Moneysupermarket Revenues Hit By Loans Drought

Fri, 29 Aug 2008

Leading price comparison website Moneysupermarket.com yesterday warned that revenues at its loans and mortgage channels had been affected by the credit drought among UK lenders .

The group’s chief executive, Simon Nixon, said banks had become less willing to lend under current market conditions and were offering fewer products and services on the Moneysupermarket website .

He also revealed that the pace of completed online deals had slowed due to lenders tightening their loan criteria.

The group reported that 41 per cent of its revenues had been generated from selling financial services such as credit cards, loans and mortgages during the first half of the year - down on the 47 per cent from the same period last year.

Mr Nixon said the company was close to launching a TV shopping channel and opening international offices in countries including Germany as part of efforts to expand the business and its over-reliance on the internet and the UK market.

He also revealed that marketing expenditure for the site would have to increase this year due to the significant rise in competition from rival sites such as Gocompare.com and confused.com.

Visitor numbers to the site increased almost 39 per cent to 62 million during the first six months of the year and transactions increased by 37 per cent to 39.6 million.

As a result, adjusted pre-tax profits for the first half grew 14 per cent to £30.1 million against a 27 per cent increase in revenues to £99.4 million.
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