Moonpig posts higher profits as greetings card subscription service takes off

Shares in the London-listed company were up by a 10th on Thursday after it updated investors on its finances.

Moonpig posts higher profits as card subscription service takes off (John Nguyen/PA) (PA Archive)

Moonpig has seen yearly profit jump by a third as the online greetings cards business cashed in on higher prices and half a million paying subscribers.

Shares in the London-listed company were up by a 10th on Thursday after it updated investors on its finances.

It reported a profit before tax of £46.4 million in the year to the end of April, up 33% from £34.9 million the previous year.

Higher earnings came off the back of sales totalling £341.1 million, 6.6% higher than last year.

Moonpig said sales growth was driven by more people placing orders as well as average selling prices rising by 5%.

The retailer increased the prices of its cards during 2023, while stamp and shipping prices for gifts have also risen.

Moonpig said it has 90 million customer occasion reminders on its database (James Manning/PA) (PA Archive)

It has about 90 million reminders set up for customers, who are alerted ahead of birthdays and occasions like Mother’s Day and Valentine’s Day.

It said it also benefitted from half a million people signing up to its subscription service, Moonpig Plus, which offers discounted cards and perks for £9.99 a year.

The group, which also owns Buyagift and Dutch brand Greetz, also makes money from selling add-ons like wine, chocolate and flowers when people purchase cards.

It has partnerships with the likes of Virgin Wines and Hotel Chocolat, as well as gift cards through brands such as Champneys.

Moonpig also revealed it has been using artificial intelligence (AI) to give shoppers a more personalised experience.

It uses individual customer data to recommend gifts and show price ranges more suited to each shopper, as well as operating an AI-powered chatbot.

The company said it is expecting sales to grow by about 5%-10% over the next financial year.