According to The Times, MoneySupermarket.com the price comparison site is set to float on the London Stock Exchange later this month, valued at between £841 million and £1 billion. Proof positive that you can make big money with affiliate marketing!
The times is reporting that, if MoneySupermarket.com lists at the top end of the range, at 210p, its value will be around ten times sales of £104 million for the 12 months to December 31, 2006. The multiple seems a bit high given that they’re valuing at 10 times turnover, with no mention of the level of profit (if any).
Looking at their site however you’ll find the Offer site with a set of key facts which explains that The Group generated revenues of £104.5 million and adjusted EBITDA of £33.0 million in the financial year ended 31 December 2006. So the valuation is based on a multiple of nearly 30 times profit - seems a little high to me, certainly higher than I’d be willing to make an investment at.
It’d be interesting to know where most of their traffic comes from as according to BlogStorm they have been actively buying links which according to Google is “Evil”. Though given the amount of TV (and other) advertising they do I suspect they’d manage fine without Google, in fact they claim on their offer site that 50% of their traffic comes directly to the site.
This blog is about business opportunities and ideas that I spot, think of or hear about and think are useful and interesting. It is intended to provide ideas and inspriation for you to help you find the right business idea for you to then grow it into a successful business.
Got A Question?
If you have a question that is not directly related to this post please consider asking it on the forums instead.