Moneysupermarket sees travel insurance bounceback as energy business struggles
The company has been at the mercy of external forces in recent months.
Moneysupermarket showed how closely its fortunes have been tied to events outside its control over recent months as Covid and the high energy prices drove its results.
The business has seen an eight-fold increase in revenue from its international travel insurance business.
In the first three months of 2021, it generated around £400,000 from its travel unit due to Covid-linked restrictions.
But as rules lifted, the first quarter of this year ended up being the best three months for two years for the unit, reaching £3.2 million in revenue.
We are pleased with the strong recovery in money and travel, and continue to execute well against our strategy
Meanwhile, the home services unit, which includes households switching to new energy suppliers, saw a major drop from this time last year.
Revenue plunged 65% to just £9.1 million over the three months.
Households have had little reason to switch to a new energy supplier for many months.
The high price of gas on the market has meant that suppliers have little ability or incentive to offer deals that are cheaper than the energy price cap, which is set by regulator Ofgem.
This has meant there is no reason for households to turn to comparison websites such as Moneysupermarket – they just go straight to the price cap tariff when their fixed-term deal ends.
It was the growth in the company’s money segment, which rose 37% led by a recovery in borrowing, that helped the business avoid a drop in overall revenue.
Total revenue rose 8% to £92.3 million.
Chief executive Peter Duffy said: “We are pleased with the strong recovery in money and travel, and continue to execute well against our strategy.
“With cost-of-living increases adding pressure to consumer budgets, our distinctive brands remain well positioned to help households save money in a broad range of areas.”