Moonpig Group PLC (LSE:MOON) said increased use of artificial intelligence (AI) is helping to lift sales with profits doubling in its latest half-year as costs fell.
Revenues in the six months to end October 2023 climbed by 6.5% to £152.1 million, underpinned by the Moonpig brand, where sales rose by 4.9% year-on-year, helped by rising subscriber levels, though Netherlands-based Greetz saw a nearly 10% drop.
Pre-tax profits jumped to £18.9 million (£9.1 million), though higher interest charges and IT costs as AI spending ramped up meant the underlying increase was 9.7% at £20.8 million.
Moonpig said its AI suite now includes "perfect pairings" for cards and gifts frequently bought together, suggested add-ons and a redesign of the product details page for gifts and flowers alongside personalised promotions.
Sales heading into the important Christmas period remain on track, the statement added, with expectations unchanged for full-year consolidated revenue and underlying profit (adjusted EBITDA).
Nickyl Raithatha, chief executive, said he was pleased with the return to revenue growth.
“Our focus on technology is driving this growth, underpinned by our resilient, profitable and cash-generative business model, leveraging our unique use of data to drive customer loyalty.”
Shares rose 1.7% to 179.5p.