Moneysupermarket earnings accelerate in the first quarter

Price comparison site Moneysupermarket.com enjoyed strong revenue and earnings growth in the first quarter of the year.

The group, which acquired the MoneySavingExpert site run by Martin Lewis last year, saw growth across its insurance, home services and travel businesses which more than offset lower demand in the 'Money' arm, with group revenues ahead 13%.

The company has been reaping the benefits of its "You're so Moneysupermarket" advertising campaign, with group earnings before interest, tax, depreciation and amortisation (EBITDA) up 31% on the same period last year, up from the 26% growth the company delivered in calendar 2012.

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This division suffered an 11% drop in sales compared to the first quarter of 2012 despite website visitor volumes being 7% higher.

The firm put this down principally to a 45% hit to non-credit products such as savings, current accounts and advertising revenues, due to the continued impact of the Government's 'Funding for Lending' scheme, "which has reduced competition for retail deposits and has markedly reduced savings revenues year on year."

Nevertheless, with visitors to the MoneySupermarket.com 8% ahead of the same period last year, insurance revenues jumped 17%, travel by 23% and home services such as utility switching up 80%.

Peter Plumb, Chief Executive, said it was a "solid start" to the year.

"The benefits of our increasingly diversified business are evident. We generated strong growth in our insurance, home services and travel businesses which more than offset lower demand in our money business."

He added: "MoneySavingExpert.com continues to prosper with the launch of the innovative Cheap Energy Club which has proved a hit with consumers."

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