Mony Group Plc · LSE:MONY
Mony — Moneysupermarket Group — FY2023 Earnings Presentation
33 slides from Mony's earnings presentation, Feb 19, 2024
Slide 1: Preliminary results
Preliminary results 19 February 2024 [CLASSIFICATION: CONFIDENTIAL]
Slide 2: Peter Duffy, CEO
Peter Duffy CEO
Slide 3: Strong trading and strategic execution
Strong trading and strategic execution • Achieved record revenue of £432m; up 11%; exceptional trading in Insurance, winning market share • Maintained gross margins as expected; grew EBITDA, up 14% • Helped households save an incredible £2.7bn*, up from £1.8bn in 2022 • Data transformation complete;
Slide 4: Niall McBride, CFO
Niall McBride CFO
Slide 5: Financial highlights: saved households an estimated £2.7bn in 2023
Financial highlights: saved households an estimated £2.7bn in 2023 Revenue EBITDA* Adjusted basic EPS £432m £132m 16.0p +11% +14% +12% Reinvestment rate Operating cashflow Dividend per share 12% £102m 12.1p -9% -2% +3% * In both the current and prior year there were no adjusting items within EBITDA.
Slide 6: Insurance: exceptional growth in buoyant switching market
Insurance: exceptional growth in buoyant switching market Market context Paid premium price inflation +35% • Significant premium price increases1 +34% • Car insurance +35%; rate of increase started to stabilise2 • Home insurance +34%; trend forecasted to continue3 Q1 Q2 Q3 Q4 Car insurance Home insu
Slide 7: Money: strong performance in banking; interest rates hit borrowing
Money: strong performance in banking; interest rates hit borrowing Market context Base rates at 15-year high BoE Base Rate BoE Consumer Credit absolute growth rate • Bank of England held base rates at 5.25%; 15-year high, % 6 10 % following 14 consecutive increases from December 2021 5 8 4 • Consume
Slide 8: Home Services: subdued markets; no material energy revenue as expected
Home Services: subdued markets; no material energy revenue as expected Energy market context Energy price cap forecasts¹ • Wholesale energy prices reduced, still volatile; market subdued • Gap between the Energy Price Cap and Energy Price Guarantee remained slim throughout the second half of the yea
Slide 9: Travel and Cashback
Travel and Cashback Travel FY23 performance Travel performance summary • Strong growth in Travel, revenue up 33% £21m • Growth underpinned by strong demand for package holidays 5% • Invested in new TV advert for TravelSupermarket and upgraded tech platform +33% Revenue % of Group revenue Cashback FY
Slide 10: EBITDA growth ahead of gross profit; underlying costs controlled
EBITDA growth ahead of gross profit; underlying costs controlled Profit and operating costs Operating cost base • Gross profit up 11%; gross margins maintained – Gains in Insurance and Pay Per Click (‘PPC’) efficiency £174m £195m – Cashback and B2B have dilutive effect on margin • EBITDA* up 14%, ah
Slide 11: Highly cash generative
Highly cash generative Net debt2 £19.8m at 31 December 2023 (2022: £39.0m3) Includes £nil deferred consideration (2022: £9.8m) and loan notes payable to Podium’s non-controlling interest of £1.9m (2022: £1.8m). Operating cash flow £102.2m (£4.1m) £3.0m £131.9m (£28.6m) (£63.4m) (£10.9m) £72.9m (£10.
Slide 12: Outlook and recent trading
Outlook and recent trading • Achieved record revenue, grown EBITDA margins, despite no material revenue from energy switching • First few weeks of 2024 have had similar trends from those seen at the end of Q4 2023 continue • We do not expect any increase in energy switching revenue in 2024 • Expect
Slide 13: Peter Duffy, CEO
Peter Duffy CEO
Slide 14: Helping households save money
Helping households save money 7® Retain e e., and grow oO, Pd Efficient Expanding acquisition 4} | our offer. (7 + Best-in-class digital efficiency * Engaged relationships - helpful * Further channels + Effective marketing prompts and reminders + Wider audiences + Seamless, shorter journeys * Target
Slide 15: 2023 strategic highlights
2023 strategic highlights Data and Dialogue question platform Scalable tech platform • Data work complete • Scalable tech platform advanced and driving benefits • Data centralised, standardised, available real-time • Able to onboard products more simply; can give users more • Dialogue processing c.7
Slide 16: Our future focus
Our future focus Membership-based customer propositions Expanding services to our providers rs Be beers st b pr em m e • MSM SuperSaveClub • Tenancy ddmm ov id ee • MSE app • “Market Boost” er aa gg gg proposit ion • Quidco • B2B yy Lo Lo aa nn le le Le adi h ng data and tec 16
Slide 17: Loyal engaged members: MSM's SuperSaveClub
Loyal engaged members: MSM’s SuperSaveClub • Loyalty and rewards programme to supercharge savings • Trialled in May, launched in September • SuperSaveClub benefits: 1. Promises the best prices (£20 if beaten on price) 2. Rewards for every additional purchase (£5 to £15) 3. Rewards for introducing fr
Slide 18: Loyal engaged members: MoneySavingExpert App
Loyal engaged members: MoneySavingExpert App • Gives access to MSE content and money saving tools • Incorporated MSE Chat GPT; gives autogenerated but personalised answers from trusted MSE content • “MyMSE” powered on Group CRM platform • “Bill Buster” tool helps users slash bills • Tools help users
Slide 19: Loyal engaged members: Quidco
Loyal engaged members: Quidco • Quidco members have more frequent engagement than MSM members • Launched Quidco Compare using MSM scalable tech platform • Migrated Quidco CRM onto our Group platform • Investments made in TV and brand advertising, and a brand refresh supporting member growth momentum
Slide 20: 2023 strategic highlights: Enhanced provider services
2023 strategic highlights Enhanced provider services • Tenancy • Advertising spots for providers to promote products • Revenue up double digits • Extending designated spots beyond results pages • Market Boost • Data services for providers using 1st party data; based on enhanced customer intelligence
Slide 21: Strategic highlights: saved households an estimated £2.7bn in 2023
Strategic highlights: saved households an estimated £2.7bn in 2023 Estimated Group Group marketing MSM and MSE net customer savings margin promoter score £2.7bn 58% 70 2022:£1.8bn 2022:57% 2022:72 MSM and Quidco active MSM & Quidco revenue MSM cross product users per active user enquiry 14.2m £17.82
Slide 22: Significant strategic progress
Significant strategic progress • 2023: record revenue, EBITDA growth, market share won • Data transformation complete; tech platform and marketing infrastructure delivering • Focused on strategy to reduce dependency on paid traffic, unlock re-buy and cross-buy and grow revenue per user Membership-ba
Slide 23: Appendix
A CLUB FOR SUPERSAVERS APPENDIX [CLASSIFICATION: CONFIDENTIAL]
Slide 24: Investment proposition
Investment proposition The result 1. Clear social purpose Helping households save money; estimated £2.7bn saved in 2023 Highly profitable growth EBITDA margin EBITDA growth 2. 2023 31% 2023 14% Scalable tech platform 2022 30% 2022 15% Powering price comparison across the Group, and for our B2B partn
Slide 25: Our Group
Our Group FY23 Revenue: £432m*, up 11% HOME SERVICES TRAVEL INSURANCE MONEY CASHBACK £220m £100m £39m £21m £60m +28% -3% -2% +33% +0% Revenue Revenue Revenue Revenue Revenue 220 103 68 100 21 60 60 172 159 75 16 40 39 4 11 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 %
Slide 26: Capital allocation framework
Capital allocation framework 1. 2. 3. 4. Organic Ordinary Acquisitions Enhanced growth dividends distribution 26
Slide 27: Our purpose and ESG responsibilities
Our purpose and ESG responsibilities Purpose • Our mission is to help UK households save money; £2.7bn household savings delivered in 2023, up from £1.8bn in 2022 • 14.2m active users in 2023 in MoneySuperMarket and Quidco Helping households save money Money Saving Expert • Consumer finance champion
Slide 28: Adjusted cost base and marketing spend
Adjusted cost base and marketing spend Adjusted cost base Marketing spend and margin 57% 58% £314m £165m £182m £287m £14m £12m £15m £12m £48m £34m £44m £29m £70m £64m £44m £39m Other 0% D&A -11% TV & radio 18% VAT & other admin 13% Cashback and rewards 12% Staff costs 10% Online spend
Slide 29: Product engineering investment
Product engineering investment Total product engineering investment Reinvestment rate £50m £50m £40m £41m +13% +12% £10m £9m 2022 2023 2022 2023 • Product engineering capex and operating costs consistent YoY Product engineering capital investment Product engineering operating costs • Expect tech cap
Slide 30: Income statement
Income statement £million 2023 2022 Growth Revenue 432.1 387.6 11% Gross margin 67.7% 67.7% EBITDA* 131.9 115.5 14% EBITDA margin 31% 30% Depreciation (4.2) (4.8) Amortisation of technology related intangible assets (9.3) (10.4) Adjusting items** (21.1) (11.3) Operating profit 97.3 89.0 9% Net finan
Slide 31: Segmental measure of adjusted EBITDA contribution
Segmental measure of adjusted EBITDA contribution FY 2023 Inter-vertical £million Insurance Money Home Services Travel Cashback Shared costs eliminations Total Revenue 220.0 100.2 39.0 20.6 59.8 - (7.5) 432.1 Directly attributable expenses (93.5) (33.7) (12.5) (15.2) (52.1) (100.7) 7.5 (300.2) EBITD
Slide 32: Segmental notes: Measure of EBITDA contribution
Segmental notes: Measure of EBITDA contribution • Results include a measure of segmental profit by vertical in line with IFRS 8 • EBITDA contribution = Revenue – directly attributable cost of sales – directly attributable operating expenses (no adjusting items within EBITDA in either year) Directly
Slide 33: A Club for Supersavers
A CLUB FOR SUPERSAVERS MONEYSUPERMARKET GROUP
Moneysupermarket Group — FY2023 Earnings Presentation on 6ix