Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — H1 2007 Earnings Presentation
31 slides from Mony's earnings presentation, Sep 19, 2007
Slide 1: Moneysupermarket.com Group PLC Interim Results Presentation
STRICTLY PRIVATE & CONFIDENTIAL Moneysupermarket.com Group PLC Interim Results Presentation 19 September 2007
Slide 2: Agenda
Agenda Overview: Gerald Corbett Financial Review: Paul Doughty Business Review: Simon Nixon Questions and Answers: Moneysupermarket.com 2
Slide 3: Overview
Overview Results confirm the investment case Strong revenue and profit growth underpinned by large increases in: Visitors Transactions Revenue Per Visitor Significant improvements in brand recognition and product development programme Life as a public company has begun well Governance
Slide 4: Paul Doughty, Financial Review
STRICTLY PRIVATE & CONFIDENTIAL Paul Doughty Chief Financial Officer Financial Review
Slide 5: Pro Forma Profit & Loss Account
Pro Forma Profit & Loss Account MSFG acquired by Moneysupermarket.com Group (“MSM”) on 22 June 2007 9 days’ trading for statutory entity to 30 June 2007 Pro forma results prepared showing what the financial results would have been had MSM acquired MSFG on 1 January 2006 on a debt free basis
Slide 6: Pro Forma Profit & Loss Account
Pro Forma Profit & Loss Account H1 07 Proforma H1 06 Comp Growth £m £m Revenue 78.5 48.2 63% Internet 73.5 42.7 72% Intermediary 4.9 5.5 (10%) Gross Profit 52.1 28.0 86% Gross Margin 66% 58% Other Income – 0.2 (100%) Adjusted Administrative Costs (16.5) (10.5) 57% Amortisation of Intangibles (
Slide 7: Diversification Continues…
Diversification Continues… H1 2006 Internet Revenues H1 2007 Internet Revenues (revenues in £m) (revenues in £m) Home Services / Other Travel £2.4m 34% Home Services / Other £7.5m Travel £0.7m 3% £3.5m 8% 2% 10% 56% Money Money 52% 34% £24.0m £38.3m Insurance £14.5m 34% Insurance £25.3m Source: Comp
Slide 8: …and Direct Revenues Increase
…and Direct Revenues Increase June 2006 Revenue Share June 2007 Revenue Share Partners Partners 22% 17% Direct (incl. SEO) 46% SEM Direct (incl. SEO) 24% 59% SEM 32% Moneysupermarket.com brand increasingly valuable Higher gross margin direct-to-site revenues Increased online brand recognition
Slide 9: Accounting Information
Accounting Information Goodwill and Intangibles Arising From Acquisition of Duncan Cameron Shares £127.2m of goodwill Impairment review at least annually £207.2m of intangibles Annual charge £25.2m for first three years, with £12.6m recognised in H1 pro forma financials IPO & Costs of Transa
Slide 10: Accounting Information (cont’d)
Accounting Information (cont’d) Share Option Charges 13.6m unapproved options which vest 2008 – 2010 with exercise price of 6p Black Scholes Model Expected statutory charge for pre IPO options in issue: 2007 2008 2009 2010 Charge (£m) 3.4 4.7 1.9 0.6 No charge included in Proforma Profit & L
Slide 11: Pro Forma Balance Sheet
Pro Forma Balance Sheet H1 07 H1 07 IPO Proforma Statutory Net for MSM Group Proceeds IPO £m £m £m Fixed assets 341.1 – 341.1 Net current assets / (liabilities) (138.4) 164.0 25.6 Long-term liabilities (62.0) – (62.0) Net Assets 140.7 164.0 304.7 Capital and Reserves 140.7 164.0 304.7 Loan facilit
Slide 12: Financial Highlights
Financial Highlights Strong momentum continues, with revenue increased 63% from £48.1m to £78.5m Internet revenue up 72% on 2006 and now 93% of turnover Gross margins increased significantly from 58% to 66% Increased contribution of Internet business Increased proportion of direct-to-site
Slide 13: Simon Nixon, Business Review
STRICTLY PRIVATE & CONFIDENTIAL Simon Nixon Chief Executive Officer Business Review
Slide 14: The Moneysupermarket.com Vision
The Moneysupermarket.com Vision To be the market leading online product comparison community Provide online comparison of every product Provide online comparison of every market Provide comparison services not only on price but also on other criteria helpful to consumers Build innovative use
Slide 15: Powerful Proposition for both Consumers and Product Providers
Powerful Proposition for both Consumers and Product Providers “Which is the cheapest product?” “How do I target ready-to-buy consumers?” “Which is the most suitable product for me?” “How do I lower my customer acquisition cost?” “Where can I apply for it?” “How do I reach large numbers of consumers?
Slide 16: Leading Online Position
Leading Online Position #1 Finance price comparison website Leading Travel price comparison website Leading market position maintained in rapidly expanding market New entrants achieving small market share through significant TV advertising expenditure Note: The above report is a custom defin
Slide 17: Momentum Maintained Across Verticals
Momentum Maintained Across Verticals Revenues by Vertical 2004-2006(a) Revenues by Vertical H1 06 & H1 07(a) 52.6 38.3 41.3 37.0 25.3 31.0 24.0 14.5 16.0 7.5 7.5 5.1 3.5 3.2 2.3 1.9 0.3 0.7 - 0.4 H1 06 H1 07 2004 2005 2006 Money Insurance Travel Home Services Money Insurance Travel Home Services Sou
Slide 18: First Half Highlights
First Half Highlights Successful IPO Listed 31 July 2007 £368m equity raised; £180m primary to refinance Duncan Cameron transaction and associated costs Internet business highlights Strong momentum continues 58% increase in Internet Visitors (a,b) 61% increase in Internet Transactions (a)
Slide 19: First Half Highlights – Money
First Half Highlights – Money Revenues grew 60% to £38.3m Investment in improved functionality providing more customised search results Growing consumer confidence in transacting Growth has also been driven by a change in mix to secured lending Significantly improved RPT and RPV 2007 H1 20
Slide 20: First Half Highlights – Insurance
First Half Highlights – Insurance Revenues grew by 74% to £25.3m RPT increased by 5%, and pricing has generally held firm Significantly functionality improvement introduced at end of period 2007 H1 2006 H1 Growth Insurance1 Visitors (m) 10.0 6.9 45% Transactions (m) 6.7 4.2 61% Revenue (£m) -
Slide 21: First Half Highlights – Travel
First Half Highlights – Travel Revenues grew by 114% to £7.5m Growth has been driven by visitor numbers (up 93%) and improved conversion rates Successful marketing User uptake of travel price comparison Product improvements Sales mix Hotels and car hire a greater proportion of revenues
Slide 22: First Half Highlights – Home Services
First Half Highlights – Home Services Launched during 2006 with white label product Revenues up from £0.3m to £2.3m in H1 2007 New channels introduced late 2006 Own household utilities offering Broadband Mobile Phones White label Shopping 2007 H1 2006 H1 Growth (a) Home Services Visito
Slide 23: Strategic Developments
Strategic Developments Continued focus on improving existing products and usability Increased market coverage in verticals Further exclusive products Additional new channels, products and services Continue to build community Continue to invest in brand, sales and marketing engine Advan
Slide 24: Outlook
Outlook No impact of weakening credit markets Momentum continued into Q3 Supported by poor summer weather Consumer trend to online transactions accelerating Successful ongoing TV campaign Benefits of diversification 24
Slide 25: Opportunity
Opportunity Opportunities for Moneysupermarket.com are huge Compelling high-growth markets Internet price comparison market under-penetrated Broadband usage increasing and driving online media consumption Internet capturing increasing share of advertising spend Moneysupermarket.com well
Slide 26: Questions and Answers
STRICTLY PRIVATE & CONFIDENTIAL Questions and Answers
Slide 27: Appendix
STRICTLY PRIVATE & CONFIDENTIAL Appendix
Slide 28: Adjusted EBITDA
Adjusted EBITDA Q1 Q1 Q2 Q2 H1 H1 2007 2006 Var. Var.% 2007 2006 Var. Var.% 2007 2006 Var. Var.% Revenues Internet 37.3 20.8 16.5 79% 36.2 21.9 14.3 65% 73.5 42.7 30.8 72% Intermediary 2.3 2.9 (0.6) (21)% 2.5 2.8 (0.3) -11% 4.9 5.5 (0.6) (11)% Total 39.6 23.7 15.9 67% 38.7 24.7 14.0 57% 78.5 48.2 30
Slide 29: Adjusted Cost Base
Adjusted Cost Base H1 2007 H1 2006 £m % of Revenues % of Costs £m % of Revenues % of Costs (1) Adjusted Cost Base Revenues 78.5 100% 48.2 100% Staff Costs 10.2 13% 39% 6.7 14% 51% Depreciation 0.7 1% 3% 0.5 1% 4% Irrevocable VAT 3.0 4% 11% 1.7 4% 13% Other Admin 2.5 3% 9% 1.4 3% 11% Total Adjusted A
Slide 30: KPIs - Internet
KPIs - Internet 2007 H1 2006 H1 Growth Group Visitors (m) 44.7 28.3 58% Transactions (m) 29.0 18.0 61% Revenue (£m) - Click-based 59.7 33.7 77% Revenue (£m) - Total 73.5 42.7 72% RPV (£) 1.65 1.51 9% RPT (£) 2.06 1.87 10% 30
Slide 31: KPIs – Verticals
KPIs – Verticals Q1 Q2 H1 Q1 Q2 H1 2007 2007 2007 2006 2006 2006 Money Visitors (m) 7.6 6.4 14.0 6.1 5.5 11.6 Transactions (m) 3.1 3.0 6.1 3.0 2.5 5.6 Revenue (£m) - Click-based 14.9 14.1 28.9 8.9 8.5 17.4 Revenue (£m) - Total 19.6 18.7 38.3 11.9 12.1 24.0 RPV £2.59 £2.92 £2.74 £1.95 £2.19 £2.07 RPT
Moneysupermarket.com Group — H1 2007 Earnings Presentation on 6ix