TIDMSAGA
RNS Number : 6156N
SAGA PLC
24 January 2023
24 January 2023
Saga plc
Capital Markets Event
Saga pivoting to growth: Leveraging Media, Insight and Data
to create the leading Superbrand for older people
Launch of Saga Exceptional - a dedicated global website for the
over 50s
Saga plc (Saga or the Group), the UK's specialist in products
and services for people over 50 is, today, holding a Capital
Markets Event to outline the details behind its strategy to build
the largest and fastest-growing business for older people and
position Saga as the leading Superbrand for the 'Experience
Generation'.
The event will be hosted by Euan Sutherland, Group CEO, with
presentations from Aaron Asadi, CEO of Media, Michael O'Donohue,
Chief Data Officer and Lisa Edgar, CEO of Insight.
In March 2022, Saga outlined an evolution of its strategic
approach, to convert the foundations laid over the previous two
years into sustainable long-term growth. Under this plan, Saga is
clearly focused on maximising its existing businesses and reducing
its debt, while step-changing its ability to scale the business and
positioning Saga as the leading Superbrand for older people. The
presentations today will focus on the significant opportunities
Saga sees in creating and growing a new media business, leveraging
its proprietary insights and commercialising and growing its,
already strong, database.
At the heart of this, the Group has today launched Saga
Exceptional, a brand-new website which will proudly represent the
real needs and interests of people over 50 - a group which remains
significantly under-served online. Saga Exceptional has been
created specifically for older consumers, providing a place for
them to find best-in-class advice along with inspirational stories,
written by people who understand their passions and their needs.
Saga Exceptional will be a place for the over 50s to be seen and
heard, while enabling Saga to interact with its customer base on a
daily basis. The website is one part of a wider Media strategy,
designed to serve existing customers, win new customers, forge new
commercial relationships and drive customers to existing Saga
businesses.
The highlights of the presentations today are:
- Media: Saga Media will provide revenue diversification, with
capital light, predictable, digital revenue streams; the business
will be profit-generative in its own right within five years, as
well as a growth driver for existing businesses. The Saga
Exceptional content platform will provide millions of global
customers with engaging daily content and will drive revenue
through advertising, sponsorship, endorsements and affiliate deals.
The wider Media strategy will include newsletters, greater leverage
of Saga Magazine content and an expanded social media presence. All
this will hugely increase Saga's volume of interaction with
customers, driving the wider business that converts loyalty and
trust into lower acquisition and higher retention.
- Insight: Saga plans to accelerate its strategy to turn insight
into exceptional customer experiences, driving commercial
strategies based on how customers think and behave. By fully
understanding customers, their more active lifestyles and how they
want to be perceived, the Group expects to be able to continue to
create new products and services to fit them perfectly -
encouraging them to return again and again.
- Data: Saga has a significant opportunity to mine and
commercialise its database of 10 million people over 50, creating a
lifetime value model, benefitting and rewarding customers. By
knowing older people better than anyone else, Saga is able to
personalise customers' experience from their first interaction,
deepening the Group's connection with them and reducing the cost of
acquiring new customers.
Measuring success - the key priorities:
- Diversification of Saga, with more balanced revenue and profit
split across Cruise, Travel, Insurance, Money and Media and
developing capital light new businesses
- Creating a lifetime value model for customers of up to 30
years
- Development of Saga Media to increase the frequency of
interaction with Saga customers - from once or twice a year, to
twice a day. Saga Media plan sees growth to 10m global customers
within five years, with GBP50m of new revenue across five years to
2027/28 and GBP7m of annual PBT by 2027/28, growing to GBP40m by
2033/34
- Leveraging the Saga database to increase customers' holdings
of products and services from the current average of one, to at
least three
- Development of new products and services, supported by market
leading insights
Euan Sutherland, Saga Group Chief Executive Officer, said:
"Today we are laying out our plans as we pivot Saga for growth
and sharpen our focus on building the largest and fastest-growing
business for older people in the UK. This is all part of the wider
plan to make Saga the leading Superbrand for, what we call, the
'Experience Generation'.
"As a business, we understand this generation better than anyone
else - and as they change and adapt, we will build on this
knowledge and continue to serve older people better than anyone
can. This is a group which has, too often, been overlooked or
misrepresented. By fully leveraging Insight and Data and building a
bespoke Media business, we are focused on providing the services
and products that matter to our customers, while, at the same time,
moving Saga to a business with high customer engagement and a
higher purchase frequency.
"This is a plan that is already well underway and is accelerated
today with the launch of Saga Exceptional. Through this exciting
new website and the wider media strategy, we will be engaging daily
with our customers, providing them with reviews, stories and
content which matter and is tailored for them.
"I am confident that this approach will enable us to build on
the progress made across our existing businesses and will position
us for a step-change, ensuring we are positioned to deliver
sustainable long-term growth and value for all our
stakeholders."
The Capital Markets Event is for institutional investors and
analysts and is being held at 3.00pm today in London. If you would
like to attend, please email saga@headlandconsultancy.com . There
will also be a live webcast, with registration available at
www.investis-live.com/saga-group/63b6c964d426f40c0004b5ff/scme . A
recording, alongside the presentation slides, will be available
shortly after the event at
https://corporate.saga.co.uk/investors/results-reports-presentations/
.
Separately, today, Saga has issued a Trading Update covering the
period from 1 August 2022 to 23 January 2023. This shows the Group
is on track to report an Underlying Profit Before Tax of between
GBP20m to GBP30m, in line with previous guidance and analyst
expectations.
For further information, please contact:
Saga plc
Euan Sutherland, Group Chief Executive Officer
James Quin, Group Chief Financial Officer
Emily Roalfe, Head of Investor Relations and Treasury Tel: 07732 093 007 Email: emily.roalfe@saga.co.uk
Headland Consultancy
Susanna Voyle Tel: 07980 894 557
Will Smith Tel: 07872 350 428
Tel: 020 3805 4822
Email: saga@headlandconsultancy.com
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