Moonpig has recorded a noteworthy rise in revenue for the first half of the year, showcasing growth despite challenges.
- The company reported a 3.8% increase, bringing revenue to £158m, driven primarily by its core brand.
- International markets, including the US, Australia, and Ireland, experienced a significant 42.5% growth year-on-year.
- Moonpig continues to innovate, with a focus on technology and customer-focused subscription services.
- Despite facing a pre-tax loss due to a goodwill impairment, Moonpig remains optimistic about future growth prospects.
Moonpig, the online retailer renowned for its personalised cards and gifts, has reported a 3.8% rise in revenue for the first half of the year, totaling £158 million. This increase is attributed primarily to robust sales at the Moonpig brand, which saw a 10% year-on-year growth. Despite ongoing challenges in its ‘Experiences’ division, the company’s overall momentum remains positive.
Adjusted EBITDA, the measure of a company’s overall financial performance, saw a slight increase to £41.8 million from £41.4 million in the first half of 2024, maintaining an adjusted EBITDA margin of 26.5%. However, Moonpig faced a setback with a pre-tax loss of £33.3 million, transitioning from a £18.9 million profit the previous year due to a £56.7 million non-cash impairment charge related to the Experiences goodwill.
The company’s active customer base has expanded significantly, reaching 11.7 million across both Moonpig and Greetz, while total orders rose by 4.7%. There was also a 2.5% increase in the average order value.
International revenue has demonstrated remarkable growth, with markets such as the US, Australia, and Ireland experiencing a 42.5% year-on-year increase. This expansion highlights Moonpig’s successful penetration into global markets.
Emphasising technology and customer engagement, Moonpig’s innovation efforts are visible through the growth of its subscription services, Moonpig Plus and Greetz Plus, now boasting 750,000 members, up from 200,000 last year. The company’s expanding database of occasion reminders has also seen significant growth, now standing at 96 million, up from 82 million the previous year.
CEO Nickyl Raithatha expressed satisfaction with the company’s growth trajectory, particularly the double-digit revenue growth of the Moonpig brand. Raithatha credited the performance to strategic investments in technology and innovation, as well as a shift to online markets: ‘Moonpig’s performance has been underpinned by robust growth in order volumes, powered by our multi-year investments in technology and innovation and the structural market shift to online.’
Looking ahead, Raithatha conveyed confidence in the company’s ability to meet full-year revenue targets: ‘Raising our medium-term profit margin target demonstrates our confidence in the outlook for the business.’ Innovatively, Moonpig has launched AI-driven features such as ‘Your Personalised Handwriting’, which enables customers to add their own handwriting to cards. Raithatha noted: ‘This launch is a key step in our roadmap of innovative features, leveraging emerging AI technologies to enhance the card-giving experience.’
Despite macroeconomic hurdles, Moonpig is committed to advancing its transformation plan for the Experiences division, albeit with a revised timeline for achieving the division’s growth potential.
Moonpig’s strategic focus on technology and innovation positions it well for sustained growth in an increasingly competitive market.
