Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — H1 2012 Earnings Presentation
35 slides from Mony's earnings presentation, Jul 26, 2012
Slide 1: Interim Results
Interim Results Helping every household to 26 July 2012 make the most of their money
Slide 2: Gerald Corbett - Chairman
Gerald Corbett - Chairman 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; interim dividend increased by 20% • Strong trading results • Revenue 15% ahead to £102.2m • EBITDA 25% ahead to £28.7m • H1 operating margins improved 2% to 28% • Offline marketing (TV, Radio and Print) expenditure flat • Paid Online marketing (SE
Slide 5: Continued revenue growth
Continued revenue growth H1 Operating margins improved to 28% H1 2012 H1 2011 Variance Variance H2 2011 £m £m £m % £m Revenue 102.2 88.7 13.5 15% 89.8 Internet 102.2 88.6 13.6 15% 89.8 Intermediary – 0.1 0.1 n/a – Gross Profit 73.3 63.4 9.9 16% 65.0 Gross Margin 71.7% 71.4% 72.4% Administrative Cost
Slide 6: Adjusted EBITDA
Adjusted EBITDA EBITDA margins improved to 28% £0.3m £9.6m (£2.9m) (£0.0m) (£0.9m) (£0.5m) £28.7m £23.0m Gross Profit +£9.9m Cost Base +£4.3m H1 2011 Volume Margin Staff costs Media Irrec VAT Other admin H1 2012 6
Slide 7: Direct to site share of revenues maintained
Direct to site share of revenues maintained Group and DTS revenues ahead 15% Revenue by source Revenue by vertical £m 100% 10 12 100 7.1 4.0 Travel 24 11.1 7.6 22 80 3.7 8.6 Home 21.1 Services/Other Partners 60 18.4 Money - non SEM credit 40 66 66 DTS Money - credit 58.9 50.3 20 Insurance 0% 0 H1 20
Slide 8: Insurance H1 2012
Insurance H1 2012 Strong and consistent revenue growth • Revenues increased 17% against last year – Growth across major product lines – Visitors 15% ahead – Other revenues £3.5m (89%) ahead of same period last year • Life insurance change of model • Market iQ – (Data) H1 2012 H1 2011 Variance Varian
Slide 9: Money H1 2012
Money H1 2012 Growth in both credit and non credit product revenues • Revenue increased 19% over H1 2011 • Growth in both credit and other banking products – Credit Card revenues flat against declining overall market – Savings and Current Accounts strong performers • Provider budgets and availabilit
Slide 10: Home Services H1 2012
Home Services H1 2012 Revenues flat; Utilities revenues weaker • Revenues flat with first half of last year • Utilities switching market softer given benign domestic energy market conditions • Growth from other areas • Broadband • Mobile • RPV down 16% • Sales mix H1 2012 H1 2011 Variance Variance %
Slide 11: Travel H1 2012
Travel H1 2012 Package Holidays ahead; Hotels and Flights continue to be weak • Revenue down 7% on H1 2011 • Package Holidays and Car Hire growing • Continued weakness in demand for discretionary weekend type travel • Hotels and Flights channels impacted H1 2012 H1 2011 Variance Variance % H2 2011 T
Slide 12: Marketing investment
Marketing investment Offline represents > 1/3 of total spend; Efficiency maintained FY 2010 FY 2011 H1 2011 H1 2012 £m % £m % £m % £m % Online 43.2 69% 50.5 65% 25.5 62% 28.8 66% Offline 19.0 31% 27.0 35% 15.3 38% 15.2 34% Total spend 62.2 77.5 40.8 44.0 Revenue 148.6 177.8 88.5 101.8 Marketing marg
Slide 13: Cash
Cash Cash generation remains a key strength of the business • Cash balances of £36.7m at 30 June 2012 • Over 100% of EBITDA converted to cash • H2 cash considerations – Capex – MSE – VAT £1.1m £0.1m £0.6m £12.6m (£2.7m) (£2.0m) £1.8m (£7.1m) £14.2m (£16.9m) £36.7m £35.0m Cash at Adj. Op. Deprec'n Am
Slide 14: Dividends
Dividends Interim dividend increased by 20% to 1.8p Dividend – p/share 2012 2011 2010 Interim 1.8 1.5 1.3 Final 3.03 2.53 Total Dividend Declared 4.53 3.83 Special Dividend 3.93 TOTAL (p) 8.46 3.83 • Progressive dividend policy • Interim dividend increased by 20% to 1.8p • Total dividend return to s
Slide 15: Summary
Summary • Strong start to the year • Revenues +15% • EBITDA + 25% • Cash generation continues to remain strong converting >100% EBITDA to cash • Interim dividend up 20% to 1.8p per share 15
Slide 16: Business Update
Business Update Peter Plumb – Chief Executive Officer 16
Slide 17: Agenda
Agenda • 2012 H1 Review: continued strong growth • 2012 H2: What to expect from our investment programme • MoneySavingExpert update • Current trading 17
Slide 18: We saved more people more money in H1
We saved more people more money in H1 Revenue growth of +15% and EBITDA growth of +25% • We continue to save customers money; +£540M in H1 – H1 savers* up, 2.6M vs. 2.37M – Avg savings up to £209 • Markets reflect customer sentiment – Insurance good growth – Savings very strong – Credit cards tough
Slide 19: Investments will deliver an even better shop in H2
Investments will deliver an even better shop in H2 Making it easier for customers to save money More content, easier access to ...delivering improved data sets and personal details and mobile ready… market insights H2 test new sites Personalised CRM 19
Slide 20: Marketing delivered strong efficiencies in H1
Marketing delivered strong efficiencies in H1 TV and radio spends slow, digital fuelled growth TV and radio spends show …digital marketing revenues signs of flattening… deliver further growth Offline Media Spends SEO £M H1* (Organic search) 59 54 +9% Rev +29% 43 +27% H1 (Vegas) SEM (Paid search) Rev
Slide 21: Customers choose MoneySupermarket.com
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 7/23/2011 7/30/2011 8/6/2011 39.57% 8/13/2011 8/20/2011 8/27/2011 9/3/2011 9/10/2011 9/17/2011 9/24/2011 * Source: Experian Hitwise – MS.com 10/1/2011 www.fool.co.uk 10/8/2011 10/15/2011 10/22/2011 www.tescocompare.com 10/29/2011 11/5/2011 www.comparet
Slide 22: MSE continues to help more customers
MSE continues to help more customers Both users and brand are performing well MSE acquisition is with the OFT for … meanwhile MSE continues to help approval, which we expect in Sept … users save money MoneySavingExpert.com Unique visitors (M) H1* 16 14 12 10 8 6 MSE Brand Tracker** 21% 27/28 May 12
Slide 23: Outlook
Outlook July trading in line with Board’s expectations • Revenues: – MoneySupermarket.com: current trading +10% • Insurance: good growth continues • Money: savings strong, credit cards slow BT market • Energy: tariffs likely to move in H2 • Travel: package holidays focus • Profitability: – Investmen
Slide 24: Questions & Answers
Questions & Answers 24 MoneySupermarket (3)
Slide 25: Appendix: Additional Financial Materials
Moneysupermarket.com Group Plc Appendix Additional Financial Materials 25
Slide 26: Adjusted EBITDA
Adjusted EBITDA Reconciliation from stat. revenue and operating profit to stat. and adjusted EBITDA H1 H1 H2 FY 2012 2011 Var. Var.% 2011 Var. Var.% 2011 Revenues Internet 102.2 91.6 10.6 12% 89.3 12.9 14% 180.9 Intermediary – 0.1 (0.1) n/a – – n/a 0.1 Total 102.2 91.7 10.5 11% 89.3 12.9 14% 181.0 G
Slide 27: Adjusted cost base
Adjusted cost base H1 2012 v H1 2011, H2 2011 H1 2012 H1 2011 H2 2011 £m £m Variance Variance % £m Variance Adjusted Cost Base* Staff Costs 16.5 13.6 2.9 21% 16.7 -1% IT Contractors ** 0.0 0.0 0.0 n/a 0.0 n/a Depreciation 1.8 2.0 -0.2 -10% 1.8 -3% Irrecoverable VAT 5.6 4.7 0.9 18% 4.4 27% Other Admi
Slide 28: Online marketing (SEM and Portal Partners)
Online marketing (SEM and Portal Partners) One third of revenues; 65% of total marketing spend FY 2010 FY 2011 H1 2011 H1 2012 £m £m £m £m Revenue from online sources* 47.1 55.6 28.3 34.0 Online marketing spend (40.0) (45.3) (23.5) (27.2) Associated Irrec. VAT (3.8) (4.9) (2.6) (2.9) Online marketin
Slide 29: VAT
VAT Settlement of leads business in 2011 • 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 Gr
Slide 30: VAT
VAT H1 2012 Partial Exemption Special Method (PESM) • A number of the group’s services are classified as exempt (for VAT purposes) • Restricts the proportion of input VAT incurred on expenses (e.g marketing) that may be recovered by the Group • Recoverable proportion calculated by reference to a PES
Slide 31: Principal terms of the MoneySavingExpert Acquisition
Principal terms of the MoneySavingExpert Acquisition • Initial payment £60m • £35m cash • £25m equity • Initial equity subject to a 3 year lock up • Funded from existing cash and 3 year £20m Revolving Credit Facility • Up to £27m deferred consideration payable 3 years from completion • 50/50 cash an
Slide 32: Statutory balance sheet
Statutory balance sheet June 2012 December 2011 June 2011 £m £m £m Intangible assets 148.8 160.6 170.6 Other non-current assets 11.5 12.0 13.5 Net current assets 20.0 17.2 29.3 Long term liabilities (19.9) (23.3) (28.8) Net assets 160.3 166.5 184.6 Capital and reserves 158.7 187.1 220.7 • Intangible
Slide 33: Accounting information
Accounting information Tax • Tax charge of £2.8m giving effective rate of 24.3% – In line with statutory tax rate for 2012 of 24.5%. – Reduction in effective statutory rate of corporation tax from 26.5% in 2011, to 24.5% in 2012. – Vesting of the 2009 LTIP scheme in H1 2012 has given rise to a Sched
Slide 34: KPIs – by vertical
KPIs – by vertical H1 H1 H2 2012 2011 Var 2011 Var Money Visitors ('m) 22.0 18.1 22% 17.2 28% Transactions ('m) 12.2 9.4 30% 9.4 30% Revenue (£m) - Click-based 30.3 24.8 22% 23.5 29% Revenue (£m) - Total 32.2 27.0 19% 25.6 26% RPV £1.47 £1.50 (2)% £1.49 (2)% RPT £2.48 £2.65 (6)% £2.51 (1)% Insurance
Slide 35: KPIs – MSM Internet
KPIs – MSM Internet H1 2012 H1 2011 Variance % H2 2011 Variance % Visitors ('m) 75.2 67.6 11% 62.7 20% Transactions ('m) 36.8 34.8 6% 30.0 23% Click Revenue (£m) 92.0 81.8 12% 80.4 14% Other Revenue (£m) 9.9 6.8 45% 9.1 8% Total Revenue (£m) 101.8 88.6 15% 89.5 14% RPV £1.35 £1.31 3% £1.43 -5% RPT £
Moneysupermarket.com Group — H1 2012 Earnings Presentation on 6ix