27 June 2024 , 11:49
1468
0
Moonpig has reported a yearly profit surge of a third as the online greetings card company capitalised on increased prices and half a million paying subscribers.
The London-listed firm saw its shares rise by a tenth on Thursday following an update to investors regarding its financial status. The company disclosed a pre-tax profit of £46.4million for the year ending in April, a 33% increase from £34.9million the previous year.
This boost in earnings was supported by sales amounting to £341.1million, marking a 6.6% increase from last year. Moonpig attributed its sales growth to an increase in orders and a 5% rise in average selling prices. In 2023, the retailer hiked the prices of its cards, while stamp and shipping costs for gifts also saw an increase.
Approximately 90 million reminders have been set up for customers, who receive alerts ahead of events such as birthdays, Mother's Day, and Valentine's Day. The company also benefited from half a million people subscribing to its service, Moonpig Plus, which offers discounted cards and perks for £9.99 annually.
The group, which also owns Buyagift and Dutch brand Greetz, generates additional revenue from selling add-ons like wine, chocolate, and flowers alongside card purchases. Partnerships with Virgin Wines and Hotel Chocolat, as well as gift cards through brands like Champneys, contribute to the company's income.
Woman blasted as 'selfish' for not bringing sister-in-law along on romantic trip
Moonpig also disclosed that it has been utilising artificial intelligence (AI) to provide shoppers with a more personalised experience. The company utilises individual customer data to suggest gifts and display price ranges more tailored to each shopper, in addition to running an AI-powered chatbot.
The firm anticipates sales growth of approximately 5%-10% over the forthcoming financial year.