Aggregator chooses to maintain margins in face of effects of technology change and stronger competitor marketing
Moneysupermarket.com saw its insurance revenues fall by 10% in the fourth quarter of 2015 to £28.9m, with insurance revenues for the full year down 2% to £140.2m.
In a trading update to the London Stock Exchange, the financial services comparison site reported overall group revenues rose 5% to £61.7m for the fourth quarter, and were up 14% to £281.7m for the year, boosted by growth in energy and banking services. It said it expects full year operating profit to grow by about 13% to £99m, slightly ahead of market expectations. Full year results will be published on 1 March.
Insurance contracted slightly more than expected in the fourth quarter, the company said.
”At a time when we were finishing the migration to our new technology platform, we experienced stronger competitor marketing activity than anticipated and chose to maintain our margins,” it said.
”Initiatives are underway to bring momentum back to our Insurance business through the course of 2016.”