Source - Alliance News

Moonpig Group PLC on Tuesday said it is trading in line with expectations, crediting its ‘technology-driven’ offering for sending half-year revenue higher.

The internet-based greetings card company posted year-on-year revenue growth of 6.5% to £152.1million for the six months ended October 31, from £142.8 million a year prior.

Pretax profit more than doubled on-year to £18.9 million from £9.1 million.

‘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 generative business model, leveraging our unique use of data to drive customer loyalty,’ Chief Executive Officer Nickyl Raithatha said.

‘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.’

It did not pay a dividend, unchanged from a year prior.

Looking ahead, the company said: ‘Current trading remains in line with our overall expectations. Consolidated revenue growth in recent weeks has continued the positive trends seen in the first half, underpinned by growth at the Moonpig brand. Whilst the external environment remains challenging, our expectations for full year consolidated revenue and adjusted [earnings before interest, tax, depreciation, and amortisation] remain unchanged.’

Its adjusted Ebitda in the first-half rose 20% to £41.4 million from £34.6 million a year prior.

In June, it predicted yearly revenue will grow at a mid to high single digit percentage rate. It said its adjusted Ebitda margin would stay ‘resilient’.

Moonpig’s share price rose 0.5% to 177.30 pence each in London on Monday morning.

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