Moneysupermarket.com Share Discussion Threads

[petersinthemarket] 10/3/2023 17:09

Very plain double top around 243p here. Often means a fall to come. Any chartists on here?

[kalai1] 16/2/2023 14:31

Moneysupermarket.com Group Plc posted Prelims for the year ended 31st December 2022 this morning. Group revenue was up 22% to £387.6m, adjusted EBITDA was up 15% to £115.5m and adjusted EPS was up 21% to 14.4p. Statutory EPS was up 30% to 12.7p. Performance has been very solid despite the BoE’s rate tightening cycle. The balance sheet is strong and strengthening, net debt-to-adjusted EBITDA fell to 0.3x (0.6x in 2021), but the dividend was left unchanged at 11.71p. Valuation is average with forward PE ratio at 15.9x, but dividend yield over 5% is generous. Some near-term positive share price momentum is building in the 2023 equity rally so far, macro risks are the obvious cloud to business and markets alike in 2023. MONY is an interesting Tech name for the long run, but it is still a share to monitor for the time being...

...from WealthOracle

[spud] 16/2/2023 08:15

A nice set of results and a good time to top up imo.spud

[markbelluk] 20/10/2022 15:11

Liberum raises Moneysupermarket to 'buy' (hold) - price target 215 pence

[spud] 20/10/2022 14:41

Looks to have stabilised.

spud

[thomstar] 20/10/2022 08:22

Goes up in good news 15 % then tanks back down the next day??? Stop hunt or pump and dump

[wba1] 19/10/2022 19:11

dd45; I am ashamed (at present) to admit the handle is from my team. But supporting West Brom seems to be more common than expected in insurance with the like of Martyn Capewell and Andy Homer (that's not me) ticket holders.

Today looks very overdone to me. I do not see this development having any effect on forecasts until 2025 at the earliest and that would put the p/e at 10 or even lower in 2024. I do agree that buying MONY would probably make most sense if they want to expand quickly.

The line up of companies is interesting. Coop will be desperate for any added volume. LV are really Allianz (who bought them and used the brand for retail). Colm Holmes took over from Jon Dye this year, having been elbowed to one side at Aviva, and will be trying to impress Munich. Ageas is more of a surprise as they are usually more focused on distribution they control more closely. What is relevant is that not one of the best underwriters of household business (Aviva, Direct Line, Zurich) have signed up. But household is a small market relative to motor and not very material to MONY bottom line even if Amazon do well - so the real test is what they do in motor.

[disc0dave45] 19/10/2022 13:37

The three insurance brands they've partnered with so far are: Ageas UK, Co-op and LV General Insurance.

[spud] 19/10/2022 13:34

Much simpler and quicker to just buy MS outright - What's the point in having pots of money when you can acquire a profitable, ready made business for pocket change -


Shares in Moneysupermarket.com (LSE:MONY) (Moneysupermarket.com (LSE:MONY)) slumped 8% as Amazon said it had launched a small online insurance store in the UK, with an initial focus on home policies.

So far it has just three insurers on board and plans to add more next year.

At first, the Amazon Insurance Store will only be available to a limited number of Amazon UK account holders, and payment will be taken from the same payment card used for other shopping.

This is a small start but Amazon has been eyeing the UK insurance market for a while. Last year it partnered with a London-based broker called Insuretech to offer a range of policies to small and medium-sized businesses.

Jonathan Feifs, Amazon's general manager of EU payment products, told the BBC that in the UK particularly, shopping for insurance online was "a well-established behaviour".

spud

[disc0dave45] 19/10/2022 12:36

wbaThanks for your insight, very interesting.Foregoing value is not the normal strategy for Amazon market domination, they usually operate at a loss to take market share, buy up competition and then increase margins and profitability. Ps is your handle a football club?

[wba1] 19/10/2022 12:18

disc0dave45; what they say publicly may not be the whole story. If they do not intend to be cheaper I will lay money it is because they are seeking to take the extra in added margin - and are leaning on the insurers for lower net rates even if they charge more to the customer. As for not going to the insurer sites, that means one of 2 things; either they are going to link into insurers rating engines from their site or they are going to build their own rating engine and try to strong arm insurers into underwriting common rates. If the former, that takes time as each insurer needs to agree, do its side of the build and be satisfied that there are good update protections in place (not trivial - I recall taking one intermediary for £250k when they updated our rates with those of another insurer). If the latter, it means the insurer will effectively be giving the pen to Amazon and treating them as a managing agency. No reputable insurer will do that unless they have complete confidence in the data, the engine and the person in charge of rating decisions. This may all explain why they only have 3 insurers signed.

[markbelluk] 19/10/2022 10:50

" The UK’s price comparison sites have seen consolidation over the past two years. British magazine publisher Future closed its £594mn acquisition of GoCompare in February 2021. Two months later, Silver Lake-owned ZPG, which owns Uswitch and property site Zoopla, acquired Confused.com from Admiral Group for £508mn.
"

[disc0dave45] 19/10/2022 10:35

Apparently Amazon won't be cheaper and they are focussing on more user friendly and easier sign up process (don't have to go to the actually insurers website). They only have three insurance companies signed up / so IMO zero "comparison" for customers.

[wba1] 19/10/2022 09:58

Depends on how you view the p/e. The 18x is historic based on a disrupted period. This year will be 14x based on the latest statement and analyst forecast suggest 2024 would be close to 10x. I can see no reason to expect a material change over that period. Further into the future depends on how serious are Amazon (and how the necessary partners react).

[adamb1978] 19/10/2022 09:52

I was contemplating buying this week after the trading statement, but the Amazon news is a game changer in my view.

It doesn't kill the business obviously, but the 18x PE which they're roughly traded at on average over the last few years needs to be adjusted given the new threat. Difficult to assess what size of adjustment though...

[wba1] 19/10/2022 09:37

I was underwriting director of a big insurer when Tesco announced they were entering the market and would steamroller the existing players (about 14 years ago). At that same time Amazon were also taking soundings. Tesco entered and bombed. Nothing significant came of the Amazon noises (I think they may have bought a tiddler to play with and explore). The issues were not ability to enter and access customers but rather the question of partner terms and build. They wanted better terms than the market, both in terms of rates and their own margin. Retail insurance (particularly motor and household) is effectively a loss leader for insurers who make their money through other products and use these to absorb fixed costs. Add in that comparison site business is the least profitable of the lot and better terms were not available. The current market COR for those products is awful and unlikely to get back to an acceptable level before 2025, so the big insurers will not play that game. If Amazon want to succeed they will have to take, at best, industry terms - or become an underwriter themselves (something else mooted from time to time, except why do it if you are not getting commercial covers to make the money?).

I am not saying Amazon will not succeed in the market, but to do so they will have to commit big money, accept terms they would usually dismiss and, even then, many insurers may decide not to play given the current state of the retail insurance sector (just look at recent COR's and reserve movements from Sabre, Direct Line, Aviva, Admiral).

I am holding, having been in and out a couple of times and with a current buy at 192p. The economy currently favours price comparison and those already playing are safe for at least 2 years.

[spud] 19/10/2022 09:20

Drop overdone imo. If it's to do with Amazon, then mark makes a very valid point.spud

[markbelluk] 19/10/2022 08:46

But dont miss the point here. If MONY becomes a competitor to Amazon they will simply buy it, especially give the weak £..i'm buying more

[m w] 19/10/2022 08:18

That's not helpful

[thomstar] 19/10/2022 08:17

Pump and dump?

[liam1om] 19/10/2022 08:14

Amazon to launch UK insurance comparison portal.

[m w] 19/10/2022 08:12

Why such a big drop this morning