Robust Quarterly Revenue for Moneysupermarket.com Group Plc (MONY)

Moneysupermarket.com is the part of Moneysupermarket Group Plc (MONY) and is a leading provider of a price comparison website. The company provides online tools absolutely free of cost to help people managing, saving and growing their money. The company provided tools, helps its customers to make comparison and switch Money, Insurance and Home Services products. Moneysupermarket Group PLC is listed on the FTSE 250 index.

Moneysupermarket.com released their first-quarter results on 18th April 2019, Thursday with higher revenue for the quarter. As per the statement published by the company, all the business divisions of the company were on par with the expected performance. The Home Services segment of the company has shown strong quarterly performance, but it is expected to be slower for the rest of the financial year.

Share Price Performance

Daily Chart as at April-18-19, before the market close (Source: Thomson Reuters)

On 18th April 2019, at the time of writing (before the market close, GMT 2:44 PM), Moneysupermarket Group Plc shares were trading at GBX 368.00, up by 5.63 per cent against its previous day closing price. Stock’s 52 weeks High and Low is GBX 372.10.00/GBX 258.00. The outstanding market capitalisation was around £1.87 billion with a dividend yield of 3.17 per cent.

In the released quarterly results, the company reported revenue of £104.9 million ($136.8 million) for the first quarter of the financial year 2019. There was an increase of 19 per cent as compared to last year performance for the same period. As per the company’s statement, the Home Services business segment performed exceptionally well against the moderate expected growth. The company is expecting its Home Services to remain moderate in the remaining financial year. Due to its exceptional quarterly results, the company announced a special dividend for its investors of £40 million ($52.2million).

The company operates in a competitive market with multiple competitors. Gocompare.com, Comparethemarket.com and Just Eat Plc are a few of the company’s competitors. Due to the competitive nature of the business, the company have to spend a lot on their marketing budget to interest more customers to avail their services. The company is also known for its innovative marketing techniques. It released an advertisement featuring He-Man and Skeleton, the 80’s cartoon characters. Last year, the company announced that it would be reinventing to optimise the websites with better browsing experience and to increase its customer base.

With its planning to reinvent, the company warned its shareholders about the low earning. The company with its reinventing programme will provide more personalised services and will enter into new product market for instance mortgages.

Earlier in February, the utility industry was hit by the price cap enforced by Britain’s Ofgem. It helped the suppliers to increase their billing by over 10 per cent from 1st April. As per Mark Lewis, chief executive officer of Moneysupermarket Group Plc, the company’s reinvent strategy helped in robust share trading in the first quarter and is helping its customers to beat the increasing price cap on energy.