18th Feb 2021 09:34
(Alliance News) - Recent London listing Moonpig Group PLC said Thursday it expects revenue in its current financial year to double from the year before, after the online greeting card seller recorded its strongest ever Valentine's Day holiday performance.
Moonpig said it expects to revenue in the financial year ending April 30 to be about double the GBP173 million recorded the year before. However, because of higher marketing spending and taking on more temporary staff, underlying earnings before interest, tax, depreciation and amortisation margin will be in line with financial 2020.
It also warned that the frequency of customer purchases and rate at which they attach gifts to their card purchases are expected to moderate as lockdown restrictions ease in the UK. As a result, its guidance for financial 2022 is broadly unchanged.
Moonpig said the increased demand that it saw in the first half of its financial year continued through the third quarter, and it had its strongest ever trading week ahead of Valentine's Day, which was this past Sunday.
"Purchase frequency remains unusually elevated due to Covid-19 related restrictions, and we are now also seeing a temporary increase in average order values, as more customers attach gifts to their orders," the company said.
Moonpig debuted on the London Main Market at the start of February with a GBP1.2 billion market capitalisation. It priced its initial public offering at 350 pence per share. The stock was 5.4% on the day Thursday at 451.90p, giving a GBP1.56 billion market cap.
By Tom Waite; [email protected]
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