9th Dec 2021 11:14
(Alliance News) - Moonpig Group PLC shares rose on Thursday as it guided for annual revenue to hit the upper end of its guided range but saw profit plunge in the first half from a year before.
Shares in the online greetings card retailer advanced 5.8% on Thursday morning in London at 378.60 pence each.
In the six months to October 31, Moonpig's pretax profit slumped to GBP18.7 million from GBP33.0 million year before, but was up from GBP9.4 million for the same period in 2019.
Revenue slipped 8.5% to GBP142.6 million from GBP155.9 million year before, but was sharply higher from GBP66.3 million two years ago.
Chief Executive Nickyl Raithatha said: "Moonpig Group continues to successfully deliver against its strategy to become the ultimate gifting companion. Our new technology and data platform continues to make it easier for customers to remember, find, create and send the perfect greeting card and the perfect gift to their loved ones.
"As a result, our half year results demonstrated even stronger customer retention and our highest-ever proportion of revenue from gifting."
Moonpig said it delivered 19.5 million orders in the first half, down from 21.9 million a year ago, but up from 9.5 million two year prior. Average order value increased to GBP7.3 from GBP7.1 year on year.
It noted a "very high retention" of customers acquired during Covid-19, with 89% of year-to-date revenue derived from existing customers.
"With revenue more than doubling over the past two years, we are confident that we have achieved an enduring transformation in the scale of our business. The long-term opportunity remains vast, and we have never been in a better position to capture this growth," Raithatha added.
For financial 2022, revenue is expected to be at the upper end of the previous guidance range of between GBP270 million and GBP285 million.
In the year to this past April 30, Moonpig recorded revenue of GBP368.2 million, meaning an annual fall of at least 23% is expected.
By Paul McGowan; [email protected]
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