MONY REPORTS RECORD EARNINGS AS MOTOR DEALS DRIVE GROWTH

MONY, the rebranded price comparison platform formerly known as Moneysupermarket.com, has reported record earnings for the previous year, driven by increased switching in the motor and home insurance markets. The company announced a 7 per cent rise in adjusted earnings before interest, taxes, and other items to £142 million, marking its best-ever performance.

Shareholders have benefited from this strong performance, with the dividend increasing by 3 per cent to 12.5p per share. MONY also revealed plans to buy back up to £30 million in shares before the year’s end. Despite the impressive growth in earnings, revenue from the core insurance business slowed to a 2 per cent increase in the final quarter, compared to 7 per cent growth across the entire year, as premium inflation across the motor market normalised.

The rise in premiums for motor and home cover has been a key driver of customer switching. Premium costs have surged in recent years, largely due to claims expenses, leading customers to compare prices more actively. At the end of this period, motor premium inflation was 2 per cent, while home insurance inflation reached 16 per cent, MONY reported.

While the core insurance division thrived, MONY’s money business struggled, with revenue falling 2 per cent to £97.8 million. This decline was attributed to a focus on profitability, resulting in a reduced number of attractive current accounts available to consumers. Nonetheless, cost reductions helped to bolster the company’s overall pre-tax profit, which rose by 18 per cent to £109 million.

MONY’s CEO, Peter Duffy, has led efforts to shift the company away from reliance on third-party pay-per-click advertising towards a member-focused model that incentivises loyal users. Active users across the platform fell by 300,000 to 13.8 million, largely due to fewer energy provider switches. However, revenue per active user rose to £18.54 as more customers purchased multiple products and shifted towards car and home insurance.

Founded as a mortgage listings business 30 years ago, MONY has significantly expanded its services, enabling consumers to compare everything from credit cards to broadband deals. The company also owns MoneySavingExpert.com, founded by financial journalist Martin Lewis. Its rebranding to MONY reflects this diversification and the broadening of its offerings beyond traditional price comparison services.

Looking ahead, MONY expects adjusted earnings to meet market forecasts of between £143 million and £152 million. Shares in the company have risen in response to this positive outlook, climbing by 4.9 per cent during the latest trading session.