Income falls at Moneysupermarket.com's financial arm
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Revenues at Moneysupermarket.com’s Money channel dropped 40% in Q3 compared to the same time last year.
In its interim trading statement the company says the fall in income is due to due to significantly worse conditions in the credit market compared to this time last year.
The Money channel allows consumers to compare deals on financial products including mortgages, savings, loans and credit cards.
Yet across the group Q3 was the strongest trading period for the company, despite internet revenues seeing a 15% fall against Q3 2008.
Visitor numbers to the Money channel were marginally up on the same period last year.
Revenues generated from secured loans were markedly lower in 2009 compared to 2008.
Moneysupermarket.com attributes this to First Plus’ decision to close to new business in August 2008, as First Plus contributed £3.7m to the firm’s income in Q3 last year.
Excluding revenues from secured loans the Money channel declined by 19% against Q3 2008, which the company says represents a much slower rate of decline than recorded for the first half of the year.
Savings was the strongest performer in the Money channel as consumers looked to maximise their returns in a low interest environment and lenders sought to strengthen their balance sheets through consumer deposits.
Unsecured lending including credit card revenues improved in Q3, with the rate of decline slowing from the first half of the year and providing further evidence of some stability in lending volumes.
Insurance revenues were approximately 5% ahead of Q3 2008, largely driven by increasing visitor numbers.
Peter Plumb, chief executive of Moneysupermarket.com, says: “Overall, we are pleased with the performance in the year to date which is in line with the board’s expectations and remain confident that our sharp focus on delivery and the customer means that we are better placed than ever to capitalise on its strengths when growth returns to our markets.”
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