Mony Group Plc · LSE:MONY
Mony — Moneysupermarket Group — H1 2015 Earnings Presentation
31 slides from Mony's earnings presentation, Jul 30, 2015
Slide 1: Interim Results
Interim Results 30 July 2015 Moneysupermarket Group
Slide 2: Matthew Price, Chief Financial Officer
Matthew Price Chief Financial Officer
Slide 3: Trading strongly & investing in technology
Trading strongly & investing in technology Revenue Adjusted Operating Profit EPS (adjusted) £144M £51M 7.3p 18% 28% 30% Capital Investment Interim Dividend Net Cash £8M 2.55p £23M +£2M 10% +£44M 3
Slide 4: Growing our customer base and their satisfaction
Growing our customer base and their satisfaction BEST SITE EARN CUSTOMER PREFERRED Be the easiest way LOYALTY PARTNER for customers to Be the destination Be the best way for find providers and brand for users and providers to acquire products customers customers 17.3M (+18%) 24.2M (+5%) 794 (+3%) Ad
Slide 5: All Group businesses are growing
All Group businesses are growing Revenues HY 2015 HY 2014 HY Growth £M £M £M % Insurance 73.6 68.1 8% Money 35.5 29.5 20% Home Services 17.6 9.1 93% MoneySuperMarket.com 126.7 106.7 19% TravelSupermarket.com 13.7 12.4 10% MoneySavingExpert.com 14.6 11.3 29% Intra-group eliminations and other income
Slide 6: Share gains in all our key markets
Share gains in all our key markets Market dynamics 2014 Motor, home & travel Cards and Loans Energy travel Insurance Number CAGR Number CAGR Number CAGR 2010-2014 2010-2014 2010-2014 Total Market – no of products switching & new 71M -2% 38M -1% 31M -0% Online Market 23M +3% 4M +11% 1.4M +4% Moneysup
Slide 7: Group marketing spend delivering direct visitors
Group marketing spend delivering direct visitors Marketing Spend Revenue By Source 120 £M HY HY HY 2015 2014 % 100 2 4 14 19 80 Partners Offline Spend 15.7 16.0 -2% Online Spend 29.0 28.1 3% 60 Search Engine Marketing Other 3.4 2.4 42% 40 77 84 Direct to site 20 Total Spend 48.1 46.5 Marketing Margi
Slide 8: Revenue growth converted strongly to profit
Revenue growth converted strongly to profit £millions HY 2015 HY 2014 Growth Revenue 143.9 122.4 18% Gross margin % 80% 77% Adjusted EBITDA 56.0 43.6 +28% EBITDA margin % 39% 36% Depreciation & Software Amortisation (5.2) (3.8) Adjusted Operating Profit 50.8 39.8 +28% Adjusted Operating Profit margi
Slide 9: Group increased net cash after paying the dividend
Group increased net cash after paying the dividend £50M revolving debt facility; as at 30th June 2015, the Group had no drawn down balance on the loan. 9
Slide 10: Continuing investment in technology
Continuing investment in technology £8m Other capital investment TravelSupermarket.com Customer data asset MoneySuperMarket.com platform and journey Half year Full year technology investment estimated at £20m 10
Slide 11: We have clear priorities for the use of capital
We have clear priorities for the use of capital 1 Organic growth “Low risk & brings operational Hurdle rate of 18% on leverage. Investment focused technology investment. on smartphones and data.” 2 Ordinary dividends “Progressive ordinary dividend.” Target full year dividend cover 1.5 - 2.0. 3 A
Slide 12: Cash and capital outlook
Cash and capital outlook Deferred consideration for MoneySavingExpert acquisition is due in September 2015. This payment is up to £27M and is based on performance against non financial targets. The interim accounts are based on an expected payment of £22.0M. Up to half the payment can be settled w
Slide 13: Peter Plumb, Chief Executive Officer
Peter Plumb Chief Executive Officer
Slide 14: Summary: 2015
Summary: 2015 Helping more people make the most of their money Business Summary: • MoneySuperMarket: +19% driven by Money. • TravelSupermarket: +10% driven by Holidays. • MoneySavingExpert: +29% driven by Energy and Money. Regulatory Update • OFGEM: Request for information. • FCA: Motor Insuranc
Slide 15: Group strategy
Group strategy Summary: 2015 Investment Helping plan more fully make people aligned the most of their money Business Summary: Buyers for H1 3.1M • MoneySuperMarket: +19% driven by Money. • TravelSupermarket: +10% driven by Holidays. • MoneySavingExpert: +29% driven by Energy and Money. Regulator
Slide 16: MoneySuperMarket.com
MoneySuperMarket.com Data sharing between devices, touch points and mobile apps Reset powering MyProfile MyProfile Home Insurance OnTrees Sign-in MoreMoney Sign-in MORE MONEY APP 16
Slide 17: TravelSupermarket.com
TravelSupermarket.com Reset powering new site with pioneering functionality Reset powering MySuitcase new TSM site Personalisation engine 17
Slide 18: MoneySavingExpert.com
MoneySavingExpert.com Innovating new ways to help users hunt down better deals Mobile optimised Energy Club Collective guides/content +1.6M active members Broadband Switch 18
Slide 19: Core market trends
Core market trends Great deals for switching customers Motor Insurance Premium (Mean Price Quoted) Credit Card 0% Balance Transfer Periods Annual Average Insurance Premium (£) Months £1,200 38 36 £1,100 34 32 30 £1,000 28 26 £900 24 22 £800 20 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015
Slide 20: Outlook: 2015
Outlook: 2015 Trading Group: Good trading performance. Markets Insurance: Motor premiums showing slight inflation. Money: Strong credit card and current account markets. Energy: Prices continue to fall for consumers. Investments Technology programme on track. Branding: new campaigns in H
Slide 21: Appendix
Appendix Moneysupermarket Group
Slide 22: User Figures
Group brands connect with UK Adults Google Monthly Unique Visitors Monthly Unique Users 16000000 14000000 12000000 User Figures 10000000 8000000 MSM TSM 6000000 MSE 4000000 2000000 0 Source: Internal Google 22 Analytics
Slide 23: Adjusted Operating Profit
Adjusted Operating Profit £millions HY 2015 HY 2014 Variance Variance % Revenue 143.9 122.4 21.5 18% Gross Profit 114.9 94.4 20.5 22% Gross Margin 80% 77% Administrative Costs (57.4) (52.2) (5.2) 10% Distribution Costs (19.2) (18.4) (0.8) 4% Operating Profit 38.3 23.7 14.6 62% Amortisation of acquis
Slide 24: Adjusted cost base
Adjusted cost base £millions HY 2015 HY 2014 Variance Variance % Staff costs 25.1 19.5 5.6 29% Depreciation 1.4 2.0 -0.6 -30% Amortisation of technology 3.8 1.8 2.0 111% Irrecoverable VAT 4.5 4.5 0.0 0% Other admin 10.2 8.3 1.9 23% Total Adjusted Admin 45.0 36.1 8.9 25% Advertising 15.7 16.0 -0.3 -2
Slide 25: Earnings per share calculation
Earnings per share calculation £millions HY 2015 HY 2014 Statutory Profit Before Tax 37.8 26.4 Amortisation of MSFG intangibles 6.6 11.2 Amortisation of MSE intangibles 0.8 0.9 MSE contingent payable 5.0 4.0 Profit on disposal of associate - (3.8) Adjusted ‘Before Tax’ Earnings 50.3 38.7 Assumed tax
Slide 26: Dividends, EPS & Dividend Cover
Dividends, EPS & Dividend Cover Dividend (pence) 2015 2014 Interim 2.55 2.31 + 10% Ratios HY 2015 HY 2014 Earnings Per Share 5.5 3.9 Dividend Cover (interim dividend) 2.2 1.7 Dates for Interim dividend –13th August ex-div date, and 11th September payment date 26
Slide 27: Statutory balance sheet
Statutory balance sheet £millions 30 June 2015 30 June 2014 Intangible assets 163.3 168.1 Other non-current assets 8.9 10.8 Net current (liabilities)/assets (15.1) 31.3 Long-term liabilities (8.1) (83.5) Net assets 149.0 126.7 • Intangible assets include £55M of goodwill and £26M of other intangible
Slide 28: Effective tax rate stable
Effective tax rate stable £millions HY 2015 HY 2014 Profit for the half year 37.8 26.4 Standard rate of tax 20.25% (2014: 21.5%) 7.6 5.7 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 redu
Slide 29: Historic KPI's
Historic KPI’s Visitor and clicker information £millions H1 2015 H1 2014 Variance Variance H2 2014 % Insurance Visitors 21.5 18.2 3.3 18% 18.0 Insurance transactions (‘’clicks’’) 7.5 8.2 (0.7) -9% 8.0 Insurance Click Based revenue (£) 61.7 58.9 2.8 5% 59.5 Insurance Other revenue (£) 11.9 9.2 2.7 29
Slide 30: TravelSupermarket.com 2014
TravelSupermarket.com 2014 Investing for growth Revenues +10% against last year • TravelSupermarket.com focused on the next technology release and have deliberately reduced its marketing activity. £millions Variance H1 2015 H1 2014 Variance H2 2014 % Visitors 33.2 34.0 (0.8) -2% 30.1 Clicks (previou
Slide 31: Disclaimer
Disclaimer This document includes statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Group to be materially different from any f
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