MONY Group Records 2% Drop in Revenue in Q3, Shows Confidence in Full-Year Outlook

October 16, 2024 06:25 PM AEDT | By Team Kalkine Media

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MONY Group Records 2% Drop in Revenue in Q3, Shows Confidence in Full-Year Outlook — Image source: Shutterstock

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Key Points

Overall revenue for Q3 was 2% lower, primarily due to challenges in Travel and Home Services.

Insurance revenue grew by 1%, while Money sector revenue declined by 4%.

The SuperSaveClub loyalty program has surpassed 750,000 members, enhancing customer engagement and product offerings.

MONY Group PLC (LSE:MONY) has released its trading update for the third quarter (Q3) of the financial year, reflecting a solid performance despite facing several market challenges. Overall revenue for the quarter was 2% lower, primarily due to headwinds in the travel sector and ongoing soft market conditions in home services. However, the company's strategic initiatives and growth in other areas provide a positive outlook for the full year.

Key Performance Highlights

Insurance Segment: Insurance revenue grew by 1% in Q3, demonstrating the company’s disciplined approach amidst a competitive pay-per-click (PPC) environment. This growth comes in the wake of Q3 2023, which experienced peak levels of car insurance premium growth, making year-on-year comparisons particularly challenging.
Money Sector: Within the Money segment, the company saw strong performance in credit card switching, although current account switching remained soft due to a lack of attractive offers during the quarter. Consequently, revenue from the Money sector declined by 4%.
Home Services: The Home Services sector reported an 8% drop in revenue, mainly due to reduced demand for broadband services and a lack of compelling new handset launches in the mobile market.
Travel Sector: Revenue in the Travel segment faced significant pressure, dropping 15%. This decline was primarily attributed to lower conversion rates in car hire services.
Cashback Program: On a positive note, the Cashback program saw a 2% increase in revenue, fueled by continued member growth throughout the year and strong performance in insurance offerings within the Cashback platform.

Strategic Developments

The company is making strides with its SuperSaveClub, a member-based loyalty and rewards program within MoneySuperMarket. The program has successfully grown to over 750,000 members, and the company has expanded the range of available products to include single-trip travel insurance. This addition is expected to encourage more regular engagement from members, similar to the earlier enhancements made in the Cashback program. Currently, there are 11 products live in the SuperSaveClub, providing customers with multiple avenues to save.

Outlook for FY2024

Despite the challenges faced in Q3, the solid performance and ongoing strategic advancements give the Board confidence that MONY Group PLC will deliver full-year results for 2024 that align with current market expectations. However, the company has reiterated that it anticipates no material energy revenue for the fiscal year 2024.

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