July 19, 2018 / 10:42 AM / 7 months ago

Moneysupermarket reassures with decent Q2, boosting shares

LONDON, July 19 (Reuters) - British price comparison website Moneysupermarket.Com reported a better-than-expected 6 percent growth in second-quarter revenue on Thursday, driven by its division selling energy services.

Analysts at Barclays said that the company had delivered a “decent” second quarter and that it was reassuring there was no top-line disappointment after a volatile share performance in the year to date. They were predicting 5 percent revenue growth.

Shares in Moneysupermarket rose to a six-month high after Thursday’s update, and were trading up 8 percent at 335 pence at 1019 GMT.

Broker Liberum said there were encouraging signs that the new strategy, with the focus on personalisation, which should help to lock the consumer more into the range of products, was starting to work.

Adjusted core earnings for the first half were flat at 62.2 million pounds, while revenue rose 5 percent to 173.7 million pounds, the company said on Thursday.

Chief Executive Mark Lewis is trying to set Moneysupermarket apart from a host of similar price comparison sites by making its services more personalised and by moving deeper into product areas such as mortgages.

It said on Thursday it had established a 50/50 joint venture with Matt Denman and Mark Hawkins, who previously developed technology to give customers eligibility information for loans, to build an online comparison tool for mortgages.

“We all know finding a better mortgage is complicated,” Moneysupermarket’s Lewis said.

“We said we would do something about this and today we announce Podium, a new mortgage fintech, to build a comparison tool to bring customers the digitisation of mortgages – an easier and better way to arrange the mortgage that suits them.” (Reporting by Paul Sandle; Editing by Hugh Lawson)

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