Comedian helps keep Moneysupermarket revenue on the rise

In a trading update yesterday, the company said its investment in brand and product development, including a 2.5 million increase in media spend, had shown signs of paying off, with revenues expected to increase by 5 per cent to 71.5m and profitability improved.

But underlying earnings for the first six months of the year are expected to fall to 18m as a result of the higher spending, against 18.6m a year ago.

The company, based in Flintshire, north Wales, launched its latest marketing drive in January, alongside a 1.3m investment in product development.

Moneysupermarket said: "The results of the enhanced investment have been pleasing with gross margins increasing over the same period last year reflecting an increase in direct to site revenues in part aided by the new television campaign.

"Profitability improved throughout the period as the group began to see returns on these investments."

Revenues are ahead in all of the firm's operating businesses so far this year except travel, which has suffered as consumers rein in discretionary spending.

Excluding Travelsupermarket.com, internet revenues grew by just over 10 per cent, maintaining the momentum seen in the first quarter.

The group has also launched new motor insurance, credit card and savings products in the period, together with a mobile application for discount vouchers. A new home insurance product is expected to be introduced in the third quarter of the year.

The company added that results for the period are expected to be in line with the board's previous expectations. Although the year had got off to a slow start in January, trading had improved significantly in the following months

As at the end of June, the group had cash balances of about 28.5m.

Revenues slid by 22 per cent to 136.9m last year, with the damage done mainly by a 44 per cent slump in sales at its money division. Shares in the company closed down 1.25p at 67.85p.