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Advertising spend could pressure profitability as price comparison site battles competition
Thursday 13 Apr 2017 Author: Tom Sieber

Price comparison website MoneySupermarket (MONY) is poised to update on first quarter trading on 20 April.

Margin performance will be one of the key focus areas for investors. The price comparison space is extremely competitive and requires hefty marketing spend to protect market share.

Moneysupermarket’s 2016 gross margins fell from 80% to 75% partially as a result of higher marketing spend.

A recently launched advertising campaign from Moneysupermarket includes 1980s kids TV favourites He-Man and Skeletor.

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