- £60 million buyback launched
- Shares up 38% over past year
- Full year sales miss
Shares in Moonpig (MOON) were marginally higher in morning trading after the online greetings card outfit said adjusted EBITDA (earnings before interest taxation depreciation and amortisation) for the year to April 2025 will be at the top end of its 25% to 27% guidance range.
Combined with the launch of a new £60 million share buyback, this compensated for full year revenue guidance of between £350 million and £353 million that was shy of consensus expectations following a softer second half performance.
Nevertheless, Moonpig said revenue growth was underpinned by strong sales driven across three core areas: customer base, order frequency and average order value.
SOFT START
It was not good news however for Greetz, Moonpig’s Netherlands-based arm, which had a softer start to the second half of the year, although the company said recent performance has been improving.
The company also said it was focusing on delivering a transformation plan for its UK gifts arm, Experiences which includes the Red Letter Days and Buyagift brands.
Membership of its Plus subscription scheme continues to grow and its tracked Moonpig Guaranteed Delivery service, Moonpig added.
REMAINING POSITIVE
Although full year 2025 sales will be softer-than-expected, missing consensus by circa 1%, Panmure Liberum remains positive about the online greetings card outfit.
‘Results today are in line with our views where we believe consensus estimates for sales growth in the next two years are overoptimistic, and we remain below consensus here,’ said the broker.
‘A new £60 million buyback is attractive and annual cash returns of circa 9-10% of the market cap underpins our [recommendation].’
