Moneysupermarket interim profit drops due to Covid-19
Comparison website Moneysupermarket.com reported a drop in interim profit and revenue on Tuesday as its core markets took a significant hit from the Covid-19 pandemic.
In the six months to the end of June, pre-tax profit fell to £51.4m from £60.4m in the first half of last year, on revenue of £183.2m, down 8%. Adjusted earnings before interest, tax, depreciation and amortisation were down 14% to £62.8m, basic earnings per share declined 19% to 7.6p and the interim dividend was held at 3.1p.
The company said revenue grew 2% in the first quarter but "exceptional market conditions caused by Covid-19 led" to the 8% drop in the first half, with a mixed outcome across its segments.
The performance of the insurance business was affected in April and May, but improved in June, while the money division was "heavily impacted" by a significant tightening in lending criteria throughout the second quarter. The home services segment saw strong growth in the half, it said.
The group had net cash of £7.5m versus net debt of £12.6m in 2019.
Chief executive officer Mark Lewis said: "Covid-19 and the lockdown measures have significantly impacted our core markets, but our brands MoneySavingExpert and MoneySuperMarket have risen to the challenge providing useful advice and savings tips to millions.
"Our business model has proved resilient, generating good cashflow throughout the crisis and giving us confidence for the future."