A booming market for customers looking for car and home insurance quotes helped Moneysupermarket achieve record sales in 2023.
The price comparison website reported revenue of £432.1 million in the 2023 financial year, up 11 percent from the previous year. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 14 percent from £115.5 million to £131.9 million.
The company said the double-digit increase in revenue and EBITDA was the result of “exceptional sales” in its insurance division as customers sought better deals in the face of rising premiums. Insurance revenue rose 28 percent.
According to the ABI, the average price of car insurance rose by 25 percent in 2023, although other figures put the increase in the year to November at 67.2 percent, with London leading the way.
“The combination of high premium price inflation and cost of living pressures resulted in high search traffic from consumers looking for better deals,” the company said.
Moneysupermarket was able to demonstrate its strong performance despite the company not receiving “any significant revenue” from the switch and does not expect this to change in the coming months.
In addition to a weaker transition in the broadband market, revenues from private services also fell by two percent compared to the previous year.
The company increased its full-year dividend by three percent to 12.1 pence per share.
“We helped our customers save a record £2.7 billion in 2023. The more we can help households save, the more the group grows. We are proud that Moneysupermarket, Moneysavingexpert and Quidco have been able to make a real difference for so many in difficult times for consumers,” said CEO Peter Duffy.
Analysts at Peel Hunt said it was a “stable end to the year” for Moneysupermarket, but warned the environment could become more difficult in 2024.
“Trading conditions are likely to become more difficult as we head into the new year. We still do not expect energy switching to make a comeback and insurance comparables are expected to become more difficult, particularly for the second half of the year,” they said.
