GoGo Group plc has released its results for H1 2019 and the results show that the company has seen its profits fall by 45 %. While the profits have fallen, the company’s revenues have stayed more or less the same with just a 0.3% rise in revenue. The company’s profits for H1-2019 were £9.5 million which is down from £17.3 million which was the company’s profit in the same period in 2018. Revenue was up to £76 million from £75.8 million in the same period last year.
GoCo Group, which owns price comparison website GoCompare.com, also saw customer interactions drop by 12.2%. The company’s customer interactions fell to 13.1 million as compared to 14.9 million in H1-2018. According to the report released by the company, customer savings have also fallen in H1-2019. Customers have saved £471 million in H1-2019, a fall from the £545 million saved in H1-2018. The fall reflects a 13.6% slump in customer savings.
Acquisition of Look After My Bills
Despite the negative figures that are being shown in its H1-2019 results, GoCo is excited to announce its acquisition of Look After My Bills. This acquisition, when paired with weflip, puts GoCo in a particularly strong position as far as its proposition in energy savings goes. The acquired Look After My Bills comes on board with a customer base in excess of 150,000 customers. After GoCo has acquired this company, their customer base has immediately been expanded to more than 175,000 live customers.
GoCo, through their spokesman, said that they believe their business will benefit from transformative business models with deeper customer relationships. These business models will lead to greater customer loyalty and this will generate sustainable recurring revenue and higher customer lifetime value. Look After My Bills comes with operational and marketing expertise and a proven track record of delivering a strong customer experience acquired at a low cost.
The group said that they expect to Look After My Bills and weflip to lead a significantly higher EBITDA (earnings before interest, tax, depreciation and amortization) margin profile for GoCo Group and be transformative to the overall earnings of the group by the year 2022. GoCo Group’s main aim is to find solutions that will help customers save time and money. They believe that the acquisition of Look After My Bills will help them achieve that while also proving their customer base with a way out of the arduous task of sorting household bills.
According to the chairman of the group, Sir Peter Wood, the results of H1-2019 show that the group has remained disciplined and focused on its core business. The group has also maintained its strategy to direct more capital towards the growth of weflip.
The Group’s first six months of 2019 have been a continuation of the company’s transformation into a tech led business says Matthew Crummack, Chief Executive Officer of GoCo Group. Crummack also said that the company wants to build the number of customers they have by at least 25% by the end of the year.