MONY Group Reports Record Revenue and EBITDA in 2024 Preliminary Results
Why we think this is good
MONY Group has delivered a solid performance in 2024, achieving record revenue and EBITDA despite challenging conditions in some verticals. The company's strategic focus on member-based propositions, particularly the SuperSaveClub which has surpassed 1 million members, is showing promising results. The return to a net cash position, coupled with a 3% increase in dividends and a new £30 million share buyback program, demonstrates financial strength and confidence in future performance. While there are some headwinds, such as increased PPC costs and softening in certain verticals, the overall picture remains positive with growth in key financial metrics and strategic initiatives.
Key Points
- Record revenue of £439.2m, up 2% year-on-year
- Highest ever Adjusted EBITDA of £141.8m, up 7%
- Profit After Tax increased by 11% to £80.2m
- SuperSaveClub surpassed 1 million members
- Return to net cash position after paying down Quidco acquisition term loan
- Final dividend proposed at 9.2p, bringing total FY24 dividend to 12.5p (up 3%)
- £30 million share buyback program announced
- B2B partnerships expanded to 35 live partners
- Increased PPC costs and challenges in some verticals (Money, Home Services, Travel)
- Ongoing discussions with HMRC regarding VAT recovery method
Summary
MONY Group PLC has released its preliminary results for the year ended 31 December 2024, showcasing record revenue of £439.2m (up 2%) and highest ever Adjusted EBITDA of £141.8m (up 7%). The company's strategic focus on member-based propositions is bearing fruit, with the SuperSaveClub surpassing 1 million members. Despite challenges in some verticals and increased PPC costs, MONY Group has returned to a net cash position and demonstrated confidence in its future by increasing its dividend by 3% and announcing a £30 million share buyback program. The company's B2B partnerships and implementation of AI in operations show promise for future growth. However, ongoing discussions with HMRC regarding VAT recovery methods present a regulatory challenge. Broker Shore Capital maintains a 'Buy' recommendation with a target price of 195.40p, suggesting potential upside from the current share price of 189.90p.