Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — H1 2010 Earnings Presentation
38 slides from Mony's earnings presentation, Aug 4, 2010
Slide 1: Interim Results 2010
Interim Results 2010 Helping every 4 August 2010 household to make the most of their money
Slide 2: Agenda
Agenda Solid start delivering growth in core business verticals • Agenda – Introduction Gerald Corbett – Financial Review Paul Doughty – H1 review : delivering business growth Peter Plumb – Travel : investment plans for Travelsupermarket.com – Priorities & Outlook – Questions 1
Slide 3: Summary
Summary • Top line momentum building – Marketing investment – Site improvements • Business and profits stabilised • Confident about second half 2
Slide 4: 2010 Interim Results: Financial Review
Moneysupermarket.com Group Plc 2010 Interim Results Financial Review Paul Doughty - Chief Financial Officer 4 August 2010 3
Slide 5: Summary financial highlights
Summary financial highlights Six months to 30 June 2010 • Solid revenue growth in Money, Insurance and Home Services • Travel managed for margin in tough market • Significant investments made in brand and product in first half with good results – Gross margin improvements – Broadened brand awareness
Slide 6: Solid trading results
Solid trading results H1 2010 H1 2009 Variance Variance H2 2009 £m £m £m % £m Revenue 71.6 68.5 3.1 4% 68.4 Internet 71.6 67.8 3.8 6% 66.8 Intermediary 0.0 0.7 (0.7) -97% (0.3) Gross Profit 51.1 47.7 3.4 7% 46.5 Gross Margin 71.4% 69.7% 1.7% 68.0% Administrative Costs * (21.6) (19.9) (1.7) 9% (19.9)
Slide 7: Adjusted EBITDA
Adjusted EBITDA Sales and margin increased; investments in product and brand £0.8m £2.1m £0.5m (£0.5m) (£0.8m) £2.0m (£2.2m) (£1.4m) (£1.0m) £18.6m Gross Margin Cost Base (£3.9m) £18.1m £3.4m H1 2009 Volume Gross Margin Provision 2009 Reorg Staff saving 09/10 Share Offline Mkt 3rd Party IT Irrec VAT
Slide 8: Continued growth in direct to site revenues
Continued growth in direct to site revenues Moneysupermarket (Exc Travelsupermarket) revenues grow by 10% Revenue by source UK internet revenue by vertical 100% 100.0% 12 11 7.5 9.5 2.6 Travel 2.4 5.5 22 5.8 26 15.2 Home 12.8 Services/Other Partners Money - other SEM 62 67 DTS 37.1 40.6 Money - cred
Slide 9: Insurance – 30 June 2010
Insurance – 30 June 2010 Solid Revenue Growth; Motor fastest growing channel • Revenues increased 9% against H1 2009 – Growth across Motor, Home and Travel insurance • Visitors increased 4% against H1 2009 – New TV creative launched Jan 10 • RPV increased against H1 2009 but flat against H2 2009 – B
Slide 10: Money - 30 June 2010
Money - 30 June 2010 Trading Improving throughout H1 • Revenue increased 11% H1 2010 v H1 2009 – Availability of credit product stable to improving throughout first half of 2010 • Revenues from credit related products circa 19% ahead despite slightly weaker demand from customers – RPV ‘gains’ of cre
Slide 11: Home Services – 30 June 2010
Home Services – 30 June 2010 Utilities revenues stronger; Visitor Growth from vouchers and shopping • Revenue increased by 9% to £2.6m – Utility switching increased • Visitors increased by 29% to 10.9m – Driven by launch of vouchers channel in November 2009 • Significant change in visitor mix impact
Slide 12: Travel - 30 June 2010
Travel - 30 June 2010 Managed for Margin • Revenue down 20% to £7.5m on H1 2010 – Continued management for margin in a challenging market • Visits to Overseas destinations by UK travellers down 13% (source: ONS June 2010) – Visitor numbers broadly down in line with revenue H1 2010 H1 2009 Variance V
Slide 13: Marketing spend remains efficient
Marketing spend remains efficient Offline marketing a greater proportion of total spend FY 2007 FY 2008 FY 2009 H1 2010 £m % £m % £m % £m % Online 46.1 73% 56.8 75% 42.4 73% 20.5 67% Offline 17.0 27% 19.0 25% 15.6 27% 10.1 33% Total 63.1 75.8 58.0 30.6 Visitors (m) 91.0 120.1 120.5 60.8 Cost per vis
Slide 14: Cash
Cash . Cash conversion remains a key strength of the business • Cash balances of £28.3m at 30 June 2010 • £16.9m of cash generated before capex, tax and dividend payments – 94% of EBITDA converted to cash • Dividend £12.5m £0.5m £0.2m (£1.9m) (£1.8m) £2.4m (£4.3m) £2.7m (£36.2m) £53.8m £28.3m Cash a
Slide 15: Dividends
Dividends Interim dividend maintained Dividend – p/share 2010 2009 2008 Interim 1.3 1.3 1.3 Final 2.2 2.2 Special Dividend 9.84 TOTAL 13.34 3.5 • Dates – Ex Div Date – 18 August 2010 – Payment Date – 17 September 2010 14
Slide 16: 2010 Interim Results: Peter Plumb, CEO
Moneysupermarket.com Group Plc Moneysupermarket.com Group Plc 2010 Interim Results Peter Plumb – Chief Executive Officer 4 August 2010 15
Slide 17: Agenda
Agenda Solid start delivering growth in core business verticals • Agenda – H1 review : delivering business growth – Travel : investment plans for Travelsupermarket.com – Priorities & Outlook – Questions 16
Slide 18: H1 front ended investment programme
H1 front ended investment programme We rebuilt core sites, launched new ad campaign, grew revenues and gross margin • Front ended investment programme – New core sites built supported by third party – skills now transferred internally – ‘Haggle Hero’ campaign launched and now entrenched in customer
Slide 19: Our site investment programme built winners
Our site investment programme built winners We start H2 with new home insurance and savings sites ...and continued … start H2 with We built market leading sites... innovation... more new sites % Customers who prefer Home Insurance moneysupermarket site vs Credit card smart search nearest competitor
Slide 20: Offline campaign broadens to new product areas
Offline campaign broadens to new product areas Marketing strategy has grown DTS visitor share to 67% Home, savings & ...media spend stabilising ... DTS revenue voucher ads launched... through H1... growth achieved Sector Media Spend* £M Revenue by source H1 Moneysupermarket.com 23.6 20.9 12% 11% 18.
Slide 21: We are working more closely with our providers
We are working more closely with our providers Securing exclusive deals for our customers MI self-serve tool for Unique deals for our providers customers 20
Slide 22: We lead this competitive market
We lead this competitive market Better customer targeting has resulted in revenue growth ahead of share Hitwise Share of Moneysupermarket.com visitors 21
Slide 23: Travelsupermarket.com has had a tough 18mths
Travelsupermarket.com has had a tough 18mths -13% fewer people travelled abroad over the past year Trips abroad were -13% yr/yr... ...we managed for margin... …and are now growing profitably UK residents travelling Visitors H1 10 vs H1 09 Hitwise: weekly travel visitors abroad (% TS.com mix change)
Slide 24: Online travel has structural growth potential
Online travel has structural growth potential Online sales could overtake offline sales in 2012 Online direct Online travel agent Online price comparison The Players Flights Hotels Car Hire Holiday Online direct 33% 11% 10% 26% Online travel agent 7% 14% 26% 14% The Online price comparison 7% 1% 4%
Slide 25: Travelsupermarket.com is an H2 development priority
Travelsupermarket.com is an H2 development priority Strong brand and Moneysupermarket customers are high online travel users Travelsupermarket.com brand is ...Moneysupermarket.com customers are recognised and respected... big online travel buyers Travel price comparison sites prompted How people buy
Slide 26: H2 2010 priorities
H2 2010 priorities Apply development learnings across the group portfolio • Travel – Innovate in a tough market – take learning from motor and cards sites • CRM – Continue to innovate customer communication programme – Build out intelligent renewal campaign beyond Motor • Marketing – Grow revenues t
Slide 27: H2 2010 Outlook
H2 2010 Outlook H1 investments should deliver momentum for H2 • Good start to the second half of the year – Trends consistent with H1 – Travel improving • Cost base in second half to be lower than first half – 3rd party development resource • Travel to be funded from existing headcount – Media spend
Slide 28: Questions & Answers
Moneysupermarket.com Group Plc Questions & Answers 27
Slide 29: Appendix A: Additional Financial Materials
Moneysupermarket.com Group Plc Appendix A Additional Financial Materials 28
Slide 30: Adjusted EBITDA
Adjusted EBITDA Reconciliation from operating profit to adjusted EBITDA H1 H1 H2 FY FY 2010 2009 Var. Var.% 2009 Var. Var.% 2009 2008 Revenues Internet 71.6 67.8 3.8 6% 68.2 3.4 5% 136.0 172.5 Intermediary 0.0 0.7 (0.7) (97)% 0.2 (0.2) (90)% 0.9 6.3 Total 71.6 68.5 3.1 5% 68.4 3.2 5% 136.9 178.8 Gro
Slide 31: Adjusted cost base
Adjusted cost base H1 2010 v H1 2009, H2 2009 H1 2010 H1 2009 H2 2009 £m £m Variance Variance % £m Variance Adjusted Cost Base (1) Staff Costs 12.2 13.0 -0.8 -6% 12.4 -2% IT Contractors 1.6 0.2 1.4 709% 1.3 24% Depreciation 2.4 2.0 0.4 20% 2.4 0% Irrecoverable VAT 3.1 2.5 0.6 26% 2.5 26% Other Admin
Slide 32: Adjusted cost base
Adjusted cost base Investments in technology and brand, staff cost savings over H1 2009 £2.1m £0.2m £0.6m £0.4m £1.4m £0.4m (£0.4m) (£0.8m) £55.9m £51.9m H1 2009 Depreciation Third party IT Irrecoverable Other Admin Staff Costs Offline Internet Intermediary H1 2010 resource VAT Marketing Marketing M
Slide 33: Statutory balance sheet
Statutory balance sheet June 2010 December 2009 June 2009 £m £m £m Intangible assets 185.9 198.5 211.1 Other non-current assets 11.6 12.1 13.7 Net current assets 25.2 49.1 68.6 Long term liabilities (35.2) (39.0) (43.4) Net assets 187.4 220.7 250.0 • Intangible assets include £55m of goodwill, and £
Slide 34: Accounting information
Accounting information Share option charges • Pre-IPO – 13.6m unapproved options issued 2007. Remaining options (1.5m) vested Feb 2010. – 0.3m Chairman award issued 2007 vested Feb 2010. – 0.9m SIP awards issued in 2007 vested July 2010 – Black Scholes Model used to calculate charge and then adjuste
Slide 35: Accounting information
Accounting information Share options(cont’d) • Post-IPO – 1.2m LTIPs options issued Dec 2007 which vest in 2010 with an exercise price of nil – 8.3m LTIPs options issued in April 2009 which vest in 2012 with an exercise price of nil – 4.3m LTIP options issued in April 2010 which vest in 2013 with an
Slide 36: Accounting information
Accounting information Tax • Tax charge of £0.9m giving effective rate of 32% – Higher than statutory tax rate of 28% – £0.5m trapped losses in Germany for which no deferred tax credit is recognised, consistent with prior periods 35
Slide 37: KPIs – by vertical
KPIs – by vertical H1 H1 H2 2010 2009 Var 2009 Var Money Visitors ('m) 17.3 19.1 (9)% 16.1 7% Transactions ('m) 6.5 5.8 12% 5.8 12% Revenue (£m) - Click-based 17.9 15.8 14% 17.1 5% Revenue (£m) - Total 20.7 18.6 11% 19.5 6% RPV £1.19 £0.97 23% £1.22 (2)% RPT £2.74 £2.69 2% £2.94 (7)% Insurance Visit
Slide 38: KPIs - Group
KPIs - Group H1 2010 H1 2009 Variance % H2 2009 Variance % Visitors ('m) 60.8 63.6 -4% 56.9 7% Transactions ('m) 29.6 31.6 -6% 27.3 8% Click Revenue (£m) 64.8 60.3 7% 61.2 6% Other Revenue (£m) 6.7 7.3 -8% 6.8 -1% Total Revenue (£m) 71.6 67.6 6% 68.0 5% RPV £1.18 £1.06 11% £1.20 -2% RPT £2.19 £1.91
Moneysupermarket.com Group — H1 2010 Earnings Presentation on 6ix