This article first appeared on GuruFocus .
Release Date: December 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Moonpig Group PLC ( FRA:769 ) achieved a 9.4% revenue growth, outperforming a challenging consumer backdrop.
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The company maintained a strong EBITDA margin of 27%, translating to adjusted EPS growth of 13%.
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Moonpig Group PLC ( FRA:769 ) completed the first half of a GBP 60 million share buyback and increased its interim dividend by 25%.
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The company saw a 36% growth in Plus subscribers, reaching 1 million members, and an 11% increase in reminders to 107 million.
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New markets delivered impressive self-funded revenue growth of 32% year on year, with Ireland now sustainably profitable.
Negative Points
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Moonpig's gross margin rate decreased by 1.7% points to 55.8%, affected by higher gift attachment and increased shipping costs.
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The experiences segment saw a revenue decline of 8.9% year on year, despite operational improvements.
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Net finance costs rose to GBP5.7 million, impacted by foreign exchange differences on EUR denominated debt.
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H1 free cash flow was slightly lower at GBP8.6 million compared to GBP10.1 million last year, due to higher CapEx.
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The US market remains in the experimentation phase, indicating slower progress in scaling operations there.
Q & A Highlights
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Q: Can you provide more details on the strategic progress and future growth plans for Moonpig Group? A: Nickyl Raithatha, CEO, explained that Moonpig Group is the online leader in a category still transitioning to digital. The strategy focuses on cards and attached gifts to maximize customer loyalty and profitability. The company aims to capture more card buyers, increase the number of cards sent per customer, and drive more gifts with each purchase. These efforts are expected to sustain strong top-line growth. The company is also expanding into new markets, with Ireland now profitable and Australia approaching profitable growth.
Q: How did Moonpig Group perform financially in the first half of the year? A: Andy MacKinnon, CFO, reported a strong financial performance with a 6.7% increase in revenue to GBP 168.6 million. Adjusted EBITDA grew to GBP 45 million with a margin of 26.7%. The company also saw a 13.1% increase in adjusted basic EPS to 6.9p. Free cash flow reached GBP 64.5 million over the last 12 months, supporting a 25% increase in the interim dividend and a GBP 60 million share buyback plan.
Q: What are the key drivers of revenue growth for Moonpig Group? A: The key drivers include an increase in average order value (AOV) by 5.6%, driven by a higher gift attach rate and favorable postage mix. The active customer base grew by 400,000 to 12.1 million, with strong new customer acquisition. The company also saw growth in its subscription service, Moonpig Plus, and an increase in occasion reminders set by customers.
Q: How is Moonpig Group leveraging technology to enhance customer experience? A: The company is using AI-driven creative features to personalize cards and improve customer engagement. New features include prepopulating card details like age and recipient names. The AI customer service tool is resolving a third of all queries with high customer satisfaction. The company is also focusing on generative engine optimization for future growth in traffic from large language models.
Q: What is the outlook for Moonpig Group for the rest of the year? A: The company expects continued strong performance, with consistent revenue growth at Moonpig and positive trading momentum at Greetz. The experiences segment has shown improved performance in the second half so far. The company remains focused on executing growth levers, scaling international opportunities, and enhancing the customer proposition through technology. Expectations for the full year remain unchanged.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
