MoneySupermarket.com to meet expectations

published 14 November 2012

MoneySupermarket.com traded well in its third quarter and reports that "expectations for the year remain unchanged".

Trading in the fourth quarter has continued to be good: "Group revenues including MoneySavingExpert are approximately 20% ahead of the same period last year. Revenues excluding MoneySavingExpert are approximately 15% ahead of the same period last year."

Third quarter results, including that from MoneySavingExpert.com which it acquired on September 21st , were in line. "Group revenues and EBITDA [earnings before interest, tax, depreciation and amortisation] for the third quarter were, respectively, 11% and 12% ahead of the same period last year. Excluding the contribution from MoneySavingExpert.com internet revenues and EBITDA for the third quarter were each 11% ahead of the same period last year.

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VerticalsLooking at it by verticals:

Money - Revenues in the Money vertical were 2% ahead of the third quarter 2011 on visitor volumes that were 9% higher.

Insurance - Insurance revenues were 14% ahead and visitor volumes 17% ahead, of the same period last year.

Travel - Revenues in Travel were 2% ahead of the third quarter 2011 on visitor volumes that increased by 17%.

Home Services - Home Services revenues were 35% ahead of the third quarter 2011 with visitor numbers up by 21%.

Cash conversion also continues to be strong. At October 31st the group had net debt of £2.5m, reflecting the payment since the half year of the interim dividend of £9.3m together with the acquisition of MoneySavingExpert.com (£35m), corporation tax payments on account of £6.6m and capital expenditure of £4.3m

In addition, the company hasn't seen any "meaningful impact' from Google Advisor's launch of money products during the second quarter of 2012 and the launch of its car insurance product in September.

Consensus estimates for the full year, ending December 31st 2012 are for pre-tax profits of £46.69m on revenues of £202.08m, with earnings per share of 7.91p. This puts it on a forward price earnings ratio of 19.3.