- Adjusted EBITDA at all-time high
- SuperSaveClub exceeds one million members
- £30 million buyback launched
Shares in MONY Group (MONY) rallied 6% to 201.2p after the price comparison site reported record full-year revenues and its highest ever adjusted earnings and signalled the strength of its cash flows and balance sheet by launching a £30 million share buyback.
There was also relief as the tech-enabled savings platform insisted it remains ‘well-positioned to continue to deliver sustainable, profitable growth’ and that despite headwinds in the car insurance switching market, adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) for 2025 will be ‘broadly within’ the £143.1 million to £151.7 million consensus range.
QUIDS IN
The price comparison giant’s pre-tax profits surged 18% higher to £108.7 million in the year to December 2024 as revenue ticked up 2% to a record £439.2 million. The resilient top-line showing was driven by a good performance in the Insurance business, particularly in the first half, as well as a growth in MONY’s Cashback business. The FTSE 250 firm behind MoneySuperMarket and MoneySavingExpert also delivered its highest-ever adjusted EBITDA, up 7% to £141.8 million underpinned by management’s tight grip on costs.
MONY also returned to a net cash position last year after paying the down the loan for its acquisition of cashback business Quidco.
While revenue was down in Money, Travel and Home Services in 2024, Insurance rode to the rescue with 7% growth. Revenue in the final quarter was flat, with a ‘solid’ Insurance performance offset by softer trading in Money, due to fewer attractive current account deals, as well as in and Travel, where performance slowed in a competitive market.
WHAT DID THE CEO SAY?
Peter Duffy, CEO, said MONY was ‘proud to have helped customers save a record £2.9 billion - the more customers save, the more the group grows. We’ve done this by delivering strong performance both operationally and financially in 2024 as we continue to execute on our strategy. This includes encouraging customers to join our member-based propositions like the SuperSaveClub which, in turn, reduces our reliance on increasingly expensive pay-per-click marketing.’
Duffy added: ‘This sustained momentum has enabled us to grow the dividend by 3% this year, alongside the announcement of a share buyback programme of up to £30 million, which will deliver enhanced returns to shareholders. This reflects our confidence in the continued execution of our strategy, and importantly, means we retain significant capacity to support future growth.’
WATCHING THE PENNIES
Russ Mould, investment director at AJ Bell, said MONY Group had plenty of good news to grab investors’ attention including record full-year revenue and adjusted earnings, a hike in the dividend, a bumper buyback and a return to net cash.
‘Households are under pressure to watch every penny and using comparison sites is a must for many people. This remains a competitive industry where marketing costs are a significant outlay, but MONY is gaining some traction in signing people up to its SuperSaveClub – offering customers free days out and other benefits.
‘This is a cheaper route to securing customers and also makes them sticky. It now represents a meaningful portion of overall business.’
However, Mould observed: ‘There were some less-positive signs, particularly looking at performance in the final three months of 2024, where growth in its key insurance segment slowed significantly. Specifically, the company does note a snarl-up in the car insurance switching market but the diversified nature of MONY’s offering means opportunities elsewhere could compensate.
‘The market will also take some comfort from the group’s insistence any cost inflation can be mitigated through further efficiencies.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (James Crux) and the editor (Steven Frazer) own shares in AJ Bell.
