Moneysupermarket on track as insurance switching boosts third quarter

Price comparison website Moneysupermarket.com saw growth accelerate in the third quarter due to high levels of switching in insurance, offsetting the impact of higher interest rates on borrowing activities.

The company said that it remains confident of hitting full-year expectations, with the consensus forecast for adjusted EBITDA at £129.5m for 2023 financial year, up from £115.5m in 2022.

Revenues for the three months to 30 September totalled £115.6m, up 14% year-on-year, accelerating from the 11% growth in the first half.

Revenues in the insurance division, which accounts for over half of total sales, jumped 38% in the third quarter to £62.3m, up from 23% in the first half, as more customers switched car and home deals and premiums continued to rise. Moneysupermarket also said it saw rebounding volumes post the FCA General Insurance Pricing regulations introduced last year.

In Money, revenues fell 10% to £25.2m, after a 12% decline in the first half, as the company lapped a period of strong savings and current account deals last year. Meanwhile, high borrowing costs were still impacting the volumes of loan and funding activities.

"While headwinds in some of our markets persist, we're making progress on our strategy - expanding our offering while attracting and retaining customers more efficiently," said chief executive Peter Duffy.

Elsewhere, Home Services revenues fell 1% to £10.3m, Travel revenues rose 31% to £6.1m, while Cashback sales fell 3% to £13.9m.