H1 results: Confused profit dives after spending spree

Admiral owned price comparison site Confused profit almost halves

Admiral-owned price comparison site Confused’s profit almost halved in the first half of 2017 as almost flat revenue coincided with spending on a new marketing campaign and product development.

The Confused profit fell 46% to £4.5m in the first half of 2017 from £8.3m in last year’s first half following an 11% increase in marketing spend.

Revenue was almost unchanged at £44.9m (H1 2016: £44m) as falling income from non-motor products such as home and life insurance offset an increase in income from motor-related products.

At the same time, Confused faced a big bill for marketing and product development.

Admiral said in its first half results this morning: “The high level of competition in the price comparison market, new marketing campaign and product development required a higher level of investment and contributed to lower profits in the period.”

Admiral’s overall price comparison business, which includes its international price comparison sites as well as Confused, returned to profit in the first half of 2016.

Total price comparison profit was £2.4m, compared with a loss of £4.8m in last year’s first half.

This was caused by the international price comparison business narrowing its loss to £2.1m from £13.1m.

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