Leading financial comparison site Moneysupermarket.com saw its Jan-to-June operating profits fall 89 percent from last year to £1.4 million, as the recession hit consumer spending.
The company, which went public in 2007, made revenue of of £68.5 million in the half, down £30.9 million year on year. Price comparison sites profit from thrifty, recession hit e-shoppers, but the recession has hit the company where it hurts. However, it stresses that visitor numbers totaled 63.6 million in H109, a three percent increase, and that revenue for the second half so far is 10 percent ahead of H208. Release.
Moneysupermarket may have suffered in the recession but it says trading is now “stabilised” under new CEO Peter Plumb and a restructured management team. Founder Simon Nixon is now taking something of a back seat role as executive deputy chairman and spends the majority of his time on his Simonseeks.com venture.
Moneysupermarket is hoping a high-profile ad campaign fronted by Dragons’ Den inhabitant and telecoms entrepreneur Peter Jones will lift it to positive growth when its next results are out. Shares in the company were down slightly to a low of 69.3p on Tuesday morning.
There’s still good news for investors: the company announces a £25 million, or 4.93p per share, special dividend on top of an ordinary interim dividend of 1.3p per share.