Thank you all for standing by, and welcome to today's MoneySuperMarket Group Quidco acquisition and Q3 results conference call. Our presentation for today will be followed by a question and answer session. To ask a question over the audio, please press star one on your telephone. Please be advised the call is being recorded, and I would now like to hand the call over to your speaker, Mr. Peter Duffy. Thank you.
Thanks, Paul. Good morning, everyone. Thanks very much for joining the call. I'm Peter Duffy, CEO of MoneySuperMarket Group . This morning I'm also joined by Scilla Grimble, our CFO. Hopefully you've had the chance to read our two releases this morning. Given this is an unscheduled call, which we wouldn't typically do for a quarter, we're very grateful for you making the time for us this morning. Now, primarily, we want to talk about the very exciting Quidco acquisition we announced this morning and how this is going to move the group forward. In addition, I'll also take the opportunity to talk briefly about our Q3 results. In terms of Q3, we reported three main points. Firstly, revenue down 10% for the quarter, which I'll talk more about in a minute.
Secondly, good progress in delivering our strategy, particularly around data and efficient acquisition, but also as a result around margin. Thirdly, we confirmed that we expect to meet market expectations for EBITDA for the year. Specifically on revenue. We are pleased with the performeance in Money, where borrowing and banking channels continue to recover, and we are now close to 2019 revenue levels. Particularly towards the end of the quarter, we saw signs of recovery in travel, and we also completed the combination of TSN and Icelolly at the start of September. However this was offset by home services and, disappointingly, insurance. Home services, I'm talking about energy here, has seen unprecedented conditions through dramatic increase in wholesale prices.
These have risen significantly through the year and then very sharply in September, meaning that despite the movements in the price cap, customer savings were severely challenged, going from sometimes negative to frequently negative, to the point where almost no switchable tariffs are available. Realistically, we don't expect energy switching to come back this year. Now, we flagged at interims the competition in insurance was intensifying and that we were lapping a strong 2020. Still, I want to see a stronger performance here. We are improving margin across our core insurance channels, but I want to be clear that we're extremely focused on the top line. New television advertising launched at the start of September, which is clearer, simpler, and more focused on savings, and it highlights car insurance specifically. With improved CRM and PPC rolling out later this month as well.
Let's pick up specifics in the Q&A. I'll now turn to the acquisition of Quidco, which we announced today for a total consideration of GBP 101 million. Many of you will know Quidco, which is the U.K.'s second-largest cashback site. It offers customers the opportunity to save on purchases with 4,500 merchants, including retail, travel, and switching services. We already have in the group known and differentiator brands. We have MoneySavingExpert, a publishing-led whole of market offer that engages through its own proprietary content. We have MoneySuperMarket, a classic price comparison website that we are evolving into a much more personalized experience. We have Decision Tech, which offers our services to third parties, and we have Ice Travel Group, focusing squarely on the holiday market.
To this unique portfolio, we now add a new and differentiated savings proposition in the form of Quidco. Let me draw out three components of the deal rationale. Firstly, we get to enter, at scale, a new part of the customer savings market, the cashback market, that is growing, profitable, and with significant headroom. Quidco is the second-largest cashback site in the U.K. with a popular membership model and close to 1 million transacting customers in the last year. We think we can improve that further. It covers a far broader range of categories than just financial and household services, mostly retail, but in a normal year, travel as well. Secondly, Quidco will benefit from the group's capabilities. We will leverage our tech, our data, our marketing expertise to improve the Quidco offering.
As we continue to expand our B2B white label services, we'll be able to deploy those into Quidco as well as into our other brands. Thirdly, and sort of in turn, the group will benefit from Quidco's capabilities. Quidco brings a broad and leading cashback offer, as well as a related deals flow and membership program. This is a highly engaging package. Quidco users transacted 11 times on average last year. That's far more than we see in traditional price comparison. As with the successful acquisition of Decision Tech in 2018, over time, we will expand, align, deploy elements of the Quidco model into other group brands as appropriate. As I said, this is an exciting day for the group. There is, of course, the addition of Quidco, but this also accelerates us towards being a true portfolio and platform business.
A platform of strong common capabilities, data, marketing, price comparison, et cetera, all supporting a portfolio of known and distinct brands. A number of the brands we support are through DT, but in addition to Ice Travel Group, we now have three leading in-house consumer brands, MoneySuperMarket, MoneySavingExpert, and I'm delighted to say, Quidco. With that, we'll open the floor and Scilla and I will take your questions. First question please.
Thank you. The first question is from the line of Joe Barnet-Lamb from Credit Suisse. You may ask your question.
Excellent. Thank you very much for taking my questions. Firstly, just one on Q3 and then onto Quidco. Within Q3, so I guess within insurance you've had competition softening markets. At the same time, you're clearly delivering strongly on margins. I guess, are you losing market share in insurance? If so, in addressing that issue, do you believe you'll need to give back the margin gains that you have acquired? You alluded to some of the things you're doing, just interested if you could talk about that balance a bit more specifically, please, Peter. Onto Quidco. I have many questions, I will limit it to two here and see if I get another slot later. Can you give some more detail around the financial performance in recent years, particularly the impact that COVID has had on the business over the last few years?
I think you mentioned travel. Then sort of building off that, what your views are on growth going forward. Finally, you sort of say that it's the number two. I believe the number one player is TopCashback. Could you talk a little bit about how the competitive dynamics between Quidco and TopCashback have trended in recent years? Are Quidco sort of gaining or losing market share? How do you see that dynamic? Thank you.
Great. Thanks, Joe. I'll take the first question on Q3 and insurance. I'll pass the two and three onto Scilla. On Q3, look, we want to do better on the top line when it comes to insurance. We are doing well in terms of margin. We are now confident that we are buying our PPC up to the point where marginal revenue equals marginal cost, which is something that we have always said we want to do. We can now be sure that it is happening in practice. We need to do better at driving the top line. Fundamentally, that is what the new advertising is about. That is why we are putting it front and center. We have our CRM program literally rolling out as we speak, which will be recontacting customers who spoke with us last year. We have got a big focus on SEO as well.
To be really clear, I want us to do better on the top line as well as on the margin. Your question is, does that then come at the cost of margin? That's not what we want to happen. Unfortunately I'm going to have to say you're going to have to bear with us as we begin to work through this. It's the plan to actually deliver top line and margin improvement. I can be very clear about that. Scilla, do you want to pick up on the next two questions?
Sure. In financials in particular, I think your question really is going to relate to revenue. Remember, revenue for the Quidco model sort of splits into two broad buckets. The first is commission for sales generation, and most of that is then passed back across to users in the form of cashback. Then the second bucket is, think about it as sort of marketing fees. Placement fees on site and the like. The second bucket is quite relatively easy to give you clarity on. That tracked at about GBP 13 million or so fairly consistently over the last few years. The other bucket is the one which has been impacted more by what's been happening in travel as a result of the pandemic.
The kind of thinking is to, and Peter touched on it, but there are three broad categories that people shop within. There's retail, there's travel, and there's financial services. Clearly travel has been that one that has been impacted. The Quidco financial year runs through to July, and I'm sure some of you have already been on Companies House, so you'll have the numbers already. 2019, so to July 2019 was GBP 76, then clearly they got the impact of COVID in the next financial year to GBP 68, and then the numbers that you've seen in the announcement this morning. As with our travel business, and we've been saying we're seeing some green shoots, my expectation is that that would also flow back through into cashback, and cashback sites in general.
Hopefully that answers the question in relation to financials, Joe, but I'm sure you'll come back if not. Then in terms of-
Can I just say, do you mind if I follow up on that just while I have you on that topic?
Yeah, of course. Go for it.
Between those two buckets, you've got commissions on sales, which seems like it's sort of the more volatile side, and that's where the travel segment has been impacted materially. The other side, you've got the marketing fees. I think you said GBP 13 million of marketing fees, which has been broadly stable over the last couple of years. When we think about the profit contribution of commission on sales versus marketing fees, should we assume that the lion's share of Quidco Group profits come from marketing fees rather than commission on sales?
Let's break down to three key elements, Joe. There is the marketing fees, exactly as you're describing. Within the sales commission, there are some which are directly linked to customer activity, and then there'll be some merchant partners that want to deliver a particular aim. In order to deliver that particular aim together with Quidco, they'll agree a slightly different commission structure, and therefore there'll be some retention in relation to that. The other element is the membership fee. Peter's touched on that. But you're correct. When you see the growth margin, the lion's share of cost of sales is the passback of cashback to users. You can see that dynamic in terms of that sales commission versus the cost of sales, and that gives you your lion's share point.
I think we've got the third question, which was about Quidco's main competitors.
The two main cashback sites in the U.K., Quidco and TopCashback. Quidco is, as we would describe it, a challenger brand, and I am sure Peter will come onto that a bit later. TopCashback is about 30% larger than Quidco, and that is sort of been the case for a few years.
There are two other very small competitors, but really, the market involves TopCashback and Quidco. Thanks, Joe.
All right, we'll take our next question. It is from Andrew Ross from Barclays. You may ask your question.
Great. Morning, all. First one, just to follow up on Joe's question there on the split of gross profit. Just clarify exactly how it breaks out between marketing fees, commission income, and membership fees within that GBP 21 million. I'm not sure I fully understood that. That's the first one. The second one is just to break out the cost base in a bit more detail between gross profit and EBITDA, and in particular, to understand how much marketing there is and how Quidco goes about acquiring its customer base. The third one is on the group balance sheet. I guess this will take you to a bit under 1 x levered. How should we think about that from here?
Is the policy now to kind of trend back towards a net cash position, or are you comfortable perhaps running with a bit more leverage on a more permanent basis? Thank you.
Great. Thanks. Scilla, can you pick all three of those up?
Sure. I'm not going to really split down the gross margin, Andy beyond what I have done. As I said, about GBP 30 million of marketing-based fees, and you can see that will flow through basically directly into gross profit. The other elements, although the point as I touched on in relation to the additional commission to hit particular targets that the merchant wants to, and is using Quidco to achieve. Then to the extent to which cashback is not claimed by users over a period of time, then that gets taken through to the P&L in the form of breakage. That's the only sort of disclosure of gross profit that I'll give at this stage. I'm jumping around a bit. Someone remind me of the second question, sorry.
In terms of leverage, yes, following the deal and using the 101 headline, we're about 0.8 x in terms of the former EBITDA. You'll have seen within the acquisition notes that we're funding the deal through a combination of the RCF and an amortizing term loan. That's got a three year term on it, so 2026 in terms of the repayment profile percentages there within that term loan. We have always been clear, I think, in terms of the total capital allocation. Funding organic growth, then the progressive board, then M&A, then returns. I think we've always been clear that it's the sort of business in terms of the cash flow, and you've seen it even during the pandemic, that we could hold a bit of leverage on balance sheet quite comfortably.
We'll continue to follow that capital allocation policy, and I would be comfortable with a bit of leverage on balance sheet. Sorry, the second question, Andrew, could you remind me?
It's breaking up the cost base between.
Breaking up the cost base.
Yeah, gross profit and EBITDA and the marketing and how it acquires customers.
Mainly the cost base is people related, so sort of think people in tech. At the moment, little above the line marketing spend. They're not massively active in PPC. It's very sort of successful retention as we talked about in terms of that 11 times a year usage, and a very successful refer-a-friend marketing campaign. In general, in terms of the overarching theme on the acquisition, we would point this towards being a revenue-enhancing acquisition rather than a sort of cost synergy-based one.
Thank you very much.
Our next question, it's from Malcolm Morgan from Peel Hunt. Your line is now open.
Good morning. If I go onto the Quidco website already, I see there is an opportunity to compare, save, and get cashback, so compare car insurance. I also see that MoneySuperMarket car insurance is one of the listed financial and insurance partners. Can you give me some guidance on, sort of A, the relative size of financial services within Quidco's revenue stream as it stands? Secondly, the nature of your existing relationship with them, I mean, in terms of what is one person's revenue, one person's cost base. Third, the potential for either cannibalization or you substituting the sort of comparison services that are offered on the Quidco website. I just want to understand the existing sort of intricate relationship you have with Quidco.
Great. Thanks, Malcolm. Scilla, do you want to take the first one? I'll take the third one on cannibalization. The middle one is just about affiliate deals. I'll just do that as well. Do you want to just start with Malcolm's first question?
The first part was sort of how does the relationship work today, Malcolm?
No, that was the second.
sorry, I just understand the mix of what proportion of Quidco's revenues are financial services based-
Yeah. Sorry.
Versus retail.
Yeah. There are three broad buckets. There's retail, financial services and travel. Clearly the last year, as we've touched on already, travel was depressed off the back of COVID. From a transaction perspective, as in terms of volume, retail is by far the, to steal Joe's phrase, the lion's share of those transactions. It's not quite so sort of skewed towards retail when we're looking at value, Malcolm, but I wouldn't want to share that breakdown at this stage.
And Malcolm, MoneySuperMarket is just on there at the moment as an affiliate. Just in the way that that would typically begin to work. In terms of the question of cannibalization, what you've got, I think, really is a very discreet proposition in Quidco that is something different to MoneySuperMarket. MoneySuperMarket is being developed out as something which will be much more personalized, much more data led. Quidco is a proposition that enables customers to save across a very broad range of categories, including home services, including financial services, essentially. We don't see these things as necessarily cannibalizing each other. They are approaching very different parts of the market as MoneySavingExpert and MoneySuperMarket approach the market in different ways, advice versus a more transactionally kind of led model. It isn't that we see one potentially moving into the territory of the other.
It just gives the group broader scope across a range of customers who we, to be frank, aren't touching today in the way that we think this is going to enable us to touch tomorrow. Hello.
Okay.
Is our host there?
Yes. Our next question is from the line of Ciarán Donnelly from Liberum.
Thank you. It's Ciarán Donnelly, but close. I wonder, could you just quickly run us through the drivers of the softness in car and home insurance markets? Just second question, you highlighted the higher year gross margin in insurance. Can you just give us some color around the difference between the H1 margin versus the Q3 margin? Also if you could give us an indication of how gross margin performance has been for the group for the first nine months. Then finally, just within the cashback market, if you could give us an indication of how it's been growing pre-COVID and how Quidco has kind of grown relative to the market size. Thanks.
Okay. Scilla, do you want to pick up the Q3 questions?
Sure. Car and home softness. Let me step back a bit just on insurance in total. - 10% for the quarter. Remember as ever, the sum of four parts. Travel, we've given quite clear guidance on. One thing to remember, we talked at interims on life insurance. The third largest of our insurance channels, about how we've pulled away from providing vouchering. That does impact that mix between gross margin and revenue. It results in lower revenue. We're very pleased with our performance in terms of life gross margin in Q3, and that is up year-on-year. That sort of deals with most of the rest of insurance. Turning now to kind of car and home. Remember that there's a bit of a change in comp. Q2 2020, very soft as a result of the pandemic.
Q3, very strong last year, particularly in car as a result of some pent-up demand. We sort of mentioned some of that at interims. The other thing that we mentioned at interims was, yes, we're doing lots of great work in terms of our efficient acquisition, but what we have seen at that stage, sort of most of the way through July, is the auctions hotting up quite significantly. That continued to play out through the quarter. The auctions were particularly competitive. We remained very disciplined in relation to our margin targets. Naturally that does play out a bit. Peter mentioned in his opening remarks we want to do better from a revenue perspective. Remember we launched our new ad campaign in September. We think much more relevant to the category, focused on car insurance in that sort of first launch campaign.
Inevitably, you get a bit of a mix of your spend when you know you're going to relaunch, so we were spending a little bit less in the run up. The other things I'd point to on the go forward are moving car and home onto the new CRM platform towards the end of Q3, and us continuing to deploy further smarts within the way that we're bidding. As ever, it will remain a bit sort of push and take, if you like, on the business of the auctions versus what we're doing in terms of self-help. That's insurance, Ciarán. Turning briefly to margin, I'm not really going to give you any more color than we've given within the statement, but really just to refer you back to what we said at the interim.
Remember, at that point in time, just over 300 basis points improvement. About 2/3 of that was as a result of efficient acquisition. Some of the points that I've raised already in relation to life insurance, and then what we were doing in relation to the car and home, in particular, in terms of paid acquisition. That's continued to play out into Q3. We said the majority of the rest was as a result of money conversion continuing to improve, and we've highlighted in the statement this morning that we're continuing to see that improve. Those things that were there at the first half have kind of persisted into Q3.
Another couple of things which we flagged, remember, in the margin structure, so we lost the contract in B2B, and we said that that was going to be upside of sort of broadly 2 percentage points in a half, 1 percentage point in a year, as a result of losing that. There were some other mixed points, and then I will stop on margin. Mixed points, remember, with lower energy, particularly lower Cheap Energy Club means a higher margin for the group because we don't give the cashback because we're not making those sales. The only other point was we sort of flagged when travel returns, we expected that to be a margin headwind, travel insurance, this is. Actually, the way that it's currently playing out, and it's really early days, but currently playing out, is it's not a margin headwind at the moment.
Great. Thanks, Scilla. Ciarán, in terms of your question on the cashback market pre-COVID, it was growing by about 12%-15% before the pandemic. As Scilla's pointed out, by volume, this is a very retail-led business. By value, it's much more balanced between travel, between the services, financial services, and retail. You can see the impact kind of coming through as a consequence of the period of pandemic. But before that, it was double-digit growth.
Sorry, just to be clear. Quidco, was it growing ahead of the market?
You were asking for the cashback market. The cashback market, really because we've said is sort of two really big players and then a couple of really small ones. If we look at the combination of those two brands together, the market was growing at about 12%-15%. Now we think we can help here a lot. We've already observed that there isn't a huge amount above the line. It's a very successful member-get-member scheme. It's a founder-led business at the moment and has had no external finance. It's been led very well, but I think growth is one of the areas where our group can begin to help and support in a way that hasn't been possible within the constraints that Quidco operated in historically.
Okay, great. Thanks.
Next question, please.
Yes, the next question is from the line of Bridie Barrett from Stifel.
Morning, everyone. You've actually addressed a lot of my questions, but just a couple remaining. Firstly, just on Quidco, you've given us a sense of the revenue contribution for financial services and retail. Are you able to let us know where travel was in 2019 so we can sort of understand what the normalized contribution might be to that business? That's the first question. The second question, just on the money segment. Obviously, we're seeing a nice rebound there from last year. Can you maybe just give us some context around the product environment at the moment and any views you might have on the potential impact of interest rate changes? Just finally on the app and what you're sort of doing on the retention side of the business, I wondered if you wouldn't mind updating as to any progress that you're seeing there. Thank you.
Great. Thanks very much. Scilla, do you want to do revenue contribution and Money segment, and I'll come back on the app?
Sure. Bridie Barrett, I'm not going to give you any more than Peter's already given in terms of those broad measures. I think the important thing to bear in mind just in terms of the profit shape is that most of that new revenue will be passed back to users in terms of commission, in terms of cashback. Yes, we'll get a rebound in revenue, but it'll be a much less significant rebound in profit off the back of that. As I said, the sales-based marketing fees have held up really well, been very consistent across the years from 2019 through to 2021. On Money, it's really been sort of further continuation of the themes that we shared at interim. We've been very pleased with what we've seen in conversion.
Pleased in terms of what we've seen in terms of both providers and products coming back on panel, I think we shared at the interims we were pretty much close back to pre-pandemic levels. Search volumes are still a bit lower year-on-year. That's where if we want to kind of move forward further, we would like those search volumes to improve. Leads me nicely onto your question on interest rates. I think what we've seen in the past is that across a number of different channels is that when there is noise, the noise in and of itself can often generate traffic. That can be some upside to us, particularly in the context of a vertical, which is skewed a little bit towards MSE, and obviously, the more you can talk about things from an editorial perspective, the better.
It will obviously help in terms of savings to the extent to which we can get a headline rate which sort of feels more meaningful to people as we go forward. Finally, just when we've looked at banking in particular in the quarter and calling out some improvement there, to date, that's mainly been current accounts. There haven't been any benefits in relation to expectations of interest rates increases in savings. Peter, I'll hand back to you.
Great. Actually, Bridie, if I can start with the Quidco app, because Quidco proposition has a really nice app, and it's a very good mix they have between the web-based proposition and the app proposition. I think that's very interesting. In terms of the overall group and our propositions and the app, it's something that we absolutely are thinking of. We are beginning, obviously, with the data-based approach to make sure that we can personalize the product, and then we'll look at how that then becomes relevant, certainly for MoneySuperMarket, but we're also looking for what a relevant app-based solution for MoneySavingExpert would be. I don't have any news for you specifically on either of those, bar to say that it is very much in our minds at the moment.
Thank you.
I wonder if investor relations, Ian, do we have anything?
Yeah
from the website that we need to bring? Okay.
Yeah, I was going to say, we've covered, I think, a lot of the website questions. One saying, "To what extent do you envisage further acquisitions focused on plugging new services into MoneySuperMarket's data, marketing, and tech platform?" That's from Rodney Davidson.
Okay. I think that's a really helpful question. There are two components to this deal that I think really excites us. One is obviously the Quidco business in its own right, but secondly, how it accelerates our move to being a platform business. Essentially what we mean by that is that we're looking at all the services that are currently offered across the group, and identifying how we can deliver that once and deliver that then in meaningfully different ways into each of the brands where that begins to make sense for those brands. The best example of that, I guess, would be home services, where we have moved MoneySuperMarket onto the Decision Tech platform . MoneySavingExpert will be moved onto that within the next few months in entirety.
That means that those services not only can support the group brands, but also then can go into our B2B offering. We'll be looking to do that more broadly, which will be the way that we facilitate Quidco being able to access group capability, and in turn, that will begin to open up B2B opportunity at relatively low and incremental cost for us. What we've always said about M&A is that we horizon scan. We're on the lookout for propositions which we don't currently have in the portfolio, and I don't think you could get a better example than Quidco for that, really. Where it makes sense for us to add something in that we don't do, that we can't build ourselves, at the scale that we would need to be credible within that market.
We always look for groups of customers who we're not currently serving, capabilities that we don't currently have within the group, propositions which we're unable to quickly and efficiently develop ourselves. Just to say that we are always live to what the market is doing, and we will only do things that are sensible for our shareholders. Ian, any more questions from the website?
Not from the website, but I think we have a couple more on the line, so maybe operator you can go back to that.
We still have two questions on the queue. It is from Joe Barnet-Lamb again. You may ask your question.
Tremendous. Just one quick follow-up from me. You sort of mentioned that it wasn't really driven by cost synergy story. Can you confirm that you are not expecting any cost synergies? Related to that, should we expect any integration costs? I don't think there's any mention in the release. Perhaps if there aren't cost synergies, there aren't integration costs. If you just clarify on that would be great. Thank you.
Yeah, we can clarify on both, Joe. Please don't build in any significant cost synergies, and we're not expecting any significant integration costs beyond what's already in budget. Scilla, do you want to add anything to that?
Yeah. The only thing in the acquisition notes, Joe, you'll have seen we've guided to GBP 1 million this year and half a million GBP next year of effectively a sort of deal-related and one-off costs. Otherwise, yes, completely agree with what Peter's saying.
Thank you.
Operator, I think he had another question.
Next question. Yes. The next one, it's from Malcolm Morgan. Thank you.
Hello again. Sorry, I put myself on mute. Otherwise, I'd have asked these earlier. Two questions, one very specific and one general. Can you just say how you intend to disclose and report on Quidco going forward? Will it be simply absorbed into the existing structure, or will we see the sort of evolution of gross margin separately broken out? Any guidance on what we should be expecting in terms of reporting? That's number one. Secondly, I suspect we can all guess what the answer will be to this one. You are silent on the outlook for the energy marketplace, specifically looking into the first half of next year. Any insights or any thoughts you might be able to give on the potential evolution of that energy marketplace, whether it's as a sort of existential risk or a brilliant opportunity, or quite how.
Sure
You're thinking about that first half of next year, which I think is probably ultimately going to be the decisive half for the industry, would be really helpful.
Sure.
Thank you.
Let me go on energy, and then I'll hand over to Scilla on reporting. Look, what we're seeing in the energy market is fundamental, but I don't think cataclysmic change. What we're seeing is clearly a reduction in providers in the market. We are anticipating that we will get to a point where. We still do have a significant number of providers in the market that is more akin to what we see in the other categories where we operate. If we take broadband, for example, we can have a dozen, 15 providers and have very competitive markets. To be frank, that's how energy actually did work, if you go back 10 years in terms of where we are. What's clear is that a number of providers are going out of business. The customer will have a smaller range to begin to choose from.
We fully anticipate that the market will be highly competitive as and when that begins to return. When that does begin to return, obviously we don't have the price cap rise until April, and we have to have a look at where wholesale energy prices are. We're not anticipating that that's going to be recovering any time soon. As and when that does happen, I think it's going to be really interesting because everything we're hearing is that the consumer wallet is going to be under pressure. We're hearing about inflation. We're hearing about interest rate rises.
They will have come through a winter when, whilst protected by the price cap, essentially if you have been moved, you've been moved onto a provider that wouldn't have been your first choice, and potentially your energy costs are suppressed by a price cap, which will be going up by a significant amount. What I'm trying to say there is the consumer will be very focused on the price they're paying for energy. We fully anticipate the competitive market will come back. We fully anticipate that we will be well set up to actually begin to support the customer in what we do best, which is help them to save money, and we anticipate that they're going to be wanting to do that in significant volumes as and when deals come back onto the market.
Scilla, do you want to pick up anything else you want to say on top of that for energy, but also how we're going to do disclosure and reporting?
Sure. I think nothing further to build from energy. In terms of reporting, Malcolm, it'll be a separate segment and you'll get the same level of disclosure as we've got the new disclosure in relation to profit contribution.
Great. Any more questions, operator?
No, there are no further questions on the queue now.
Okay. Well, listen, thank you very much, everybody, for your time. As I say, it was unscheduled, so we're very grateful for you making a space in your diaries for us. We look forward to catching up with you very shortly. With that, we will end the call. Thanks very much, everyone.
Thank you. That concludes our conference for today. You may all disconnect. Thank you all for participating.