Moneysupermarket.com’s (MONY) adjusted cash profits dropped by 14 per cent in the first half of 2020, as the pandemic hit its core markets.
Insurance revenue in April and May was down 30 and 25 per cent, respectively, compared with the same period last year, as demand was weakened by the closure of car dealerships, fewer drivers on the road, and a lull in the housing market. As lockdown restrictions eased, however, motor and home insurance returned to growth in June – although this was likely boosted by some pent-up demand. Overall, insurance was still down by a tenth last month and despite the relaxation of some travel restrictions, travel insurance has not shown any significant progress towards recovery.
The Money vertical was hit by a tightening in lending criteria during the second quarter, compounded by the absence of almost no promotional banking products. In April, May and June revenues dropped by more than 40 per cent.
The number of active users across its platforms dipped to 12.4m from 13m in the same period last year, primarily because of a decline in travel-related enquiries since March. Revenue per user held relatively steady at £16.29.
Broker Peel Hunt forecasts adjusted pre-tax profits of £90.8m and EPS of 13.6p for the year-end, compared with £120.7m and 18.2p in 2019.
| MONEYSUPERMARKET.COM (MONY) | ||||
| ORD PRICE: | 310p | MARKET VALUE: | £1.66bn | |
| TOUCH: | 309-310p | 12-MONTH HIGH: | 402p | LOW: 210p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 37p* | NET CASH: | £7.5m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 199 | 60.4 | 9.40 | 3.10 |
| 2020 | 183 | 51.4 | 7.60 | 3.10 |
| % change | -8 | -15 | -19 | - |
| Ex-div: | 06 Aug | |||
| Payment: | 11 Sep | |||
| *Includes intangible assets of £174m, or 32p a share | ||||
