HomeServe Spain

Founded more than 15 years ago, our Spanish business has over 700 employees serving the Spanish nation 24/7, 365 days a year.

 2019 stats

Total revenue broadly flat at €159.7m

19% increase in income per customer to €57

Adjusted operating costs fell 1% to €139.9m

Operational performance

As announced last year end, the Endesa partnership in Spain came to an end in May 2018. Acquisition marketing ceased from this date and Endesa was removed from the Spanish household count. As expected total customers therefore reduced in Spain and at the year end were down by 16% to 1.1m.

With a maturing book and fewer Year 1 customers, the retention rate rose by 2 percentage points to 80%, and income per customer increased by 19% to €57: a strong result which underpins the Membership revenue in the short term as the business continues to explore new partnership opportunities.

As well as attempting to unlock another sizeable partnership, the Spanish business is also pursuing opportunities with retail energy providers, water municipals and telcos. The retail energy opportunity looks to exploit the nascent switching market in Spain and although only small volumes so far, the take up rates with a new partner, PODO, have been very encouraging.

The Spain team is also exploring opportunities in the water sector as it looks to agree new partnerships with water municipals.

The Claims business (“Repair network”) continued working with a number of Spain’s largest bancassurers, managing a large volume of claims across multiple trades and is exploring business development opportunities to expand its partnerships further. Jobs continue to be completed by a network of over 1,907 sub contractors and 190 franchisees (FY18: 1,838 subcontractors and 192 franchisees).

The strong retention rate in the Membership business and the continued strength of the Claims business means that HomeServe expects no significant impact on adjusted operating profit through FY21 as it continues to seek new partnerships.

Spain performance metrics

FY18 FY19
Affinity partner households (m) 12
Customers (m) 1.3 1.1
Income Per Customer () 47 57
Policy Retention Rate 78% 80%
Policies (m) 1.5 1.3

Spain performance metrics

FY17 FY18
Affinity partner households (m) 12 12
Customers (m) 2.2 1.3
Income Per Customer () 43 47
Policy Retention Rate 77% 78%
Policies (m) 1.5 1.5