Moonpig reports a significant revenue increase driven by innovation and customer growth.
- The company’s revenue climbed by 3.8% to £158m for the first half of the year.
- A notable 42.5% growth in international markets highlighted the brand’s global appeal.
- Customer engagement soared with Moonpig Plus and Greetz Plus reaching 750,000 members.
- Despite challenges, the company remains optimistic about meeting its revenue targets.
Moonpig has recorded a 3.8% rise in revenue for the first half of the year, reaching £158 million. This growth is attributed largely to robust sales from its main brand, Moonpig, and represents a 10.0% increase year-on-year. Such progress has helped the online retailer sustain positive momentum despite challenges in its Experiences division. Moreover, adjusted EBITDA saw a slight improvement, moving from £41.4 million in the first half of 2024 to £41.8 million, with the margin holding at 26.5%.
However, the company faced a setback as it reported a pre-tax loss of £33.3 million, contrasting with the previous year’s profit of £18.9 million. This downturn is primarily due to a £56.7 million non-cash impairment charge related to the goodwill of its Experiences section. Yet, there was an uplift in the adjusted profit before tax, which increased by 9.0% to £27.3 million, fuelled by enhanced trading and reduced interest expenses.
The online retailer also experienced an expansion in its customer base, which now totals 11.7 million active users across its Moonpig and Greetz platforms. Order volumes increased by 4.7%, while the average order value grew by 2.5%. The international revenue surged significantly, with markets in the US, Australia, and Ireland boosting by 42.5% year-on-year, underscoring the brand’s expanding global footprint.
Technological advancements remain central to Moonpig’s strategy, contributing to remarkable growth in its subscription services, Moonpig Plus and Greetz Plus, which have attracted 750,000 members, a notable increase from 200,000 the previous year. The firm also boasts a burgeoning database of customer occasion reminders, numbering 96 million as of October 2024, indicating heightened customer engagement.
CEO Nickyl Raithatha expressed satisfaction with the company’s continuous revenue growth, attributing success to the increased order volumes supported by long-term investments in technology and innovation, alongside the broader market shift towards online shopping channels. Raithatha highlighted the launch of ‘Your Personalised Handwriting’ feature, marking a strategic use of AI technologies to enhance the card-giving experience. As Moonpig continues to implement its transformation plan for the Experiences division, it maintains an optimistic revenue outlook, targeting double-digit growth and improved profit margins in the medium term.
Moonpig’s commitment to innovation and strategic expansion underscores its positive growth trajectory, despite existing challenges.
