Shares in Moneysupermarket (LSE: MONY), the UKs leading comparison shopping site for insurance and financial products, were up 1.3% in early trading this morning after the group reported an 18% increase in Q3 revenues.
Moneysupermarket.com, which accounted for 92% of the groups 2013 income, experienced insurance switching growth across all of its offerings. It reported strong progress with revenues increasingby 18% over the quarter.
A flattening out of motor insurance premiums helped to drive insurance sales 15% higher as more motorists compared prices and coverage, whilethe Money section of the site reported 24% revenue growth, driven by the continuing increase in credit card and loan comparison volumes.
The MoneySavingExperts Cheap Energy Club, which constantly monitors members tariffs and alerts them to any better options on a monthly basis, had another successful quarter, contributing to Home Services20% growth.
Smaller websites MoneySavingExpert.com and TravelSupermarket.com grew 21% and 23% respectively, although their combined contribution to the groupwas still only 20% over the period.
The group invested 17m into the business in the first half of the year and it seems to be paying off, with 3.7m customers using the website this year. The group also launched a pioneering new motor insurance site,which was not named,to a small number of customers. CEO Peter Plumb said,
We think this is easily the best way for customers to find the policy that best suits them you can compare features, benefits and exclusions of policies as well as price. Well be rolling out the new technology to more customers across our business channels in the months ahead.
At 30September 2014, the group had net debt of 18.1m. Management reported strong trading and margins in October and expected this to continue throughout Q3. The exceptional fourth-quarter demand for energy switching experienced last year is unlikely to be repeated, but the board remained confident that the group will meet its full-year expectations.
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Zach Coffell has no position in any shares mentioned. The Motley Fool UK has recommended Moneysupermarket.com. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.