Moneysupermarket.com - Interim Management Statement
Moneysupermarket.com Group PLC
9 November 2011
This Interim Management Statement from Moneysupermarket.com Group PLC ("Moneysupermarket.com" or the "Group"), the UK's leading price comparison site, relates to the period from 1 July 2011 to 8 November 2011; the financial and operational data below is in respect of the Group's third quarter (1 July 2011 to 30 September 2011) unless otherwise stated.
The Group's financial performance in the third quarter was in line with the Board's expectations. Internet revenues and EBITDA for the third quarter were respectively 14% and 25% ahead of the same period last year. Visitors to the Moneysupermarket.com website were 3% ahead of the same period last year with visitors increasing across the Money, Insurance and Home Services verticals while Travel reduced marginally.
Revenues in the Money vertical were 8% ahead of Q3 2010 on visitor volumes that were 12% higher. Within this, trading was strongest earlier in the quarter, with September's year-on-year performance impacted by a strong September 2010.
Revenues from credit products (credit cards, loans, mortgages and debt solutions) were 8% ahead of the same period last year. Weakness in credit card revenues from lower visitor volumes were more than offset by strong growth in loans, particularly unsecured loans, where improved conversion and product availability significantly helped raise revenue per visitor.
Revenues from non-credit products, which include savings, current accounts and advertising revenues, improved by 8% driven by growth in savings and current accounts.
Insurance revenues were 15% ahead, and visitor volumes 3% ahead, of the same period last year.
The Group saw growth across all of its major Insurance lines including motor, home, travel and life insurance. Motor insurance in particular has continued to perform strongly.
Revenues in Travel were 11% down on Q3 2010 on visitor volumes that fell by 4%. Trading continues to be challenging across the travel business with consumers managing their discretionary spending tightly.
Home Services revenues were 107% ahead of Q3 2010 and visitor volumes increased by 4%. Utility switching volumes, which account for the greatest part of Home Services revenues, were stronger than the same period last year reflecting continued cost increases in the domestic energy market. Visitor growth was seen in both the utilities channel and shopping and vouchers channel.
Cash conversion continues to be strong. At 31 October 2011 the Group had net cash of £18.7m, reflecting the payment since the half year of the interim dividend of £7.7m together with the special dividend of £20m; corporation tax payments on account of £6.9m; and £1.0m relating to the acquisition of 51% of Local Daily Deals Limited.
Acquisition of Local Daily Deals Limited
On 31 August the Group completed the acquisition of 51% of Local Daily Deals Limited ("LDD") for an initial consideration of £1m, rising to a total consideration of up to £11m payable over 3 years depending on the achievement of certain financial targets. The Group has also supplied a working capital facility of £0.5m repayable on demand. Related expenses of approximately £0.1m will be expensed in the year.
LDD owns and operates a website and technology platform that features discounted retail offers from local and national companies. The website has been integrated into the Moneysupermarket.com website and will allow the Group to promote these services to its large customer database. The Group expects to be able to partner with national brands to offer customers exclusive deals not available through similar websites.
All consideration payments have been or will be paid in cash from existing resources.
Trading in the first weeks of the fourth quarter has been good with Group revenues 14% ahead of the same period last year.
Money revenues for the fourth quarter to date are in line with last year, reflecting the challenging comparator period.
Insurance revenues so far in Q4 are ahead of the Q3 run rate and approximately 24% ahead of the same period last year, with Motor insurance the strongest performing channel.
Home services revenues remain strong and are approximately 39% ahead of the same period last year, driven by utility switching revenues.
Travel continues to remain challenging with revenues approximately 17% lower than the same period last year.
Overall the Board's expectations for the year remain unchanged.
Peter Plumb, Chief Executive of Moneysupermarket.com, said:
"Moneysupermarket.com continues to make good progress. Revenues in the third quarter were 14% ahead of the same period last year - which itself was a tough act to follow. We saw solid growth across our Money, Insurance and Home Services businesses as consumers continue to seek to make the most of their money in what is still a very challenging environment.
"The recent acquisition of Local Daily Deals will further widen our offering, helping customers to save more money through local and national deals with retailers.
"We're pleased with the performance in the year to date which is in line with the Board's expectations."
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For further information, please contact:
Moneysupermarket.com Group PLC 020-7379-5151
Paul Doughty, Chief Financial Officer
Maitland Communications 020-7379-5151
· This interim management statement may include 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 Group 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 Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.
· The information in this release is based on management information.