In a sign of the continued strength as
well as the high expectations of the online direct intermediation
market in the UK, Moneysupermarket.com, the leading financial
services comparison website in the country, has been valued at
around £1 billion ($2 billion) followingplans to sell 40 percent to
pay off debt, release capital and fund domestic and international
expansion via an initial public offering at the end of July.
The company has priced the planned
share offering at between £1.70 and £2.10, which will mean it could
raise around £388 million. Moneysupermarket.com, which also
operates the niche insurance site insuresupermarket.com, says its
website attracted 64 million visitors in 2006, a 67 percent risein
traffic.
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The group generated revenues of £104.5
million and adjusted earnings before interest, taxes, depreciation
and amortisation of £33 million in the financial year ended 31
December 2006, increases of 54 percent and 42 percent,
respectively, compared with 2005.
A time of high
activity
The move comes at a time of high
activity in the comparison website market in the UK. Tesco, the
country’s leading retailer and a powerful consumer brand, has
announced plans to roll out a financial services comparison
service. Another new entrant, Gocompare.com, has just
launched.
Royal Bank of Scotland is also
reportedly looking at the market. Along
with Moneysupermarket.com, established players include
uSwitch.com (see RBI 572), Moneysavingexpert.co.uk and
Yahoo-owned Kelkoo.co.uk. Moneysupermarket.com has a 46 percent
market share, according to research company Hitwise.
Moneysavingexpert.com has 19 percent and Confused.com, owned by UK
insurer Admiral,15 percent.
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By GlobalData In a move that could dampen
market expectations of the earnings potential ofcomparison sites,
Admiral recently halted a planned £650 million sale of Confused.com
(see RBI 573). “After careful consideration of the offers
made, the board of Admiral have decided to terminate this
consultation process,” the company said in a statement.
