Slide 1: Interim Results July 2014
Interim Results July 2014 Save money, Fee) qyeat.
Slide 2: Interim Summary
Interim Summary Bruce Carnegie-Brown Chairman
Slide 3: Chairman’s Summary
Chairman’s Summary • Good start to the year • Revenue +9% to £122M • Strengthened Board • Group structure benefiting the individual brands • Brand and capital investment 2014 • Dividends • Interim dividend increased +7% to 2.31p 3
Slide 4: Matthew Price, CFO
Matthew Price CFO
Slide 5: Financial highlights
Financial highlights Strong trading results and continued investment in technology • Strong trading results • Revenue +9% to £122.4M • EBITDA +9% to £43.6M • Continued capital investment to build on our data asset and customer journey • £7.8M spent in H1. Full year expectation is £17M • Underlying p
Slide 6: Sales growth converted well to profits
Sales growth converted well to profits £millions H1 2014 H1 2013 Growth Revenue 122.4 112.3 +9% Gross Profit 94.4 86.7 +9% Gross margin % 77% 77% Adjusted EBITDA 43.6 39.9 +9% EBITDA margin % 36% 36% Depreciation & Amortisation (15.9) (15.2) Adjusting items (note 1) (4.0) (4.7) Operating Profit 23.7
Slide 7: All Group businesses in good growth
All Group businesses in good growth Revenues H1 2014 H1 2013 Growth MoneySuperMarket.com 106.7 100.0 7% TravelSupermarket.com 12.4 9.2 35% MoneySavingExpert.com 11.3 8.8 28% Intra-group eliminations (8.1) (5.9) Other 0.1 0.2 Total Group 122.4 112.3 9% MoneySavingExpert.com profitable growth with H1
Slide 8: MoneySuperMarket.com growing all product verticals
MoneySuperMarket.com growing all product verticals Revenues H1 2014 Q1 Q2 H1 £M growth growth growth Insurance 68.1 1% 7% 4% Money 29.5 4% 8% 6% Home Services 9.1 62% 18% 38% MoneySuperMarket.com 106.7 6% 8% 7% 8
Slide 9: Flexing marketing spend
Flexing marketing spend Three marketing levers to flex – brand spend, CRM, and paid search (“SEM”) Revenue by source Marketing spend 100% 4 4 4 £M H1 2014 H1 2013 22 19 17 Offline 16.0 13.9 spend Partners Online 36.1 31.3 79 SEM spend 74 77 DTS Total 52.1 45.3 spend Marketing 56% 59% 0% H1 2013 Grou
Slide 10: Cash
Cash • Net debt of £21M at 30 June 2014 • £60M revolving debt facility £5.2m £0.7m (£6.4m) (£4.6m) £43.6m (£0.7m) (£7.4m) (£1.5m) (£28.8m) (£21.1m) (£21.0m) Net debt at Adj. Disposal of Share Movement Cash paid Interest Tax Acquisition Dividends Net debt at 31 Dec EBITD A associate option in working
Slide 11: Continued investment in technology
Continued investment in technology Capital investment Depreciation and amortisation £17M £M H1 H1 2014 2013 Other capital investment Depreciation 2.0 1.7 TravelSupermarket.com Software amortisation 1.8 1.1 Customer data asset Amortisation related to MSE 0.9 0.9 acquisition Amortisation related to Gr
Slide 12: Effective tax rate stable
Effective tax rate stable £M H1 2014 FY 2013 Profit for the period 26.4 43.1 Standard rate of tax 21.5% (2013: 23.25%) 5.7 10.0 Effects of: Expenses not deductible for tax purposes 0.1 0.1 Movement on deferred tax assets related to share-based payments 0.1 0.1 Impact on deferred tax of reduction in
Slide 13: Dividends
Dividends Dividend – pence per share 2014 2013 2012 Interim 2.31 2.16 1.80 Final 5.12 3.94 Total Dividend Declared 7.28 5.74 Special Dividend 12.92 TOTAL 20.20 5.74 • Interim dividend increased by 7% to 2.31 pence • Dates for Interim dividend – 13th August ex-div date, and 12th September payment dat
Slide 14: Considerations for H2 and future years
Considerations for H2 and future years Trading considerations • Trading in the first three weeks of July continued the improving trends seen in Q2. • In H2 2013, the Group benefited from an exceptional interest in switching home energy policies, adding approximately £9M to its revenues in H2. The re
Slide 15: Business Update
Business Update Peter Plumb CEO Graham Donoghue CPO
Slide 16: H1 Performance on track
H1 Performance on track Momentum building across all group brands • Group is shaping well, with brands and services prospering • Market health improved through H1 • Insurance – Policy deflation flattening • Money – Credit markets good growth, savings markets slowly returning • Travel – Holiday trave
Slide 17: We play in a very competitive market
10.00% 15.00% 25.00% 30.00% 35.00% 40.00% 45.00% 20.00% 0.00% 5.00% 16/06/2012 30/06/2012 14/07/2012 28/07/2012 11/08/2012 25/08/2012 08/09/2012 22/09/2012 06/10/2012 20/10/2012 Money Expert 03/11/2012 Gocompare.com 17/11/2012 01/12/2012 15/12/2012 MoneySavingExpert.com 29/12/2012 12/01/2013 26/01/2
Slide 18: Customer’s appetite for help is growing
Customer’s appetite for help is growing Group has long term structural growth across core channels *Market size (M Products) **Buying preferences - online PCW experience What is the _first_ word that comes to 68 74% mind when you think of each of the Insurance 70% 70% following? PRICE COMPARISON SIT
Slide 19: Shop
r « » A . Shop Graham Donoghue CPO ;
Slide 20: Investing in the engine & experience
Investing in the engine & experience We continue to build on the work started in TravelSupermarket Building the engine A new experience for insurance Single Engine Single engine powering the brands 20
Slide 21: Moving beyond price
Moving beyond price Current motor results page 21
Slide 22: Josh, your loyalty means a lot to us
Josh, your loyalty means a lot to us. Here’s a thank you. ess | te me | Josh, We've found €) quotes Waite 100 OQ ssors.ae 0 wwe "150 3) a) ssmase 0 ‘smear o Bist 100 @ wen 100 ») uo CED 44 sume £200 2) osu0 GED Insurotte 100 «50000 CED sas. 0 Abit about us ernever charge you penny We werk th every e
Slide 23: Putting customers in control
Putting customers in control Making it easier for customers Making it simple to When & how you Manage your data re-buy want Central account for our 21m customers Replaying what we know about you Responsive design 23
Slide 24: Leading with mobile
Leading with mobile A mobile first approach Mobile web Everyday apps 24
Slide 25: Summary
Summary • Building the engine • New motor site • Putting customers in control of their data • Leading with mobile 25
Slide 26: Outlook
Outlook Trading momentum has continued through July • Group revenues • MoneySupermarket: good growth • MoneySavingExpert: strong growth • TravelSuperMarket: strong growth • Trading trends • Headwinds: • Utility market normalising • 20% rebuy target proving difficult • Tailwinds: • Insurance premiums
Slide 27: Questions & Answers
Questions & Answers Save money, Feel qyeat.
Slide 28: Appendix slides
Appendix slides Money Super Market © Savy money, Feel great. &
Slide 29: Adjusted EBITDA
Adjusted EBITDA £millions H1 2014 H1 2013 Variance Variance % Revenue 122.4 112.3 10.1 9% Gross Profit 94.4 86.7 7.7 9% Gross margin 77% 77% Administrative costs (52.2) (50.6) (1.6) 3% Distribution costs (18.4) (16.1) (2.3) 15% Operating Profit 23.7 20.0 3.7 18% Operating Profit 23.7 20.0 3.7 18% Am
Slide 30: Adjusted cost base
Adjusted cost base £millions H1 2014 H1 2013 Variance Variance % Staff costs 19.5 19.5 - - Depreciation 2.0 1.7 0.3 16% Amortisation of technology 1.8 1.1 0.7 73% Irrecoverable VAT 4.5 4.4 0.1 2% Other admin 8.3 6.8 1.5 22% Total Adjusted Admin 36.1 33.5 2.6 8% Advertising 16.0 13.5 2.5 19% Other Ma
Slide 31: Earnings per share calculation
Earnings per share calculation £millions H1 2014 H1 2013 Statutory Profit Before Tax 26.4 19.8 Amortisation of MSFG intangibles 11.2 11.5 Amortisation of MSE intangibles 0.9 0.9 MSE contingent payable 4.0 4.2 Profit on disposal of associate (3.8) - Corporate finance fees - 0.6 Adjusted ‘Before Tax’
Slide 32: Statutory balance sheet
Statutory balance sheet 31 December £millions 30 June 2014 30 June 2013 2013 Intangible assets 168.1 174.3 185.2 Other non-current assets 10.8 12.5 11.4 Net current assets/liabilities 31.3 27.0 (52.4) Long-term liabilities (83.5) (80.0) (19.7) Net assets 126.7 133.8 124.5 • Intangible assets include
Slide 33: Acquisitions and disposals
Acquisitions and disposals Purchase of OnTrees and disposal of HD Decisions • OnTrees • Purchased trade and assets of OnTrees on 14 March 2014 for £1.5M • Bank account and credit card account aggregation service provider • HD Decisions • Disposed of business on 7 May 2014 to third party • Upfront co
Slide 34: Insurance H1 2014
Insurance H1 2014 Good revenue growth in Q2 • Revenues +4% against last year • Good Q2 revenue growth – our investment in customer experience, in CRM, and in price, together with some improvement in the switching market. • Other revenues £0.8m (10%) ahead of same period last year led by data service
Slide 35: Money H1 2014
Money H1 2014 Significant credit revenue growth • Revenues +6% against last year • Credit revenues 18% ahead driven by credit card growth • Non-credit revenues +4% in H1 - continued impact of Funding for Lending scheme and low interest rates millions H1 2014 H1 2013 Variance Variance % H2 2013 Visit
Slide 36: Home Services H1 2014
Home Services H1 2014 Strong growth in Energy revenues • Revenues +38% against last year • Utility switching volumes increased on both MoneySavingExpert’s Energy Club and on MoneySuperMarket.com where we improved the site and broadened the range of providers millions H1 2014 H1 2013* Variance Varian
Slide 37: TravelSupermarket.com H1 2014
TravelSupermarket.com H1 2014 Strong growth continues • Revenues +35% against last year • Package Holidays, Hotels, Flights and Car Hire growing • Invested in TV support in key sales period around Christmas and again in July • Significant on-going investment in TravelSupermarket.com website millions
Slide 38: KPIs
KPIs millions H1 2014 H1 2013* Variance Variance % H2 2013* Visitors 80.9 77.4 3.5 5% 70.7 Transactions 40.3 35.5 4.8 14% 32.7 Click revenue (£) 107.8 99.0 8.8 9% 99.8 Other revenue (£) 11.3 10.2 0.9 9% 10.3 Total revenue (£) 119.1 109.2 9.9 9% 110.1 RPV £1.47 £1.41 £0.06 4% £1.56 RPT £2.67 £2.79 (£
Slide 39: MoneySuperMarket Visitors
MoneySuperMarket Visitors Comscore and Hitwise Visitor Tracking Exploring Hitwise decline 12,000,000 3,500,000 3,000,000 10,000,000 Comscore Monthly unique visitors Hitwise 'visits' / Google Analytics 2,500,000 8,000,000 2,000,000 6,000,000 1,500,000 4,000,000 1,000,000 2,000,000 500,000 0 0 Jan Feb