Starry outlook for Moonpig as increased demand drives doubled revenue
An online greeting card platform has today announced that it is on track to double its revenue for this year.
Moonpig Group, headquartered in London, has predicted that its revenue for the financial year ending 30 April will be approximately £346m, double 2020’s £173m.
The company reported a “significant” increase in demand across the first three quarters of the year, and saw its “strongest ever” trading week this month ahead of Valentine’s Day.
It said that consumer habits have changed, with more frequent purchases and higher average order costs as customers add gifts to their greeting card orders.
Throughout the year, the group has invested in increased marketing spend as well as higher temporary staffing levels to meet demand.
Moonpig commented: “The significant increase in demand seen in the first half of the year continued through the third quarter, and last week we saw the strongest ever trading week in the group’s history ahead of Valentine’s Day.
“Purchase frequency remains unusually elevated due to Covid-19 related restrictions, and we are now also seeing a temporary increase in average order values, as more customers attach gifts to their orders.
“In line with our strategy in the first half of the year we have further increased marketing activity to accelerate customer acquisition.
“Accordingly, we now expect revenue for the financial year ending 30 April 2021 to be approximately double the £173m revenue for the previous year.
“The higher levels of customer purchase frequency and elevated gift attach rates are both expected to moderate as lockdown restrictions ease.”
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