Moneysupermarket positive as markets recover
By Josh White
Date: Thursday 22 Jul 2021
(Sharecast News) - Moneysupermarket reported an 11% fall in revenue in its first-half results on Thursday, to £162.3m, due to Covid-19 market impacts and challenging energy market dynamics.
The FTSE 250 company said its gross margin was up about 3 percentage points, however, driven by more efficient customer acquisition and improved conversion in money.
Adjusted EBITDA fell 18% to £51.3m, with operating costs in line with guidance, and cash conversion described as "strong".
Operating cash flow fell by 16% to £35.1m, and net cash at period end on 30 June stood at £8.8m, up 17% year-on-year.
The board maintained an interim dividend of 3.1p, which it said reflected the "robust" cash generation reported, and its confidence in the business.
Looking ahead, Moneysupermarket said its markets were recovering at different rates, adding that in insurance, its channels excluding travel had returned to more normal trading conditions.
It said it was expecting continuing gradual improvement in money , while the expected increase in the energy price cap in October would likely improve customer savings levels, assuming wholesale energy prices declined.
On that basis, the board said it was confident of delivering on its market expectations for the year.
""I'm delighted that we have again helped millions of UK households save on their bills, while providing valuable financial information and tools through these uncertain times," said chief executive officer Peter Duffy.
"Strategic improvements to the business are progressing well, delivering good margin gains."
Duffy said the company's markets were still "on the road to recovery" ahead of likely more normal trading conditions in 2022.
"Cash generation remains strong, with the dividend reflecting our confidence in the business and opportunities ahead."
At 0908 BST, shares in Moneysupermarket Group were up 1.81% at 259.2p.
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