19,749        87%
Transactions (000)                             30,636          17,205        78%
Revenue (£000) - click based revenue           13,080           6,796        92%
Revenue (£000) - other                          1,924             673       186%
Revenue (£000) - total                         15,004           7,469       101%
RPV                                             £0.41           £0.38
RPT                                             £0.43           £0.40

Revenues in the Travel vertical have grown by 101% from £7.5m to £15.0m and 
transaction revenue by 92% from £6.8m to £13.1m. Visitors have grown by 87% over 
the period and each of RPT and RPV has increased by 8%. Car hire and hotels now 
account for a greater proportion of revenues in 2007 than 2006. There has also 
been some benefit with the widening of the product portfolio late in 2006 which
saw the launch of airport parking and a Top Deals promotion where consumers are 
periodically sent details of some of the best deals found on the website. The 
existing product set has been further developed in 2007 to include flight 
sectors with B&B's being added to the hotels offering. The increased product set 
and content has increased page impressions and has enabled the Group to generate
greater advertising revenues which are shown within other revenues.

Home Services

The Home Services vertical was launched in 2006. It offers consumers the 
opportunity to search for and compare products for broadband, mobile telephone, 
shopping and utilities.

The KPIs for the Home Services vertical are shown below: (4)

                                          31 December     31 December     Change
                                                 2007            2006

Visitors (000)                                  5,721           2,819       103%
Transactions (000)                              1,699           1,107        53%
Revenue (£000) - click based revenue            4,345           1,194       264%
Revenue (£000) - other                            195                        N/A
Revenue (£000) - total                          4,540           1,194       280%
RPV                                             £0.79           £0.42
RPT                                             £2.56           £1.08

Revenues in the Home Services vertical have grown by 280% from £1.2m to £4.5m.
Revenues in 2006 were predominantly generated from utilities which was a white 
labelled offering with content provided by a third party and the Group was
remunerated on a cost per click basis. Late in 2006 the Group developed its own 
utilities offering, introduced a number of other channels and the majority of 
commercial deals migrated towards cost per action based arrangements. This
increased RPV in 2007 over 2006.

Note:

(4) The KPIs in respect of 2006 do not include the new car channel which was 
discontinued in the second half of 2006.

Germany

The German business launched in October 2007. It provides a range of products 
including home and motor insurance. Revenues were £0.2m and the Group incurred 
£1m in associated costs. The Group will focus in the coming months on how it can 
improve its product offering in Germany.

Intermediary Business

Intermediary revenues declined from £11.5m to £10.7m over the period. In June 
2006 the Group disposed of its 50% shareholding in HL Partnership Limited, a 
network business. This contributed £0.8m of revenues in 2006 and nil profit.
Trading in the underlying business remained stable in 2007.

Acquisition of Moneysupermarket.com Financial Group Limited and Listing

As noted above, on 22 June 2007 the Company, at that time controlled by Simon 
Nixon, purchased the entire issued share capital of Moneysupermarket.com 
Financial Group Limited. This was funded partially by a cash payment of £162m to 
one of the founder shareholders, Duncan Cameron, and a share for share exchange. 
This transaction has had a number of impacts on the accounts of the Company in 
the current period and will also impact on subsequent periods.

Goodwill and Intangibles

The acquisition of Moneysupermarket.com Financial Group Limited gave rise to 
£125.0m of goodwill and the recognition of £207.2m of intangible assets. 
Individual intangible assets will be amortised over their useful lives (which 
are in the range of 3-10 years) with a charge of £25.2m per annum in the first 3 
years in the full year accounts. A charge of £13.3m has been included in the 
accounts covering the period from 22 June 2007 to 31 December 2007. A full 
year's charge of £25.2m has been included in the pro forma Income Statement for 
the years ended 31 December 2006 and 31 December 2007.

Costs of Transaction

The Company incurred total transaction costs relating to the acquisition of 
Moneysupermarket.com Financial Group Limited, the raising and draw down of the 
required financing and the flotation on the London Stock Exchange of £15.8m.

The Company incurred costs and stamp duty of £2.8m relating to the acquisition 
of Duncan Cameron's shares in Moneysupermarket.com Financial Group Limited. 
These costs have been capitalised and recorded as a cost of investment on the 
Company's balance sheet.

The acquisition of Duncan Cameron's shares in Moneysupermarket.com Financial 
Group Limited was funded by an all senior debt facility of £150m. The Company 
incurred costs of £3.7m directly associated with the raising and draw down of 
the loan facility. The debt was repaid from the proceeds of the listing on 31 
July 2007. The costs have therefore been expensed in the current period and 
shown as a finance charge in the statutory accounts. The pro forma Income 
Statement has been prepared on a debt free basis and consequently there have
been no costs recognised in respect of the debt raised in them.

The remaining balance of £9.3m relates to costs incurred in relation to the 
listing of the Company. These costs have been written off against the share 
premium account.

Treasury and Funding

The Company raised £180m from the proceeds of the listing on 31 July 2007.
Approximately £178m of the proceeds raised were used to fund the costs of the 
acquisition by the Company of Duncan Cameron's shares in Moneysupermarket.com
Financial Group Limited including all related costs and expenses of the 
acquisition, the raising and draw down of debt finance and the costs of the 
listing. The Company acquired £14m of cash at the acquisition and has continued 
to generate cash from operations. It has no debt. The Company had cash balances 
of £54.0m at 31 December 2007. The Company has invested its cash over the period 
predominantly in instant access cash deposits and short term deposits (less than 
six months). As such the interest earned has closely followed movements in the 
Bank of England Base Rate.

Dividend

The Directors currently intend to adopt a progressive dividend policy, initially 
targeting a dividend payout of approximately one third of net income each year, 
payable by way of an interim and final dividend each year.

The Board is declaring a final dividend, subject to shareholder approval, 
consistent with the policy above in respect of the year ended 31 December 2007 
of two thirds of the annual targeted payout ratio representing one third of
adjusted net income. This equates to £8.1m and represents 1.63p per ordinary 
share. The ex-dividend date is 19 March 2008, with a record date of 25 March 
2008 and a payment date of 30 April 2008.

Tax

The Group tax credit of £1.8m in the statutory income statement represents an 
effective tax rate of -25.2%. This is significantly below the prevailing rate 
for the period of 30%. The current year rate has been impacted by a number of 
items. The deferred tax liability relating to the intangible assets has been 
revalued to reflect the change in corporation tax rates from 30% to 28%. This
has generated a credit in the current period to tax of £3.7m. The Group has also 
recognised a deferred tax credit of £1.7m relating to share based payments 
arising from shares and options issued prior to the listing. In future, the 
Group expects the underlying effective rate of tax to revert to close to the 
standard UK corporation tax rate of 28%.

Earnings per Ordinary Share

Basic statutory earnings per ordinary share for the period to 31 December 2007 
were 3.0p. Details can be found in Note 1. Pro forma basic earnings per ordinary 
share increased from 4.7p to 7.5p per share. The pro forma earnings per ordinary 
share is based on adjusted EBITDA after deducting depreciation and adding back
estimated interest income for each period to calculate pro forma profit before 
tax. A tax rate of 30% has been applied to calculate pro forma profit after tax.

Consolidated income statement
for the period ended 31 December 2007

                                                                        December
                                                                            2007
                                                                           £'000

Continuing operations
Revenue                                                                  88,314
Cost of sales                                                           (29,057)
                                                        
Gross profit                                                             59,257

Distribution expenses                                                   (10,332)
Administrative expenses                                                 (37,817)
                                                              
Results from operating activities                                        11,108
                                                                
Financial income                                                          1,336
Financial expense                                                        (4,894)
                                                                
Net finance costs                                                        (3,558)
                                                                
Profit before income tax                                                  7,550

Income tax credit                                                         1,874
                                                               
Profit for the period                                                     9,424
                                                               

Attributable to:
Equity holders of the Company                                             9,472
Minority interest                                                           (48)
                                                               
Profit for the period                                                     9,424
                                                                
Earnings per share
Basic earnings per ordinary share (pence)                                   3.0
                                                                
Diluted earnings per ordinary share (pence)                                 2.9
                                                                


Consolidated balance sheet
at 31 December 2007

                                                                        December 
                                                                            2007
                                                                           £'000
Assets
Non-current assets
Property, plant and equipment                                            12,585
Intangible assets                                                       318,853
Deferred tax asset                                                        3,124
                                                                   
Total non-current assets                                                334,562
                                                                   
Trade and other receivables                                              19,906
Prepayments                                                               1,194
Cash and cash equivalents                                                54,015
                                                               
Total current assets                                                     75,115
                                                                   
Total assets                                                            409,677
                                                                   
Liabilities
Non-current liabilities
Deferred tax liability                                                   54,243
                                                                   
Current liabilities
Trade and other payables                                                 25,681
Current tax liabilities                                                   2,758

Total current liabilities                                                28,439
                                                                   
Total liabilities                                                        82,682
                                                                   
Equity
Share capital                                                               118
Share premium                                                           170,565
Retained earnings                                                        13,285
Other reserves                                                          143,027
                                                                   
Total equity attributable to equity holders of the                      326,995
Company
Minority interest                                                             -
                                                                            
                                                                
Total equity                                                            326,995

Total equity and liabilities                                            409,677
                                                                   

Consolidated statement of changes in equity
for the period ended 31 December 2007

                                                               Foreign 
             Issued                               Reserve     currency                    
              share   Share     Other  Retained   for own  translation
            capital premium  reserves  earnings    shares      reserve     Total           
              £'000   £'000     £'000     £'000     £'000        £'000     £'000     
                                                                                                              
Foreign 
currency
translation      -       -         -         -          -            9         9 
             -------------------------------------------------------------------
Total income 
and expense     
for the period   
recognised 
directly         
in equity        -       -         -         -          -            9         9
                                 
Deferred tax 
recognised on    
share-based
payments                                    262         -                    262   

Profit for
the period       -       -         -      9,424         -            -     9,424          
             -------------------------------------------------------------------
Total income      
and expense  
for the period   -       -         -      9,686         -            9     9,695
            
Arising on
acquisition
of subsidiary    -       -    143,018                   -            -   143,018
            
Issue of share 
capital         118 179,927        -          -         -            -   180,045
Conversion of        
shares to                
deferred shares  -       -         -          -         -            -         -           

Transaction
costs            -   (9,362)       -          -         -            -   (9,362)

Share-           
based payment    -       -         -      3,599         -            -     3,599
                          
            --------------------------------------------------------------------
At 31 December
2007           118   170,565   143,018   13,285         -            9   326,995
            ====================================================================

Other reserves

The other reserves balance represents the merger and revaluation reserves 
generated upon the acquisition of Moneysupermarket.com Financial Group Limited 
by Moneysupermarket.com Group PLC.

Foreign currency translation reserve

The translation reserve comprises all foreign currency differences arising from 
the translation of the financial statements of foreign operations.

Reserve for own shares

The reserve for the Company's own ordinary shares comprises the cost of the 
Company ordinary shares held by the Group. At 31 December 2007, the Group held 
948,184 shares at a cost of 0.02 pence per share through a trust for the benefit
of the Group's employees.

Consolidated Cash Flow Statement
for the period ended 31 December 2007

                                                                        December
                                                                            2007
                                                                            £000

Operating activities
Profit for the period                                                     9,424
Adjustments to reconcile Group operating profit to net cash flows:
Depreciation                                                                908
Amortisation of intangible assets                                        13,325
Net finance costs                                                         3,558
Equity-settled share-based payment transactions                           3,599
Income tax credit                                                        (1,874)
Change in trade and other receivables                                     2,541

Change in trade and other payables                                       (1,730)
Income tax paid                                                          (6,254)
                                                                             
Net cash flow from operating activities                                  23,497
                                                                             
Investing activities
Interest received                                                         1,336
Acquisition of subsidiary                                              (164,560)
Cash acquired with subsidiary                                            14,295
Acquisition of property, plant and equipment                             (6,260)
                                                                             
Net cash flow from investing activities                                (155,189)
                                                                             

Financing activities
Proceeds from share issue                                               179,951

Costs from issue of shares                                               (9,362)
Proceeds from borrowings                                                150,000
Loan from a related party                                                20,000
Repayment of borrowings                                                (150,000)
Interest paid                                                            (4,882)
                                                                                
Net cash flow from financing activities                                 185,707
                                                                             
Net increase in cash and cash equivalents                                54,015
Cash and cash equivalents at start of period                                  -
                                                                             
Cash and cash equivalents at end of period                               54,015
                                                                             

Notes:

1 Earnings per share

Basic earnings per share

Basic earnings per share amounts are calculated by dividing profit for the year 
attributable to ordinary equity holders of the parent, by the weighted average 
number of ordinary shares outstanding during the period.

Diluted earnings per share

Diluted earnings per share amounts are calculated by dividing profit
attributable to ordinary equity holders of the parent, by the weighted average 
number of ordinary shares outstanding during the period plus the weighted 
average number of ordinary shares that would be issued on the conversion of all 
dilutive potential ordinary shares into ordinary shares.

The following reflects the share data used in the basic and diluted earnings per 
share computations:
                                 
                                                      
                                 Earnings       Weighted average       Per share  
                                                number of shares          amount
                                    £'000               millions           pence

Basic earnings per share            9,424                  313.6            3.0
Dilutive effect of share based
instruments                             -                   12.1           (0.1)
                        
Diluted earnings per share          9,424                  325.8            2.9      


2 Dividends

No dividends have been declared nor paid during the period.

                                                                          £'000

Proposed for approval at Annual General Meeting (not
recognised as a liability as at 31 December):
Equity dividends on ordinary shares:
                                                                             
Final dividend for 2007: 1.63 pence per share                             8,098
                                                                                


Statutory Information

The financial information set out above does not constitute the Company's 
statutory accounts for the period ended 31 December 2007 but is derived from 
those accounts. The accounts for the period ended 31 December 2007 will be 
delivered to the Registrar of Companies following the Annual General Meeting. 
The Company's auditors, KPMG Audit Plc, have reported on the accounts for the
period ended 31 December 2007 under section 235(1) of the Companies Act 1985 
('Act'). These reports were not qualified within the meaning of section 235(2) 
of the Act and did not contain statements made under section 237(2) and section 
237(3) of the Act. The annual report and accounts for the period ended 31 
December 2007 will be posted to shareholders in March 2007. The results for the 
period ended 31 December 2007 were approved by the board of Directors on 25
February and are audited. The Annual General Meeting will take place on 22 April 
2008. The final dividend will be payable on 30 April 2008 to shareholders on the 
register at the close of business on 25 March 2008. Interim and preliminary 
announcements notified to the London Stock Exchange are available on the 
internet at www.moneysupermarket.com.

Cautionary note regarding forward looking statements

This announcement includes statements that are forward looking in nature. 
Forward looking statements involve known and unknown risks, assumptions, 
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future 
results, performance or achievements expressed or implied by such forward 
looking statements. Except as required by the Listing Rules and applicable law, 
the Company undertakes no obligation to update or change any forward looking 
statements to reflect events occurring after the date such statements are
published.






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