Mony Group Plc · LSE:MONY
Mony — Moneysupermarket Group — H1 2017 Earnings Presentation
31 slides from Mony's earnings presentation, Jul 20, 2017
Slide 1: Interim Results
Moneysupermarket a roup Interim Results 20 July 2017
Slide 2: Matthew Price, Chief Financial Officer
Matthew Price Chief Financial Officer
Slide 3: Half year themes
Half year themes Diversified business operating in attractive growth markets • Doing a great job for our customers – saving them £1.1BN in H1 up 17% • Mixed performance – weak energy and strong growth in insurance • The relatively small Q2 collective switch in addition to soft core energy trading ha
Slide 4: We continue to grow our diversified business
We continue to grow our diversified business Revenue +5% AOP +3% EPS (Adjusted basic) +3% £165m £55.2m 8.1p 7.8p £53.8m £158m HY 2016 HY 2017 HY 2016 HY 2017 HY 2016 HY 2017 Technology Investment Interim Dividend +3% Cash +£7m £10m £10m 2.84p £18m 2.75p £11m HY 2016 HY 2017 HY 2016 HY 2017 HY 2016 H
Slide 5: Income statement
Income statement £Millions HY 2017 HY 2016 Growth Revenue 165.3 157.6 +5% Gross Margin 73% 76% Adjusted EBITDA 62.1 59.7 +4% EBITDA margin % 38% 38% Depreciation & Software Amortisation (6.9) (5.9) Adjusted Operating Profit * 55.2 53.8 +3% Adjusted Operating Profit margin % 33% 34% Adjusting items *
Slide 6: Revenue
Revenue Revenues HY 2017 (£M) HY 2016 (£M) Growth (%) Insurance 88.6 75.3 18% Money 41.8 41.7 0% Home Services 16.9 25.1 -33% MoneySuperMarket.com 147.3 142.2 4% MoneySavingExpert.com 20.0 19.3 4% TravelSupermarket.com 12.2 11.1 10% Intra-Group eliminations and other (14.2) (14.9) income Total Group
Slide 7: Strategic KPIs
Strategic KPIs Best Site Earn Customer Loyalty Preferred partner £279m £279m £279m 24M (+0%) 23M (+14%) 886 (+4%) Unique monthly People choosing Number of visitors to share data providers 43% (-2%) £10M (-£1M) Net Promoter 63% (+0%) Investment in Score Marketing Technology margin £1.1B (+17%) Saving
Slide 8: Our core markets are worth c.£1.7B, growing at 10%
Our core markets are worth c.£1.7B, growing at 10% Online Switching Market Today Insurance £1,100m Money £450m +10% GROWTH Home Services £150m Source: Based on internal data and external sources Note: £ relates to PCW revenue, LTM to June. Growth rate refers to value growth of potential fees. In 201
Slide 9: Insurance: Grew by 18% in H1 2017
Insurance: Grew by 18% in H1 2017 Home, Motor and Travel Insurance CAGR 2012/13 – 2016/17 71 +8% MSM sales new / switching +4% Online sales new / switching Volume of products / millions 26 Total market 22 3.4 4.6 2012/13 2016/17 2017 • The products above represent over 70% of Group Insurance revenue
Slide 10: Money: Good core credit product performance
Money: Good core credit product performance Cards & Loans CAGR 2012/13 – 2016/17 43 +15% MSM sales new / switching +14% Online sales new / switching Volume of products / millions 6 Total market 4 0.8 1.4 2012/13 2016/17 2017 • Cards and Loans represent over 70% of total Group Money revenues Source:
Slide 11: Energy: Changing market dynamics
Energy: Changing market dynamics Energy CAGR 2014/15 – 2016/17 50 +17% MSM sales new / switching +25% Online sales new / switching Volume of products / millions Total market 4 3 0.9 1.2 2014/15 2016/17 2017 • Market-leading collectives from big six providers not available so far this year • MSE Coll
Slide 12: Gross margin in-line with guidance
Gross margin in-line with guidance Marketing Spend Revenue By Source £200 £Millions HY 2016 HY 2017 YOY £165m £158m £150 TV & Radio 17.9 14.4 -3.5 20% 25% millions Online spend 29.2 39.7 +10.5 £100 80% 75% Other 11.2 7.8 -3.4 £50 Total Group 58.3 61.9 +3.6 £0 HY 2016 HY 2017 Marketing Margin 63% 63%
Slide 13: Positive cash position after distributing £59M to shareholders
Positive cash position after distributing £59M to shareholders Note: Other smaller items include £1.8M for disposals of an associate and investment and £0.5M Share purchases from EBT 13
Slide 14: Priorities have not changed
Priorities have not changed Organic Ordinary Acquisitions Special Growth Dividends Distribution • Group will borrow to fund growth investments, not to finance distributions to shareholders • On track to return £40M through share buy back 14
Slide 15: A mixed first half
A mixed first half The best place for people to switch & save • Strong and diversified positions in markets worth £1.7B and growing • Great opportunities for further growth as consumers continue to shift online to save money on their household bills and financial products • Technology investment rem
Slide 16: Mark Lewis, Chief Executive Officer
Mark Lewis Chief Executive Officer
Slide 17: Key factors driving H1 trading
Key factors driving H1 trading • We’ve helped more customers save more money than ever before • Share growth in Insurance driven by pricing and marketing • Gross margin reflects increased Paid Search investment and move to mobile • Increase in level of technology spend amortisation • Shift in energy
Slide 18: Clear H2 trading priorities
Clear H2 trading priorities • Refocusing on core energy trading • Maintaining growth in Insurance • Trading the Money category within the low interest rate environment • Continuation of the Travel recovery 18
Slide 19: To help every household make the most of their money
To help every household make the most of their money 19
Slide 20: To help every household make the most of their money
To help every household make the most of their money • Trading and delivery culture • Dynamic markets • Strong positions in growing markets • Customer relationships • Trusted brands and market leading • Pace of innovation diversification 20
Slide 21: Developing our future plans
Developing our future plans • Rediscover our DNA of innovation • Make our brands and services even more relevant to our users • Build on the best of the tech and data investments • Explore appropriate adjacencies 21
Slide 22: Q&A
Q&A Mark Lewis & Matthew Price
Slide 23: Appendix
23 Appendix Moneysupermarket Group
Slide 24: Unique monthly users
Unique monthly users Source: Google Analytics 24
Slide 25: Cash and capital update
Cash and capital update • Software amortisation costs were £6 million in H1 2017 and we expect the full-year amortisation charge to be in the region of c.£16 million for 2017 • We expect technology capital investment of c.£17 million in 2017 • The Group is reorganising its London offices and so will
Slide 26: Dividends, EPS and dividend cover
Dividends, EPS and dividend cover Dividend (pence) HY 2017 HY 2016 Interim 2.84 2.75 Ratios Earnings per share 7.4 6.9 Dividend Cover 2.6 x 2.5 x Dates for interim dividend – [date] ex-div date, [date] payment date 26
Slide 27: Adjusted operating profit
Adjusted operating profit £Millions HY 2017 HY 2016 Variance Variance (%) Revenue 165.3 157.6 7.7 +5% 120.4 120.4 0.0 +0% Gross Profit Gross Margin 73% 76% Administrative Costs (54.5) (52.7) (1.8) +3% Distribution Costs (17.4) (21.2) 3.8 -18% Operating Profit 48.5 46.5 2.0 +4% Amortisation of acquir
Slide 28: Adjusted cost base
Adjusted cost base £Millions HY 2017 HY 2016 Variance Staff costs 25.4 24.7 0.7 Depreciation 0.7 1.1 (0.4) Amortisation of technology 6.0 4.8 1.2 Irrecoverable VAT 6.3 4.4 1.9 Other administrative costs 9.9 10.6 (0.7) Total Adjusted Administrative Costs 48.3 45.6 2.7 Advertising 14.4 17.9 (3.5) Othe
Slide 29: Tax and Earnings Per Share calculations
Tax and Earnings Per Share calculations £Millions HY 2017 HY 2016 Profit before tax 49.5 47.1 Standard rate of tax 19.25% (2016: 20%) 9.5 9.4 Effects of: Profit on disposal exempt from tax (0.2) (0.2) Tax expense for the period 9.2 9.2 Effective tax rate 18.6% 19.5% Adjusted Earnings 44.4 42.8 Basic
Slide 30: Statutory balance sheet
Statutory balance sheet £Millions 30 June 2017 30 June 2016 Property, Plant And Equipment 6.9 7.6 Intangible Assets - Technology 41.1 33.3 Intangible Assets - Acquisition Related 113.1 128.6 Investments 0.2 0.5 Trade and Other Receivables 47.4 42.3 Cash and Cash Equivalents 17.7 20.7 Total Assets 22
Slide 31: Quarterly performance
Quarterly performance Quarterly performance Q1 17 (£M) Growth (%) Q2 17 (£M) Growth (%) HY 2017 (£M) Insurance 44.5 23 44.1 13 88.6 Money 22.3 (2) 19.5 3 41.8 Home Services 9.3 (45) 7.6 (5) 16.9 MoneySuperMarket.com 76.1 0 71.2 8 147.3 MoneySavingExpert.com 10.7 (4) 9.3 15 20.0 TravelSupermarket.com
Moneysupermarket Group — H1 2017 Earnings Presentation on 6ix