Moneysupermarket.com Group PLC (LON:MONY) has said its motor and home insurance segments have “recovered to year-on-year growth” following a slowdown during the pandemic, however, the company added that travel insurance had still yet to see a significant uptick despite the recent relaxation of some restrictions.
In its results for the six months ended June 30, the comparison website reported adjusted earnings (EBITDA) of £62.8mln, down 14% year-on-year, while revenues fell 8% to £183.2mln.
READ: Moneysupermarket.com says financial switching is slow, home services strong
The company said its revenues were affected by the “exceptional market conditions caused by [coronavirus]”, with its insurance vertical affected in April and May while its money segment was “heavily impacted” by tightening lending criteria in its second quarter. One silver lining was home services, which the group said had seen “strong growth” in the half.
Despite the difficulties, Moneysupermarket maintained its interim dividend at 3.1p, which it said reflected “strong cashflow characteristics and confidence in the business model”.
Looking ahead, the company said the motor and home insurance recovery “may moderate as pent-up demand runs its course”, while life insurance continued to be below 2019 levels and money performance “remains highly suppressed” by the restrictive lending criteria and “virtually no promotional banking products”.
“We are not expecting provider credit appetite to improve until there is greater visibility of underlying macroeconomic trends”, the firm said, however, it said home services are continuing to trade well and it remained committed to a £5mln marketing investment.
The group also said it is “likely to face greater earnings pressure” in its second half given a good performance in the first quarter and the phasing of costs through the year.
"I'm pleased the group has been able to help our users save over £1bn already this year when so many households are facing unprecedented financial strain. [Coronavirus] 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”, said chief executive Mark Lewis.
"Our business model has proved resilient, generating good cashflow throughout the crisis and giving us confidence for the future", he added.
Shares in Moneysupermarket were up 1.7% at 309p in early deals on Tuesday.