Moonpig Group Share Price Rose 3.19% on Its Half-Year Results

The Moonpig Group PLC (LON: MOON) share price rose 3.19% after releasing its first-half results for the six months that ended 31 October 2023. The company’s revenue experienced a year-on-year growth of 6.5%, reaching £152.1 million. When adjusted for acquisitions, the pro forma revenue growth was 2.1%.

The firm’s adjusted EBITDA increased to £41.4 million, reflecting enhanced gross margin rates and disciplined cost control. Adjusted Profit before Taxation reached £20.8 million, driven by improved trading. This was partially offset by higher interest charges and amortisation related to technology platform investments.

The group achieved revenue growth in H1 FY24, driven by the following factors: Moonpig demonstrated strong growth with a year-on-year revenue increase of 4.9%. Moonpig has consistently maintained growth at a mid-single-digit percentage rate in recent months.

Greetz, while experiencing a decrease of 9.8% in revenue year-on-year during H1 FY24, showed signs of improvement in trading throughout the period. Pro forma revenue at Experiences increased by 4.5% despite lower new voucher sales. The segment made progress in line with its strategic goals.

The company has driven revenue growth through continuous technology innovation, introducing new features to enhance order frequency. Moonpig Plus subscriptions have gained traction, leading to higher customer order frequency.

Greetz Plus subscriptions are scheduled for a rollout in the second half of the financial year. Innovative card creativity features, including video and audio messages, stickers, emojis, and AI-driven customised messages, attracted nearly 4 million customers.

The company focused on profitability, strengthening gross margin rates by 4.4% year-on-year, including the benefits of insourcing UK fulfilment.

Nickyl Raithatha, CEO, commented: “We are pleased to report year-on-year growth in both revenue and profit despite the challenging macro-economic environment, marking the Group's return to revenue growth. Our focus on technology is driving this growth, underpinned by our resilient, profitable and cash-generating business model, leveraging our unique use of data to drive customer loyalty. We continue to innovate to attract and retain our loyal customers. During the period, nearly 4 million customers used our innovative card creativity features such as audio and video messages, AI-generated text suggestions, stickers, flexible photos and digital gifting solutions. As the clear online leader in greetings cards, we remain well positioned to benefit from the long-term structural market shift to online.”

Moonpig share price. 

Moonpig Group share price rose 3.19% to trade at 181.4p, from Monday’s closing price of 175.8p.