Moneysupermarket Group Plc (LON: MONY) have sunk during Thursday trading after slowed growth in the third quarter.
In the second quarter, the price comparison firm showed steady progress with 4% higher revenues of £100.9 million in the three months leading into September, but this was modest compared to 15% and 19% growth in Q1 and Q2 respectively.
The decrease was seen in its Money division, representing a fifth of the firms total revenues.
Money Division revenues fell by 5% to £20.6 million.
“Insurance grew in a subdued premium environment despite some volatility in our natural search rankings,” Moneysupermarket said.
In the trading update, Moneysupermarket have warned shareholders that profits may stagnate in the last quarter, taking a pessimistic attitude.
The energy saving division gave solid returns, due to the variety of retailers and large customer savings.
Moneysupermarket’s chief executive Mark Lewis said: “The group continued to grow in the quarter, with strong trading in energy showing that there are still big savings to be made by customers even though the price cap is lower.”
Liberum commented on the report, “hat the group’s weaker performance in money and insurance should be attributed to “subdued market conditions as opposed to moneysupermarket’s competitive position within price comparison. While the board is confident in meeting full year expectations, they have flagged that the money segment is expected to weaken for the remainder of the year,”
Moneysupermarket are in the development stages of a subsidiary called Reinvent, aiming to personalize deals for customers as well as expanding into the mortgage market.
On this, Lewis added ““Even better, our Reinvent strategy continues to do more for our customers – the new MoneySuperMarket Energy Monitor service means our customers need never overpay for energy ever again.”
The share price of Moneysupermarket is currently trading at 350.4p seeing a drop off 9.46% 17/11/2019 11:50BST.
In the retail market there have been updates to Angling Direct Plc (LON: ANG), Laura Ashley Holdings plc (LON: ALY), Dunelm Group plc (LON: DNLM), WH Smith (LON: SMWH).
