Moneysupermarket, a leading price comparison website, has reported record revenue for the 2023 financial year, driven by a surge in demand for deals on car and home insurance.
The company’s revenue reached £432.1m, marking an 11 percent increase compared to the previous year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a significant rise, jumping 14 percent from £115.5m to £131.9m.
Moneysupermarket attributed this double-digit growth in revenue and EBITDA to exceptional trading in its insurance division, as customers actively sought better deals amidst escalating premiums. Insurance revenue notably surged by 28 percent during the period.
Rising insurance premiums have been a concern, with the Association of British Insurers (ABI) reporting a 25 percent increase in the average price paid for motor insurance in 2023. Some figures indicate an even steeper rise, with a jump of 67.2 percent in the year to November, particularly pronounced in London.
Commenting on the market dynamics, Moneysupermarket stated, “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.”
Despite robust performance in the insurance sector, Moneysupermarket noted that it saw “no material revenue” from energy switching, a trend expected to persist in the near term. Additionally, softer switching activity in the broadband market led to a two percent decline in home services revenue compared to the previous year.
Nevertheless, the company remains optimistic about its future outlook, demonstrating its confidence by increasing the full-year dividend by three percent to 12.1 pence per share.
Peter Duffy, Chief Executive of Moneysupermarket, commented, “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.”
