MoneySupermarket shares jump 10% as savings group travel and money agencies outperform after interest rates rise
- Moneysupermarket.com’s travel and money branches performed well
- The group’s share price rose more than 12% this afternoon amid an update
Shares of MoneySupermarket soared on Thursday as the group posted first-half performance that beat expectations.
The group revealed a stronger-than-expected return to travel and travel insurance growth, and “exceptional” trading within its Money business in the second quarter, driven by more competitive banking products.
The Bank of England‘s interest rate hikes have seen banks and building societies once again compete to offer the most attractive savings rates to consumers.
Ad campaign: Judi Dench spearheads Moneysupermarket.com’s latest ad campaign
In the six months to June 30, the group saw its pre-tax profit rise to £42.1m from £37m. Group turnover increased by 19% to £193.2 million.
Moneysupermarket.com shares jumped sharply today and rose 13.38% or 25.90p to 218.00p this afternoon.
Strong cash and travel performance helped the company offset the impact of the lack of a competitive energy supplier switching market.
Adjusted profit before interest, tax, depreciation and amortization rose 10% to £56.6m, beating expectations, and an interim dividend was maintained at 3.1pa.
The comparison site, which is currently led by a new campaign led by Judi Dench, increased its advertising spend by £20m in the first half to £83m from £63m in the year former.
The groud said its new campaign “resonated well” with customers.
He added: ‘Business momentum for the remainder of the year will be influenced by macroeconomic developments in travel and the ongoing transition to a steady state in the motor and home insurance markets following the introduction of regulations. FCA on general insurance pricing.
“We continue to expect the energy switching market to remain closed this year. Based on this, the board is confident to deliver adjusted EBITDA around the upper bound of market expectations for the year.
Peter Duffy, chief executive of Moneysupermarket Group, said: “As the cost of living crisis rages, we are doing everything we can to help the UK consumer.”
“We performed well with strong earnings growth despite some mixed end markets. At the same time, we are making strategic progress towards becoming a flexible, technology-driven savings platform, with all of our core data now in Google Cloud Platform.”