Moonpig has shown promising revenue growth in the face of challenges.
- Revenue rose by 3.8%, totalling £158m in the first half of the year.
- International markets contributed significantly with a 42.5% revenue increase.
- Technological innovations and expanded services boost customer engagement.
- Despite a loss before tax, adjusted profits reflect resilient trading.
Moonpig, an online retailer, reported a 3.8% increase in revenue during the first half of the year, reaching a total of £158 million. This growth is primarily attributed to strong sales from its core brand, Moonpig. Remarkably, the company’s revenue grew by 10.0% year-on-year, offsetting the persistent challenges faced within its Experiences division.
The adjusted EBITDA saw a slight increase, reaching £41.8 million from £41.4 million previously, with the EBITDA margin calculated at 26.5%. However, the company reported a loss before tax amounting to £33.3 million, a significant downturn from the prior year’s profit of £18.9 million. This loss is linked to a sizeable £56.7 million non-cash impairment charge concerning the goodwill of its Experiences division.
On a more positive note, the adjusted profit before tax rose by 9.0%, reaching £27.3 million. This improvement is largely driven by growth in trading volumes combined with reduced interest costs. Moonpig’s active customer base, covering both Moonpig and Greetz brands, expanded to reach 11.7 million users, while total orders increased by 4.7%. Additionally, the average order value experienced a modest rise of 2.5%.
International operations showed a remarkable upturn, with key markets in the US, Australia, and Ireland witnessing a revenue increase of 42.5% year-on-year. The growth in these regions underscores the company’s successful expansion and strategic positioning in the global market.
Technological innovations have remained a focal point for Moonpig. Its Moonpig Plus and Greetz Plus subscription services have seen member numbers swell to 750,000, a substantial increase from 200,000 in the previous year. The company’s commitment to technology is further evidenced by its expansion of customer occasion reminders, which surged to 96 million as of October 2024, up from 82 million the previous year.
CEO Nickyl Raithatha expressed satisfaction with the revenue growth, highlighting the robust performance of the Moonpig brand. He attributed the success to the company’s long-term investments in technology and innovation, alongside the market’s ongoing shift towards online retail. Raithatha also emphasised the company’s intention to continue innovating, citing the adoption of personalisation features such as “Your Personalised Handwriting,” which enhances the customer experience by allowing them to add their own handwriting to cards.
Going forward, Moonpig remains focused on executing its transformation plan for the Experiences division, albeit with a revised timeline for achieving its growth potential. The company maintains a positive outlook, aiming for double-digit revenue growth and enhanced EBITDA margins in the medium term.
Moonpig’s strategic focus and technological innovations continue to underpin its growth despite financial setbacks.
