Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — H1 2009 Earnings Presentation
43 slides from Mony's earnings presentation, Aug 4, 2009
Slide 1: Moneysupermarket.com Group PLC 2009 Interim Results Presentation
Moneysupermarket.com Group PLC 2009 Interim Results Presentation 4 August 2009 1
Slide 2: Agenda
Agenda Introduction: Gerald Corbett Financial Review: Paul Doughty Business Review and Marketing: Peter Plumb/David Osborne Questions and Answers: moneysupermarket.com 2
Slide 3: Summary
Summary New team settled in well Business reconfigured for the credit crunch Trading stabilised Series of improvement programmes beginning to make a difference, especially marketing Interim dividend maintained Special dividend a sign of confidence in the future 3
Slide 4: Financial Review
Paul Doughty Chief Financial Officer Financial Review 4
Slide 5: Summary financial highlights – H1 2009
Summary financial highlights – H1 2009 Profitability has stabilised H1 2009 managed margin EBITDA and EBITDA margins ahead of H2 2008 Visitors 3% ahead of same period last year despite significantly lower marketing spend both on and offline New creative launched mid June Money Vertical traded consis
Slide 6: Adjusted income statement
Adjusted income statement H1 2009 H1 2008 H1 2008 H2 2008 H2 2008 £m £m Variance £m Variance Revenue 68.5 99.4 (31%) 79.4 (14%) Internet 67.8 95.3 (29%) 77.2 (12%) Intermediary 0.7 4.1 (83%) 2.2 (68%) Gross Profit 47.7 66.6 (28%) 50.1 (5%) Gross Margin 69.6% 67.0% 63.1% Adjusted Administrative Costs
Slide 7: Adjusted cost base – H1 2009 v H1 2008
Adjusted cost base – H1 2009 v H1 2008 (£3.2m) £0.5m (£2.1m) £0.4m (£11.5m) (£3.0m) £70.8m £51.9m H1 2008 Staff Costs Depreciation Irrecoverable Other Admin Internet Intermediary H1 2009 VAT Marketing Marketing (1) Excluding amortisation of intangibles, goodwill impairment, pre-IPO option charges, a
Slide 8: The shape of revenues changed markedly H1 2009 v H1 2008
The shape of revenues changed markedly H1 2009 v H1 2008 H1 2008 internet revenue H2 2008 internet revenue H1 2009 internet revenue Home Services / 34% Home Services / Other, £4.1m, Home Services / Other, £2.6m, 4% Other, £3.3m, 4% 4% Travel, £11.1m, Money - credit, Travel, £8.0m, Money - credit, Mo
Slide 9: Insurance - Half year highlights
Insurance - Half year highlights Trading improving into Q2; higher RPT Revenues declined 6% against H1 last year and in line with H2 Q2 better than Q1 Visitors declined 8% against H1 last year but increased 4% against H2 Actively managed margin rather than volume New creative launched mid June Highe
Slide 10: Money - Half year highlights
Money - Half year highlights Trading stabilised; visitors numbers ahead Revenue declined by 54% against H1 2009 and 34% against H2 2008 Availability of credit product Significantly down on 2008 but stabilising Q1/Q2 2009 Withdrawal from market of a number of providers in 2008 First Plus closed for n
Slide 11: Travel - Half year highlights
Travel - Half year highlights Trading in line with market; managed for margin Revenue down 15% to £9.5m in H1 Weakness in demand for discretionary weekend type travel Hotels and Flights channels impacted Package holidays performing well Passenger numbers down 15% leaving UK Visitors down 12% on H1 2
Slide 12: Cash
Cash Cash balances of £75.6m at 30 June 2009 £19.1m of cash generated before tax and dividend payments 100% of EBITDA converted to cash Capital light business £0.6m £1.7m (£1.9m) (£5.7m) £12.6m (£11.1m) £2.0m £3.9m £0.1m £75.6m £73.5m Cash at Adj. Depreciation Amortisation Working Interest Capex Tax
Slide 13: Interim Dividend held; Special Dividend announced
Interim Dividend held; Special Dividend announced The Board remains confident in the ability of the Group to continue to generate cash from operations The Board proposes to pay an interim dividend equal to the interim dividend paid in 2008 equating to 1.3p per share The Board proposes that in additi
Slide 14: Business Review
Peter Plumb Chief Executive Officer Business Review 1. How is the business shaping up ? 2. How is marketing working harder ? 3. Future growth levers 4. Q3 outlook based on July trading 14
Slide 15: Saving customers money on their household bills
Moneysupermarket.com Saving customers money on their household bills 15
Slide 16: Our brands retained their leadership positions in an ever more competitive market
Our brands retained their leadership positions in an ever more competitive market moneysupermarket.com travelsupermarket.com 60.00% 50.00% 45.00% 50.00% 40.00% 40.00% 35.00% 30.00% 30.00% 25.00% 20.00% 20.00% 10.00% 15.00% 0.00% 10.00% Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-
Slide 17: We have done what we said we would do
We have done what we said we would do Organisation now aligned to the new economic environment Continued to build new management team Headcount at 470 saving £180K/mth on salaries More flexible IT resource Re-engineered systems are on track New Travel site launched – taste of things to come ‘Re-engi
Slide 18: Our marketing investment is now working much harder
Our marketing investment is now working much harder 2008 we spent £84* million on marketing 2009 we need more for less Numbers Exclude Irrecoverable VAT H1 2009 H1 2008 Var % Online spend (£m) 20.3 27.4 -26% SEO Team Headcount 21 18 Offline Spend (£m) 9.3 11.7 -21% Visitors (m) 63.6 62.0 3% * Includ
Slide 19: We have a great product!
We have a great product! The Daily Telegraph The Sunday Telegraph ‘soled MONeysupermarket. Say } iit vale the price comparison site moneysupernarket eornes secon he Hae oll Northern Rock 0645600 4868 ShverSavrgs30 __sDay $5,000 __4.90% © ® (0870-900 0610 Preier Notion ‘60Day £2,500 4.90% Heritable B
Slide 20: TV is tip of an FY08 £84m spend!
TV is tip of an FY08 £84m spend! c.25% offline (TV, radio, print etc..) c.75% online/ partners/ crm 20
Slide 21: Online paid search is now better controlled
Online paid search is now better controlled We bid on over 1.5m keywords Source: Efficient Frontier, Google AdWords 21
Slide 22: In natural search we are best in class
In natural search we are best in class Insurance Money Travel Other Keyword Position Keyword Position Keyword Position Keyword Position car 2 credit cards 1 flights 1 broadband 1 insurance cheap car 1 credit card 1 flights to Paris 2 cheap 1 insurance broadband home 1 loans 1 flights to 2 broadband
Slide 23: More efficient offline spend is delivering results
More efficient offline spend is delivering results 23
Slide 24: Cross sell is demonstrating the value of our product range
Cross sell is demonstrating the value of our product range High impact creative Relevant insight Cross-vertical visits 24
Slide 25: We see solid long term growth potential for insurance business
We see solid long term growth potential for insurance business Insurance providers Motor Insurance market Av saving per year per switch listed (Motor & Home) (Million policies by source) from a PCW (Motor £) 159 24 First £147 12 94 Second £111 8 Third £96 4 Fourth+ £100 Researchers Non PCW users Mot
Slide 26: In Money, product availability and transactions are stabilising
In Money, despite a changed mix, product availability and transactions are stabilising Moneysupermarket.com Credit availability has flattened Money transactions have has maintained a strong also stabilised product range throughout 08/09 Mortgage Products Available Transactions (000) Provider count 2
Slide 27: Our travel business is well placed for a returning market
Our travel business is well placed for a returning market with an increasing product offering and new site Travel providers listed Travelsupermarket.com New Travel site launched H1 152 125 H1 2008 H1 2009 Source: Internal Data June 08 vs June 2009 27
Slide 28: Outlook and Current Trading
Outlook and Current Trading Overall Good start to 3rd quarter H2 revenues 10% - 15% ahead of H1run rate July revenues circa 15% down against run rate Q3 revenues last year H2 profitability single digit ahead of H1 run rate July profitability circa 15% down against run rate Q3 profitability last year
Slide 29: Agenda H2 2009 and beyond
Agenda H2 2009 and beyond Products Broadest range of products Right product not just the cheapest Technology Flexible architecture Best intuitive customer journey Marketing Long term relationship with customers Maintaining our enviable brand position Efficient communication strategy 29
Slide 30: Questions and Answers
(£) Questions and Answers HOISIOIIOIOION® ° moneysupermarkot QI ..the number one price comparison site 30
Slide 31: Appendix: Additional Financial Materials
Appendix Additional Financial Materials 31
Slide 32: Adjusted EBITDA
Adjusted EBITDA H1 H1 H2 FY FY 2009 2008 Var. Var.% 2008 Var. Var.% 2008 2007 Revenues Internet 67.8 95.3 (27.5) (29)% 77.2 (9.4) (12)% 172.5 152.2 Intermediary 0.7 4.1 (3.4) (83)% 2.2 (1.5) (68)% 6.3 10.7 Total 68.5 99.4 (30.9) -31% 79.4 (10.9) (14)% 178.8 162.9 Gross Profit 47.7 66.6 (18.9) -28% 5
Slide 33: Direct to site revenue maintained on significantly reduced TV expenditure
…and direct to site revenue maintained on significantly reduced TV expenditure H1 2008 revenue share H1 2009 revenue share 34% Partners, 14% Partners, 12% Direct (incl. SEO), 62% SEM, 25% Direct (incl. SEM, 26% SEO), 61% Source: Company data Direct to site revenue continues to be the largest part of
Slide 34: Adjusted cost base – H1 2009 v H2 2008
Adjusted cost base – H1 2009 v H2 2008 H1 2009 H1 2008 H2 2008 £m £m Variance Variance % £m Variance Adjusted Cost Base (1) Staff Costs (ex. Making Money ) 13.0 14.8 -1.8 -12% 12.3 6% IT Contractors 0.2 1.6 -1.4 -88% 1.7 -88% Depreciation 2.0 1.5 0.5 33% 2.0 0% Irrecoverable VAT 2.5 4.6 -2.1 -46% 3.
Slide 35: Home Services - Half year highlights
Home Services - Half year highlights Utilities revenues weaker; Visitor Growth Revenue decreased by 42% to £2.4m against H1 2008 Switching environment for utilities less favourable – climate of stability/falling prices Visitors increased by 119% to 8.4m Driven by launch of shopping channel in Oct 08
Slide 36: Statutory balance sheet
Statutory balance sheet June 2009 June 2008 £m £m Intangible assets 211.1 306.3 Other non-current assets 13.7 16.2 Net current assets / (liabilities) 68.6 60.2 Long term liabilities (43.4) (50.7) Net assets 250.0 332.0 Capital and reserves 250.0 332.0 Intangible assets include £55m of goodwill, and
Slide 37: Accounting information – share option charges (cont’d)
Accounting information – share option charges (cont’d) Pre-IPO 13.6m unapproved options issued 2007 to vest 2008 – 2010 with exercise price of 6p 1.2m SIP/Chairman awards issued 2007 to vest 2010 with an exercise price of nil pence 0.5m options under Simon Nixon scheme issued and vested during 2008
Slide 38: Accounting information (cont’d)
Accounting information (cont’d) Post-IPO 1.2m LTIPs options issued Dec 2007 which vest in 2010 with an exercise price of nil 7.4m LTIPs options issued in April 2009 which vest in 2012 with an exercise price of nil Post IPO options are included as a charge against adjusted EBITDA Charge (£m) 2008 200
Slide 39: Accounting information (cont’d)
Accounting information (cont’d) Tax Tax charge of £1.2m giving effective rate of 65% Higher than statutory tax rate of 28% due to: Trapped losses in Germany The level of disallowed share based payment charges versus the schedule 23 deduction. 39
Slide 40: Vertical KPIs by half year
Vertical KPIs by half year H1 H1 H2 2009 2008 Var 2008 Var Money Visitors ('m) 19.1 17.7 8% 17.5 9% Transactions ('m) 5.8 7.9 (26)% 7.1 (18)% Revenue (£m) - Click-based 15.8 33.4 (53)% 24.0 (34)% Revenue (£m) - Total 18.6 40.3 (54)% 28.0 (34)% RPV £0.97 £2.28 (57)% £1.60 (39)% RPT £2.69 £4.22 (36)%
Slide 41: KPIs - Internet
KPIs - Internet H1 2009 H1 2008 Growth Group Visitors ('m) 63.6 62.0 3% Transactions ('m) 31.6 39.6 (20%) Click Revenue (£m) 60.5 81.3 (26%) Other Revenue (£m) 7.3 13.8 (47%) Total Revenue (£m) 67.8 95.2 (29%) RPV £1.06 £1.54 (31%) RPT £1.91 £2.05 (7%) 41
Slide 42: Appendix: Market Data
Appendix Market Data Unique visitors by month 42
Slide 43: Markets we operate in
Markets we operate in Travel market trends Money Market Trends Utilities Annualised Visitors leaving UK to go Annualised product purchase Percentage Churn abroad (M) (M) 18.2 20 17.6 19 8.3 17.4 17.2 18 6.7 17 16 5.3 16 15 4.4 15.2 14 2.9 13 1.9 12 1.4 1.1 11 10 Loans Cards Mortgages Savings Jun-08
Moneysupermarket.com Group — H1 2009 Earnings Presentation on 6ix