Moonpig Group (MOON) H2 2024 earnings summary

Executive summary

• Achieved strong full-year results with significant acceleration in H2, supported by technology investments, new features, and positive new customer growth for the first time since the pandemic.

• Over 500,000 active Moonpig Plus subscribers; Greetz Plus launched in January 2024.

• Launched creative and AI-driven features, including smart text, audio/video messages, and enhanced search, used over 10 million times to boost customer engagement and lifetime value.

• Integration of Experiences business enabled a compelling same-day gifting proposition and expanded cross-selling with premium brands.

• Strong cash generation and rapid deleveraging, with net leverage reduced to 1.31x.

Financial highlights

• Group revenue increased 6.6% year-over-year to £341.1 million; pro forma growth 4.5% adjusting for Experiences acquisition.

• Adjusted EBITDA rose 13.5% to £95.5 million, with margin up to 28%; adjusted PBT up 5% to £58.2 million.

• Operating cash flow grew 32% to £74.2 million, with operating cash conversion at 78%.

• Net leverage reduced to 1.31x, down from 2.8x two years ago; net debt reduced by £43 million to £125.1 million.

• Gross profit margin increased by 3.3 percentage points to 59.4%, with gross profit up 13% to £203 million.

Outlook and guidance

• FY25 revenue growth expected in the mid- to high-single-digit range, adjusting for non-recurring voucher breakage.

• Medium-term targets: double-digit annual revenue growth, 25%-26% adjusted EBITDA margin, and mid-teens EPS growth.

• FY25 capex expected at 4–5% of revenue; depreciation and amortisation £20–23 million; net finance costs ~£12 million.

• Effective tax rate expected at 25–26% in FY25.

• Continued strong cash generation expected to drive further deleveraging and potential capital returns to shareholders.