Moonpig sales drop as customer spend shifts to high street

The greetings card retailer saw revenues rise 115% on a two-year basis
// Moonpig revenues and sales drop as restrictions ease
// Adjusted EBITDA for the six months to October 31 fell 15.1% to £35m
// During the period, Moonpig delivered 19.5 million orders

Moonpig has reported a drop in revenues and sales after customer spending declined following the easing of restrictions.

Adjusted EBITDA for the six months to October 31 fell 15.1 per cent to £35 million, while revenues declined by 8.5 per cent to £142 million.

The greetings card retailer saw revenues rise 115 per cent on a two-year basis, which it said came as a result of customer base growth, higher purchase frequency and the growth of its gifting division.

READ MORE: Moonpig raises full year revenue expectations after strong sales

During the six-month period, Moonpig delivered 19.5 million orders, with 89 per cent coming from existing customers.

App orders also now represent 42 per cent of Moonpig’s total, while its gifting share of total revenue is now 48 per cent.

“Moonpig Group continues to successfully deliver against its strategy to become the ultimate gifting companion,” Moonpig chief executive Nickyl Raithatha said.

“Our new technology and data platform continues to make it easier for customers to remember, find, create and send the perfect greeting card and the perfect gift to their loved ones.

“As a result, our half-year results demonstrated even stronger customer retention and our highest-ever proportion of revenue from gifting.

“With revenue more than doubling over the past two years, we are confident that we have achieved an enduring transformation in the scale of our business.

“The long-term opportunity remains vast and we have never been in a better position to capture this growth.”

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