Moneysupermarket profit drops as demand for travel insurance and credit products falls

Moneysupermarket, the financial services price-comparison platform, suffered a fall in profit and revenue last year as lockdown restrictions caused a drop in demand for insurance and credit products.

Moneysupermarket, which also owns the advice website Moneysavingexpert, said profit after tax fell 27 per cent from £94.9m in 2019 to £69.3m last year.

Group revenue was down 11 per cent to £344.9m and adjusted earnings per share dropped 28 per cent to 13.1p.

The company had cash of £23.6m, down two per cent, and announced a dividend per share of 11.71p.

Moneysupermarket recorded 11.5m active customers last year, a lower figure than usual due to the significant reduction in the travel insurance market.

Revenue in its money division – which provides comparisons on borrowing and banking products – suffered a sharp 27 per cent decline due to a drop in demand for credit products.

The initial drop in demand later reversed, but customers faced “significant supply issues” as providers tightened their lending criteria and there were fewer attractive results for consumers, resulting in reduced conversion and gross margin rate for Moneysupermarket.

The firm’s home services revenue was stable year on year, following growth of 39 per cent in 2019.

Peter Duffy, chief executive of Moneysupermarket Group, said: “We have again helped millions of UK households save on their bills, while providing indispensable financial advice throughout the Covid-19 pandemic.

“The business is resilient, and our dividend reflects our confidence for the future.

“Our job now is to encourage consumers to engage with us more and save on more of their bills. We will use our data better so consumers find our sites easier to use and are reminded when there are savings available to them.”