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Consumers shopping for insurance deals help Moneysupermarket to record revenue

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Moneysupermarket's weak performance in home services and travel failed to offset small growth across its insurance and cashback arms.
Moneysupermarket's weak performance in home services and travel failed to offset small growth across its insurance and cashback arms.

A booming market for customers looking for deals on car and home insurance helped Moneysupermarket notch record revenue in 2023.

The price comparison website posted revenue of £432.1m in the 2023 financial year, up 11 per cent on the year before. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 14 per cent from £115.5m to £131.9m.

The company said the double-digit jump in revenue and EBITDA was a result of “exceptional trading” in its insurance division as customers sought out better deals amid rising premiums. Insurance revenue grew 28 per cent.

According to the ABI, the average price paid for motor insurance rose by 25 per cent in 2023, although other figures put the jump at 67.2 per cent in the year to November with London leading the way.

“The combination of high levels of premium price inflation and the cost-of-living squeeze resulted in high levels of search traffic with consumers seeking a better deal,” the company said.

Moneysupermarket’s strong performance came despite seeing “no material revenue” from energy switching, something which it does not expect to change over the coming months.

Alongside softer switching in the broadband market, home services revenue was down two per cent on the year.

The firm upped its full-year divided by three per cent to 12.1 pence per share.

“We helped customers save a record £2.7bn in 2023. The more we can help households save, the more the Group grows. We’re proud that in tough times for consumers, Moneysupermarket, Moneysavingexpert and Quidco have been able to make a real difference for so many,” Peter Duffy, chief executive said.

Analysts at Peel Hunt said it was a “steady end to the year” for Moneysupermarket, warning that the environment may get more difficult in 2024.

“Trading conditions will likely be harder as we go into the New Year. We still do not expect Energy switching to make a comeback, and comparables for insurance are set to become tougher, especially for 2H,” they said.