Half Year 2025 Moonpig Group PLC Earnings Presentation (Q&A) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Alison Lygo - DB Numis - Analyst : I wonder if maybe we could just kick off with a bit of thinking about the revenue bridge for H2. Greetz, I guess if we start there, clear that you're seeing a sequential improvement back to minus 2% on a constant currency basis. I guess from your current point of view, does it feel like it's realistic that we expect that business gets back to positive territory for the full year? Or actually, are we looking at just a sequential improvement getting back to a growth into 2026? And then I suppose just on the -- making sure I'm clear in terms of the phasing of the Experiences business and the COVID voucher cancellation, you guided to a mid-single-digit impact for the full year and GBP3.2 million of that, I think you called out as coming in the first half. So I assume we should be expecting something similar in H2. And then I guess the final part is Moonpig and how we should be thinking about momentum in that business. So obviously, the comp steps up materially into H2. Are you seeing this near term against this backdrop as a consistent double-digit growth business? Or should we be maybe tempering our expectations there? Thank you.

Question: Alison Lygo - DB Numis - Analyst : That's great. Thank you very much. I will get back in the queue.

Question: Andrew Wade - Jefferies - Analyst : Morning, chaps. A couple from me. First one on Moonpig gross margin, more Moonpig brand gross margin. You talked to quite a few factors that are supporting that Moonpig Plus, supply marketing income and so on and so on. Just wondering which has been the most significant in that bridge and what the outlook looking further ahead is? Because I mean, if you think about some of those Moonpig Plus in particular, and the commission on some of those gift categories, which sound like they could be growing, -- it feels like there could be further opportunity on that in outer years. So that's the first one around Moonpig gross margin.

Question: Andrew Wade - Jefferies - Analyst : Cool. That makes sense. Then obviously, looking at the experiences side of the business. I mean, the way you've discussed it in the statement, it sounds like you're talking about it purely as a cyclical effect. But I guess trying to dig a bit below that. Is the business fundamentally what you thought it was? Or are there some other challenges on the impairment? I know it's more symbolic than anything else, but I guess question really, should we be worried about it?

Question: Andrew Wade - Jefferies - Analyst : Great. Thanks very much.

Question: Anubhav Malhotra - Panmure Liberum - Analyst : A couple from me, please. Firstly, do you have plans to move any of the other categories to the agency model, which could benefit gross margin in the future, whether for the Moonpig business? Or -- and I don't know whether it has been tried already in the Greetz business at all? Or is there scope to do that in the Greetz business as well? And the second question, if you could break down the improvement in the performance of the Greetz business in terms of whether it's been driven more by growing the active customer base, getting more new customers in average order value or frequency?

Question: Anubhav Malhotra - Panmure Liberum - Analyst : Thank you so much. That's very helpful.

Question: Georgina Johanan - JP Morgan - Analyst : Just two quick ones for me, please. First of all, just on the great gross margin, I think there was some extra promo activity going in there in the half. Can you maybe just talk a little bit about whether that's the same promotions that you historically have used at different times for the Moonpig brand or if that's something different there, just be good to understand. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 9:30AM, MOONM.L - Half Year 2025 Moonpig Group PLC Earnings Presentation (Q&A) And then also just in terms of the medium-term guidance for a double-digit top line. Is that something that you would anticipate achieving next year? Or is that more something that we should anticipate that you'd be achieving on a one- to three-year view? How should we be thinking about that, please?

Question: Georgina Johanan - JP Morgan - Analyst : Super clear. Thanks so much.

Question: Adam Tomlinson - Berenberg - Analyst : Good morning gents. Can you hear me? Okay. Yeah. Hi, Adam. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 9:30AM, MOONM.L - Half Year 2025 Moonpig Group PLC Earnings Presentation (Q&A) Great, thanks. Quick question for me, please. Just on the -- some of the new growth initiatives, so I'm thinking about Moonpig for work here, the international, which is obviously growing well, but from a lower base. So can you just give an update on your thoughts on those? And I suppose the question is, with your confidence in getting back to double-digit revenue growth a few years out, does that factor in a significant contribution from these new channels?

Question: Adam Tomlinson - Berenberg - Analyst : That's very clear. Thanks a lot.

Question: David Hughes - Shore Capital Markets - Analyst : Hello. Can you hear me? Sorry about that. I was just saying in terms of Moonpig Plus, obviously, you've had success getting up to 750,000 subscribers, I think you mentioned about one in five transactions going with it. Where do you think the target is long term for that? What do you think is a reasonable share to get to versus your customers in terms of subscribers?

Question: David Hughes - Shore Capital Markets - Analyst : That's great. Thanks very much. And just in terms of behavior of subscribers, you talked before about increase in transactions. Are you also seeing that higher attach rate? And particularly in experiences, are you seeing stronger performance there? So can Moonpig Plus be something that helps drive that Experience growth that you're looking for?

Question: David Hughes - Shore Capital Markets - Analyst : Got it very helpful. Thank you.

Question: Charlie Rothbarth - HSBC - Analyst : Morning, Nickyl; morning Andy. I hope you can hear me. Can I just quickly ask about the gifting ranges as you go into your -- into a Christmas period? Are you still seeing that the 10, 15 range is about right, if you had to make any tweaks for that. And then next question is the key -- the experiments that you run on a microcosm of your customer base. What are the next ones that you're looking at? How are you thinking about these? And then final question is, can you just please remind me how the cost base for your international businesses work? Is it still about 10% is onshore and 90% is offshore?

Question: Charlie Rothbarth - HSBC - Analyst : Perfect. Thank you both so much.

Question: Anubhav Malhotra - Panmure Liberum - Analyst : Hi team. Thanks for taking a second question from me. Just on one -- which is a follow-up from an earlier question on Moonpig Plus. Clearly, a very interesting customer base that you have or creating there. You're building there. That would probably be very interesting for your partners as well or something like in the choice category for tailer. Are you testing maybe bringing another tier or at least thinking about bringing another tier to that subscription scheme, which gives people access to maybe a discounted range of gifting as well? Thank you.

Question: Anubhav Malhotra - Panmure Liberum - Analyst : Very clear. Thank you.