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22 Oct 2020 | 08:12

Moneysupermarket Q3 revenues hit by Covid-19 crisis

(Sharecast News) - Price comparison website posted a decline in third-quarter revenue on Thursday as the Covid-19 pandemic affected several of its channels. In the three months to 30 September, revenue fell 16% to £85.1m, with revenue in the nine months to the end of September down 11% to £268.4m.

In the money business, revenue was down 40% in the third quarter to £12.5m, while the insurance segment saw an 8% decline to £45.7m. Home services revenue was 13% lower in Q3 at £15.5m, with other revenue down 9% at £11.5m.

Moneysupermarket said the performance of the insurance business was consistent through the quarter and slightly ahead of June, with the motor segment continuing its "strong" performance, although home and life declined year-on-year and travel insurance revenue remained "negligible".

Trading dynamics in Money were similar to the second quarter, with tightened lending criteria and low product availability in banking leading to a weak performance.

Home services grew in July, the company said, mainly due to a strong energy performance on MSE. However, revenue growth began to slow as the quarter progressed.

"The energy price cap fell as expected, while wholesale prices rose. As a result, the level of savings available to customers fell sharply, and energy market switching reduced substantially," it said.

Chief executive officer Peter Duffy said: "Our markets continue to be impacted by Covid-19, which is affecting our current performance. However, the group benefits from strong brands and high levels of cash conversion, so we are well positioned to weather this period of economic uncertainty and deliver future growth."

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