Mony Group Plc · LSE:MONY

Mony — H1 2024 Earnings Presentation

34 slides from Mony's earnings presentation, Jul 22, 2024

  1. Slide 1: Interim Results 2024

    Interim Results 2024 22 July 2024 MONY GROUP

  2. Slide 2: Peter Duffy, Chief Executive Officer

    Peter Duffy Chief Executive Officer MONY GROUP

  3. Slide 3: Strong trading and strategic achievements

    Strong trading and strategic achievements Helped households save £1.7bn*, up from £1.3bn* in H1 2023 Member-based propositions Enhanced provider services • MoneySuperMarket SuperSaveClub • B2B • MoneySavingExpert App • Market Boost • Quidco • Tenancy • Best ever H1 revenue of £223.5m; up 5%; with st

  4. Slide 4: Niall McBride, Chief Financial Officer

    Niall McBride Chief Financial Officer MONY GROUP

  5. Slide 5: Financial highlights: best H1 revenue and EBITDA

    Financial highlights: best H1 revenue and EBITDA Revenue* EBITDA** Basic EPS £223m £73m 8.3p +5% +8% +9% Reinvestment Rate Operating Cashflow Dividend per Share 12% £52m 3.3p - +26% +3% *Group revenue of £223m is presented net of inter-vertical eliminations of £6m (HY 2023: £3m, HY 2022: £1m) . 5 **

  6. Slide 6: Insurance: premium inflation stabilised, sustained high prices drive switching market

    Insurance: premium inflation stabilised, sustained high prices drive switching market HY24 performance Paid premium price inflation1 2 30 +30% £120m 54% 20 10 +18% 2 +14% 0 Q3 23 Q4 23 Q1 24 Q2 24 Revenue % of Group revenue Car insurance Home insurance Performance summary Market dynamics • Record le

  7. Slide 7: Money: strong credit card switching despite high interest rates

    Money: strong credit card switching despite high interest rates HY24 performance Base rates at 15-year high BoE Base Rate BoE Consumer % Credit absolute growth rate1 % £51m 6 2 23% 4 1 2 -2% 0 0 Revenue % of Group revenue BoE Base Rate BoE Consumer Credit absolute growth rate Performance summary Mar

  8. Slide 8: Home Services: low broadband switching and no material energy revenue as expected

    Home Services: low broadband switching and no material energy revenue as expected HY24 performance Broadband volume1 -5% £17m -15% 7% -10% +3% Revenue % of Group revenue HY23 HY24 Direct Indirect Performance summary Market dynamics • Performance driven by softer broadband and mobile switching • Broa

  9. Slide 9: Travel and Cashback

    Travel and Cashback Travel HY24 Performance Travel performance summary • Very strong Q1 performance £12m 5% • In Q2, solid package holiday performance offset by increased competition and weak car hire market • Providers grew Pay Per Click (‘PPC’) and brand spend to offload +1% capacity, driving high

  10. 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 5% to £152m; gross margin maintained at 68% £92m £90m – Gains in Insurance and PPC efficiency – Offset by Cashback and B2B which are lower margin £19m £21m • EBITDA* up 8

  11. Slide 11: Cash generative

    Cash generative Net debt2 £25.1m at 30 June 2024 (£19.8m at 31 December 2023) Includes cash of £24.9m (31 Dec 23: £16.6m), less borrowings of £48m (31 Dec 23: £34.5m) and Operating cashflow £51.8m loan notes payable to Podium’s non-controlling interest of £2.0m (31 Dec 23: £1.9m). £73.0m (£6.0m) (£1

  12. Slide 12: Capital allocation framework

    Capital allocation framework 1. 2. 3. 4. Organic Ordinary Acquisitions Enhanced growth dividends distribution 12

  13. Slide 13: Outlook

    Outlook • Generated growth and increased profitability, delivering best ever H1 revenue and EBITDA despite competition and subdued energy / broadband switching markets • We do not expect any material energy switching revenue in 2024 • FY24 Group adjusted EBITDA* will be within the current market con

  14. Slide 14: Peter Duffy, Chief Executive Officer

    Peter Duffy Chief Executive Officer MONY GROUP

  15. Slide 15: Our future focus

    Our future focus Grow a two-sided marketplace where consumers come to us direct to find the best prices on household bills, financial contracts and everyday spending and providers can more cost effectively reach the customers they want Member-based propositions Enhanced services to providers errss B

  16. Slide 16: MSM's SuperSaveClub

    MSM’s SuperSaveClub • Member-based rewards programme that supercharges savings and grows customer loyalty • SuperSaveClub Member benefits: 1. Guarantees best price 2. Meaningful rewards; (almost £300 annual reward on top of money saved on deal) 3. Quick and easy to save again and again • Superior an

  17. Slide 17: Scaling with Momentum

    Scaling with Momentum • Launched in September; 10 products live, representing more than half of MSM sales • Members are enquiring more often and buying more from us • Credit Monitor and Cashback adding more frequent engagement points • Results from our early members: • 20% increase in direct second

  18. Slide 18: MoneySavingExpert App

    MoneySavingExpert App • Delivering great MSE content; news, top deals, in-depth guides, cost of living help and more, in a member-based app • Great momentum; named a top 10 news app in UK 1 • Enhanced personalisation driving increased customer interaction and stickiness • Launch of improved MSE Cred

  19. Slide 19: Quidco

    Quidco • Member-based offer for customers to save on their spending across travel, online retail and services • Continued momentum in member numbers, driven by investment in data delivering more personalised and targeted CRM strategy • Personalisation also driving more frequent engagement, including

  20. Slide 20: Enhanced provider services

    Enhanced provider services We are getting providers onto the platform faster, driving growth from increasing number of products on the platform Market Boost • Insights for providers; using our 1st party data to help them improve their performance on our platform • Available on Money products, rollin

  21. Slide 21: Enhanced provider services

    Enhanced provider services B2B • Powering switching services for 3rd party brands across car and home insurance, broadband, mobile and energy, using our scalable group tech platform • Launched in car insurance in 2023; quickly won 10 B2B insurance partners • Becoming one-stop shop for digital busine

  22. Slide 22: Operational efficiencies unlocked through our strategy

    Operational efficiencies unlocked through our strategy Operational cost management • Operating costs kept to +2% in the half despite inflation. Strategic progress delivering good cost control • Ongoing simplification and automation; operating on lower headcount AI integration 65% Reduction in • Swit

  23. Slide 23: Summary - strategic progress, best H1 revenue and EBITDA

    Summary - strategic progress, best H1 revenue and EBITDA Focused on our strategy to reduce dependency on paid traffic, grow revenue per user and increase customer loyalty Momentum in member-based propositions Enhanced provider services • MoneySuperMarket SuperSaveClub • B2B; 10 new car insurance par

  24. Slide 24: Appendix

    Appendix MONY GROUP

  25. Slide 25: Strategic highlights: saved households an estimated £1.7bn in H1 2024

    Strategic highlights: saved households an estimated £1.7bn in H1 2024 Estimated Group MSM and MSE net customer savings Group marketing margin promoter score £1.7bn 60% 71 H1 2023: £1.3bn H1 2023: 58% H1 2023: 71 MSM & Quidco revenue MSM and Quidco active users MSM cross channel enquiry per active us

  26. Slide 26: Investment proposition

    Investment proposition The result 1. Clear social purpose Helping households save money; estimated £1.7bn saved in H1 2024 Highly profitable growth EBITDA margin EBITDA* growth 2. H1 2024 33% H1 2024 8% Scalable tech platform H1 2023 32% H1 2023 20% Powering price comparison across the Group, and fo

  27. Slide 27: Our Group

    Our Group HY24 Revenue: £223m*, up 5% TRAVEL INSURANCE MONEY CASHBACK HOME SERVICES £120m £51m £17m £12m £30m +14% -2% -10% +1% +3% Revenue Revenue Revenue Revenue Revenue 120 53 52 12 12 51 30 106 19 19 29 28 86 17 8 H1 22 H1 23 H1 24 H1 22 H1 23 H1 24 H1 22 H1 23 H1 24 H1 22 H1 23 H1 24 H1 22 H1 2

  28. Slide 28: Our purpose and ESG responsibilities

    Our purpose and ESG responsibilities Purpose • Our mission is to help UK households save money; £1.7bn* household savings delivered in H1 2024, up from £1.3bn in H1 2023 • 14.3m active users in H1 2024 in MoneySuperMarket and Quidco Helping households save money Money Saving Expert • Consumer financ

  29. Slide 29: Adjusted cost base and marketing spend

    Adjusted cost base* and marketing spend Adjusted cost base* Marketing spend and margin 58% 60% £154m £158m £89m £90m £7m £5m £7m £7m £26m £17m £15m £22m £34m £35m • 2 £20m £23m  Other 36%  D&A 11%  TV & radio (11%)  VAT & other admin 12%  Cashback and rewards 16%  Staff costs 2%  Online spend

  30. Slide 30: Product engineering investment

    Product engineering investment Total product engineering investment Reinvestment rate £26m £26m £20m £21m +12% +12% £6m £5m HY23 HY24 HY23 HY24 • Product engineering capex and operating costs consistent YoY Product engineering capital investment Product engineering operating costs • Expect tech cape

  31. Slide 31: Income statement

    Income statement £million H1 2024 H1 2023 Growth Revenue 223.5 213.8 5% Gross profit 152.2 145.4 5% Gross margin 68% 68% EBITDA* 73.0 67.7 8% EBITDA margin 33% 32% Depreciation (2.3) (2.1) Amortisation of technology related intangible assets (4.9) (4.4) Adjusting items** (5.4) (5.5) Operating profit

  32. Slide 32: Segmental measure of EBITDA contribution

    Segmental measure of EBITDA contribution H1 2024 Inter-vertical £million Insurance Money Home Services Travel Cashback Shared costs eliminations Total Revenue 119.9 50.9 16.7 11.7 29.8 - (5.5) 223.5 Directly attributable expenses (49.4) (15.9) (5.9) (9.2) (25.9) (49.7) 5.5 (150.5) EBITDA* contributi

  33. Slide 33: 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

  34. Slide 34: MONY Group

    MONY GROUP

MONY Group — H1 2024 Earnings Presentation on 6ix