Moneysupermarket.com Group PLC Annual Report and Accounts 2013 Moneysupermarket.com Group PLC Annual Report and Accounts 2013 BUILDING OUR BRANDS TO DELIVER GROWTH WELCOME TO THE MONEYSUPERMARKET GROUP. HELPING CONSUMERS MAKE THE MOST OF THEIR MONEY Since 1999 we have been helping UK households save money on their household bills and finances. We help consumers through three leading brands: MoneySuperMarket.com, TravelSupermarket.com and MoneySavingExpert.com. HIGHLIGHTS 2013 Highlights • Group adjusted EBITDA increased by 26% to £84.0m • Successful first full year for MoneySavingExpert.com, contributing over £13m of EBITDA • Continued investment for growth • Earnings per share increased by 34% • Final dividend up 30% to 5.12 pence per share • Special dividend of 12.92 pence per share paid during 2013 • Total dividends for the year of 20.2 pence per share Revenue +10% Adjusted EBITDA +26% £204.8m £225.6m £66.5m £84.0m £148.9m £181.0m £41.0m £52.5m 2010 2011 2012 2013 2010 2011 2012 2013 Profit after tax +40% Dividend per share* +27% £24.8m £34.7m 5.74p 7.28p £7.7m £16.8m 3.83p 4.53p 2010 2011 2012 2013 2010 2011 2012 2013 * Excluding special dividends Adjusted earnings per share +21% 8.9p 10.8p 5.2p 6.6p 2010 2011 2012 2013 Contents 01 2013 Highlights 18 Principal Risks and Uncertainties Financial Statements 20 Corporate Responsibility Report 51 Consolidated Statement of Overview Comprehensive Income 02 MoneySuperMarket.com Governance 52 Consolidated Statement of Financial Position 03 TravelSupermarket.com 22 Board of Directors and Company Secretary 53 Consolidated Statement of Changes in Equity 04 MoneySavingExpert.com 24 Directors’ Report 54 Consolidated Statement of Cash Flows 05 Market Review 28 Corporate Governance Report 55 Notes to the Consolidated Financial 32 Audit Committee Report Statements Strategic Report 35 Nomination Committee Report 75 Company Balance Sheet 06 Introduction to Strategic Report 36 Directors’ Remuneration Report 76 Notes to the Company Financial Statements 07 Business Model and Strategy 49 Independent Auditor’s Report 08 Strategy in Action General 10 Chairman’s Statement 81 Shareholder Information 12 Business Review 82 Financial Calendar Moneysupermarket.com Group PLC Annual Report and Accounts 2013 1 OVERVIEW MoneySuperMarket.com helps consumers save money on their household bills by providing a free, easy to use service which allows them to compare a wide range of personal finance products and then choose the product that suits their needs. Our scale allows us to offer consumers exclusive, market leading deals, which aren’t available anywhere else. Money Visitors 41.7m Insurance Visitors 35.2m Home services Visitors 24.4m Helping every household through the Using our innovative ‘Smart Search’ tool, Helping with rising energy prices tough times consumers are able to match their own Rising energy prices became a political Although the UK economy is beginning to personal circumstances against the cards talking point during the year as recover after the financial crisis, finances and loans they are most likely to be accepted households were faced with average remain squeezed for many households in for, reducing the risk of being rejected. increases of 7.6 per cent, adding around the UK. The rising cost of living, driven by £102 to household bills. With gas and increasing energy prices, coupled with We help consumers find a decent rate for electricity prices now taking a greater stagnating salaries means that many their savings or get a foot on the property proportion of household expenditure people are finding it difficult to balance ladder by offering mortgages from over 50 each month, it is vital consumers can look their household budgets. Giving providers. We also help consumers look for to save money by switching to cheaper consumers the power to take control the right deal on current accounts and debt deals. Consumers were able to find the of their own finances means that solutions amongst other products. right energy tariff from 21 energy MoneySuperMarket.com is able to help providers through our site, and for those at a time when people most need it, Protection for peace of mind consumers who are unable to switch no matter what their personal finance Our insurance business allows consumers easily online, our dedicated phone-based needs are. to protect the things that are most support service helped them find a important in their lives, whether their better deal. Giving choice to borrowers and family, their home, their cars or their pets. helping savers At the end of 2013 we compared over 145 We are able to help borrowers get a credit car insurance and 102 home insurance card or personal loan by allowing them to brands, offering a comprehensive choice search for the right deal from over 30 to consumers. credit card and personal loan providers. 2 Moneysupermarket.com Group PLC Annual Report and Accounts 2013 OVERVIEW Launched in 2004, TravelSupermarket.com helps consumers make the most of their travel budget, offering them the ability to search for and compare package holidays, city breaks, flights, hotels and car hire. Our comparison tools allow consumers to choose the right deal for them at the right price so they can make their travel budget go further. Travel Visitors 55.9m Strong growth Making the most of your travel budget a new ski offering in 2013 for those looking Strengthening the range on offer at Despite the economic difficulties, taking for the perfect winter sport break to suit TravelSupermarket.com, we welcomed time out for a short weekend break or the their budget. several new providers on board in 2013, annual family holiday has remained including: LowCost Holidays, Caribbean important to many consumers. TravelSupermarket.com also helps Classics, lowcost USA, Netflights, Mark Research* conducted at the end of 2013 consumers make the most of their money Warner, Neilson, Ski France and found holidaymakers take on average while away; allowing them to hit the open Enterprise. two holidays a year, with beach holidays, road by choosing from over 200 car hire city breaks and trips to visit family coming providers, get the best value for their * Opinium Research carried out an online survey of 2,002 UK adults on behalf of out as the most popular options. holiday spending through access to the TravelSupermarket.com. Results have been right travel money provider and provide weighted to nationally representative criteria. At TravelSupermarket.com we have been protection for individual travellers and Of this sample, 1,659 qualified as able to help consumers save millions of their families through the right travel “holidaymakers”. pounds by offering a range of travel insurance products. products from a broad range of travel providers and displaying options in an Whether holidaying in the sun, to Europe easy to use, clear and functional way. or long-haul destinations, taking a city Consumers can choose from thousands break or enjoying a more energetic type of package holidays offered by over 34 of holiday, TravelSupermarket.com offers providers, over 650 low cost and a wide range of options for consumers chartered airlines, and access to more which can be tailored for their individual than 200,000 individual hotels needs, right down to paying for parking throughout the world. We also launched at the airport. Moneysupermarket.com Group PLC Annual Report and Accounts 2013 3 OVERVIEW MoneySavingExpert.com is one of the UK’s most visited websites. Each week, over nine million people are sent its ‘Martin’s Money Tips’ email and it has over 13 million users each month. Email sent to more than 9 m people Monthly users 13m MoneySavingExpert.com is one of the MoneySavingExpert.com is a campaigning There is also a suite of tools to help UK’s most visited websites, with over website. It is a major force in issues such as consumers save money. The innovative 13 million users each month. The site is reclaiming payment protection insurance new ‘Cheap Energy Club’, which saw over dedicated to cutting users’ bills and (over five million free template letters one million members join in its first year, fighting their corner with journalistic downloaded) and bank charges (over six is designed to help consumers constantly research, cutting-edge tools and a million free template letters downloaded). remain on the cheapest energy tariff. massive community - all focused on Alongside its founder Martin Lewis, it has There is also the ‘Local eBay Deals finding deals, saving cash and spearheaded successful lobbying over Mapper’, to find “pick-up-only” items that campaigning for financial justice. issues such as getting financial education are cheaper; the ‘Eligibility Checker’, on the English national curriculum (which which shows people their likelihood of The site is highly trusted. It is governed starts in September 2014) as well as being accepted for a specific credit card; by an editorial code, which dictates its consumer rights, payday loans and claims and the ‘Premium Bond Probability journalism should focus on doing what’s management regulation. Calculator’, which looks into the true best for consumers ahead of any likelihood of what people will win. commercial objectives and that it has MoneySavingExpert.com is driven by its complete editorial independence from weekly ‘Martin’s Money Tips’ email - a the rest of the Group. specific opt-in-only newsletter sent to over nine million people. Its forum is one of the UK’s biggest social networks in its own right, and it is at the centre of discussion of all consumer issues. 4 Moneysupermarket.com Group PLC Annual Report and Accounts 2013 OVERVIEW Market Review Economic uncertainty and the pressures on household finances have remained key themes in the UK in 2013. The Bank of England’s ‘Funding for Lending’ scheme, designed to improve lending from banks, had a positive impact on the ability to obtain credit but conversely it also impacted savings rates.