Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — H1 2011 Earnings Presentation
37 slides from Mony's earnings presentation, Aug 2, 2011
Slide 1: Interim Results
Interim Results 2 August 2011 Helping every household to make the most of their money
Slide 2: Summary
Summary Gerald Corbett 2 MoneySupermarket (3)
Slide 3: Finance Update
Finance Update Paul Doughty – Chief Financial Officer 3
Slide 4: Summary financial highlights
Summary financial highlights Strong trading results; special dividend of £20m • Strong revenue growth throughout H1 • 24% ahead of H1 2010 • EBITDA 27% ahead of H1 2010 • Significant investment in brand and technology • Offline marketing expenditure (inc Britain’s Got Talent) +£5m (+50%) • Technolog
Slide 5: Strong trading results
Strong trading results Good revenue momentum; EBITDA 27% ahead H1 2011 H1 2010 Variance Variance H2 2010 £m £m £m % £m Revenue 88.7 71.6 17.1 24% 77.3 Internet 88.6 71.6 17.0 24% 77.2 Intermediary 0.1 0.0 0.1 n/a 0.1 Gross Profit 63.4 51.1 12.3 24% 55.0 Gross Margin 71.4% 71.4% 71.2% Administrative
Slide 6: Adjusted EBITDA
Adjusted EBITDA Volume growth, margin consistent; further investment in brand £12.4m (£0.1m) £0.1m (£5.5m) £0.5m £23.0m (£1.6m) (£0.9m) £18.1m Gross Profit Cost Base (£7.4m) £12.3m H1 2010 Volume Gross Dist Exp Staff costs Irrec VAT Other Germany H1 2011 Margin Admin 6
Slide 7: Direct to site share of revenues maintained
Direct to site share of revenues maintained DTS Revenues up by more than £10m: revenues ahead by 24% Revenue by source UK internet revenue by vertical 100% 12 11 £m 7.6 Travel 22 3.7 22 8.6 7.5 Home 2.6 Services/Other 18.4 5.5 Partners Money - non credit 15.2 SEM 67 Money - credit 66 DTS 50.3 40.6 I
Slide 8: Insurance – H1 2011
Insurance – H1 2011 Strong revenue growth; Home fastest growing channel • Revenue increased 24% against H1 2010 – Home Insurance fastest growing channel but good growth also in Motor and Travel • Visitors increased 15% against H1 2010 • RPV increased against H1 2010 – Better site functionality impro
Slide 9: Money – H1 2011
Money – H1 2011 Strong growth across Money portfolio • Revenue increased 31% against H1 2010 – Strong growth in credit and non credit products • Savings fastest growing channel • Visitors increased 4% against H1 2010 – Flat Q1 – Q2 growth from minor channels • RPV increased 26% against H1 2010 – Imp
Slide 10: Home Services – H1 2011
Home Services – H1 2011 Utilities revenues driving growth • Revenue increased 38% over H1 2010 – Utilities revenues stronger in Q2 • Visitor growth of 8% – Utilities and Shopping & Vouchers H1 2011 H1 2010 Variance Variance % H2 2010 Home Services Visitors ('m) 11.7 10.9 0.8 8% 13.1 Transactions ('m
Slide 11: Travel – H1 2011
Travel – H1 2011 Revenues flat against a tough economic backdrop • Revenue broadly flat on H1 2010 – Growth in package holidays • Difficult market conditions • Visitor numbers 16% up on last year – Q1 ad campaign H1 2011 H1 2010 Variance Variance % H2 2010 Travel Visitors ('m) 23.2 20.0 3.2 16% 17.9
Slide 12: H1 Marketing investment
H1 Marketing investment Investment increased consolidated the brand's mainstream position FY 2009 FY 2010 H1 2010 H1 2011 £m % £m % £m % £m % Online 42.4 73% 43.2 69% 20.5 67% 25.5 62% Offline 15.6 27% 19.0 31% 10.1 33% 15.3 38% Total 58.0 62.2 30.6 40.8 Visitors (m) 120.5 119.2 60.8 67.6 Rev per vi
Slide 13: Cash
Cash Cash generation remains a key strength of the business • Cash balances of £32.2m at 30 June 2011 • £18.8m of cash generated before capex, tax and dividend payments – Over 82% of EBITDA converted to cash • 2010 final dividend of £12.9m paid in May £11.9m £0.9m £0.1m (£5.3m) £2.0m (£1.0m) £9.2m (
Slide 14: Dividends
Dividends Interim dividend increased by 15%; Special dividend of 3.93p Dividend – p/share 2011 2010 2009 Interim 1.5 1.3 1.3 Final 2.53 2.2 Total Dividend Declared 3.83 3.5 Special Dividend 3.93 9.84 TOTAL to date 5.43 3.83 13.34 • Progressive dividend policy • Interim dividend increased by 15% to 1
Slide 15: Business Update
Business Update Peter Plumb – Chief Executive Officer David Osborne – Marketing Director 15
Slide 16: Agenda
Agenda • 2011 H1 Review: delivering our growth strategy • Marketing: building our long-term brand • Priorities & Outlook: H2 focus and trading trends • Questions & Answers 16
Slide 17: Investments and growing market fuel growth
Investments and growing market fuel growth H1 investments focused on Best Shop and Brand • Investment programme for 2011 is on track – Best Shop: new technology platform development and mobile web – Best Product: innovative search tools and deeper provider relationships – Data: database and CRM grow
Slide 18: Best Shop: continued innovation
Best Shop: continued innovation New technology platform facilitates Mobile Motor launch Travel Insurance will launch ...whilst Motor Insurance new technology platform... pioneers mobile development. Travel Insurance Mobile Motor 18
Slide 19: Best Product: focus has built deeper provider relationships
Best Product: focus has built deeper provider relationships More exclusive products, best search tools and richer market insights More providers are …smart search is …deeper market launching products with pioneering pre-approved insights are shared with MSM… cards… providers. Exclusive market leadin
Slide 20: We continue to lead our industry
We continue to lead our industry 27% revenue growth indicates strong H1 market growth Hitwise Share of MoneySupermarket.com visitors 20
Slide 21: Marketing Update
Marketing Update • Our marketing model • Progress and recent achievements • Brand strength and competitive advantage 21
Slide 22: £40.8m invested in H1 media
£40.8m invested in H1 media Like an iceberg, what you see on TV is less than 40% of media budget £15.3m spent offline • TV/radio advertising £25.5m spent online • Paid search (SEM) and biddable media • Online partnerships 22
Slide 23: In natural search, No1 on popular keywords
In natural search, No1 on popular keywords Invested in great people, automated systems and relevant content Money Insurance Other Keyword Position Position Keyword Position Position Keyword Position Position Now Mar 2010 Now Mar 2010 Now Mar 2010 credit cards 1 1 car insurance 1 1 restaurant 2 9 vou
Slide 24: In paid search, building depth and breadth
In paid search, building depth and breadth Every day, we trade over 7million keywords Building depth by mining Building breadth by trialling more keywords new platforms From To 24
Slide 25: 40% CRM revenue growth
40% CRM revenue growth Strategic focus is on renewals and cross sell 2009: Basic motor 2010: Intelligent 2011: Personalised x- renewal notification renewals on motor sell energy & home 25
Slide 26: Category media spend continues to rise
Category media spend continues to rise Despite rise in spend, marketing efficiencies (MPV) in line with last year 33% Margin Per Visitor 26% 33% 19% 65p H1 2009 22% 26% 33% 19% 31% 25% 21% H1 2010 23% 31% 25% 21% 73p (H1 68p) 25% 27% 23% H1 2011 25% 25% 27% 23% 70p MoneySupermarket Go Compare Confus
Slide 27: New advertising – 'You're so MoneySupermarket'
New advertising – ‘You’re so MoneySupermarket’ Branding that winning feeling you get when you save money 27
Slide 28: Looking forward, brand strong and well positioned
Looking forward, brand strong and well positioned More visitors, more trusted and more familiar than competition Bigger than competitors More trusted More familiar 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% MS GC CTM CF 1 Q. Think about different websites that can help you find the best deals or save Q W
Slide 29: Priorities for H2
Priorities for H2 Keep investing for growth • Best Shop – Finalise technology platform and launch new Travel Insurance site – Pioneer Mobile aggregation with Motor Insurance – Consolidate Money leadership through new Loans site launch and FSN build out • Best Product – Use scale to secure more marke
Slide 30: Outlook
Outlook July trading in line with Board’s expectations • Internet revenues: July approx + 15% growth – MoneySupermarket.com • Good market growth – TravelSupermarket.com • Tough trading environment • Providers – Strong product pipeline for H2 • Profitability – Investment to continue in technology – B
Slide 31: Questions & Answers
Questions & Answers 34 MoneySupermarket (3)
Slide 32: Appendix Additional Financial Materials
Moneysupermarket.com Group Plc Appendix Additional Financial Materials 32
Slide 33: Adjusted EBITDA
Adjusted EBITDA Reconciliation from stat. revenue and operating profit to adjusted EBITDA H1 H1 H2 FY 2011 2010 Var. Var.% 2010 Var. Var.% 2010 Revenues Internet 91.6 71.6 20.0 28% 77.3 14.3 18% 148.9 Intermediary 0.1 0.0 0.1 n/a 0.0 0.0 392% 0.0 Total 91.7 71.6 20.1 28% 77.3 14.3 19% 148.9 Gross Pr
Slide 34: VAT
VAT • A number of the group’s services are on the borderline of being a marketing service or an intermediary service • Marketing service – standard rated for VAT purposes • Intermediary service – exempt rated for VAT purposes • HMRC raised an assessment on the Group’s PAA leads business for £2.2m in
Slide 35: Adjusted cost base
Adjusted cost base H1 2011 v H1 2010, H2 2010 H1 2011 H1 2010 H2 2010 £m £m Variance Variance % £m Variance Staff Costs 13.3 12.6 0.7 6% 12.5 6% IT Contractors* 0.0 1.2 -1.2 -100% 0.7 -100% Depreciation 2.0 2.4 -0.4 -18% 2.5 -22% Irrecoverable VAT 4.7 3.1 1.6 50% 3.9 21% Other Admin 5.5 4.6 0.9 19%
Slide 36: KPIs – by vertical
KPIs – by vertical H1 H1 H2 2011 2010 Var 2010 Var Money Visitors ('m) 18.1 17.3 4% 14.5 24% Transactions ('m) 9.4 6.5 43% 7.1 32% Revenue (£m) - Click-based 24.8 17.9 38% 21.3 16% Revenue (£m) - Total 27.0 20.7 31% 23.3 16% RPV £1.50 £1.19 26% £1.61 (7)% RPT £2.65 £2.74 (3)% £3.01 (12)% Insurance V
Slide 37: KPIs - Group
KPIs - Group H1 2011 H1 2010 Variance % H2 2010 Variance % Visitors ('m) 67.6 60.8 11% 58.4 16% Transactions ('m) 34.8 29.6 18% 27.7 26% Click Revenue (£m) 81.8 64.8 26% 72.1 13% Other Revenue (£m) 6.8 6.7 1% 5.3 30% Total Revenue (£m) 88.6 71.6 24% 77.3 15% RPV £1.31 £1.18 11% £1.32 -1% RPT £2.35 £
Moneysupermarket.com Group — H1 2011 Earnings Presentation on 6ix