Moonpig shares fall 5% as FY27 outlook unchanged, Experiences revenue falls

Moonpig's shares plummeted 5.29% to 247 pence following a lackluster outlook update, marking their lowest price point since July 1. The online greeting card and gifting company reported a revenue decline in its Experiences segment, despite overall revenue growth driven by increased order volumes and higher average order values. This decline was attributed to strategic decisions, such as the managed exit from some third-party retail partnerships and the reinvestment of commission revenue towards enhancing the recipient's experience.

Moonpig anticipates Experiences revenue to begin growing again in the second half of the financial year. The company reaffirmed its FY27 outlook as unchanged, maintaining targets for single-digit annual revenue growth, an adjusted EBITDA margin between 25-27%, and double-digit adjusted EPS growth. Despite the short-term setback, Moonpig remains focused on refining its customer proposition, with the improvement of this proposition expected to bolster its long-term performance.