Technology driven payments company, Afterpay Touch Group Limited (ASX: APT) has released its half-year results for FY 2019. For the half-year period, the company has reported underlying sales of $2.3 billion which is $1.4 billion or 147% higher than the previous corresponding period (PCP). The company reported pro forma EBITDA (excl. significant items) of $17.0 million and reported a statutory loss for the period of $22.2 million as the business continues to invest in technology, people and marketing to scale its operations internationally and in Australia.
In the half-year period, the company’s other expenses increased by 160% to $47.5 million as compared to PCP, driven by the company’s investment in people, processes, and systems particularly in the US and UK businesses.
At the end of December 2018, the company had more than 3.1 million active customers, up 118% on PCP. As on 22 February 2019, the company had around 3.5 million active customers. At the end of December 2018, the company had 23,200 active merchants, up 101% on PCP. As on 22 February 2019, the company had around 25,300 merchants. As per the company’s announcement, the company is on track to have attracted over 1 million active customers and 2,000 active merchants in the US by the end of March. For H1 FY19, the company reported total income of $116.1 million (pro forma), an increase of 91% on PCP.
In Australia & New Zealand, the company witnessed strong Growth in Australia & New Zealand especially its in-store business and among new verticals. Afterpay is now available in nearly 20,000 shopfronts across ANZ4, and the service is now available for dentistry, optometry and soon in radiology.
As at 31 December 2018, the company had a receivables warehouse funding facility totalling $500.0 million in Australia, a $49.7 million senior unsecured note in Australia (fully drawn) and an NZ$20 million revolving cash advance facility in New Zealand (fully undrawn) as well as $42.3 million of cash.
The company is expecting to spend at least an additional $10 million (pre-FX and accounting changes) in mid-term growth acceleration investment activities in the second half of FY 2019. This expenditure will relate to new key merchant co-marketing activities and an increase in fixed operating costs (mainly people).
Now, let’s have a glance at Afterpay Touch Group’s stock performance and the return it has posted over the last few months. The stock is currently trading at a price of $18.150, down by 11.463 % during the day’s trade with a market capitalization of ~$4.85 Bn as on 26 February 2019. The counter opened the day at $18.900, reached the day’s high of $20.00 and touched the day’s low of $17.800 with a daily volume of ~6,442,900. The stock has provided a Year Till Date return of 70.83% & also posted returns of -2.98%, 71.69% & 26.23% over the past six months, three & one-months period respectively. It had a 52-week high price of $23.00 and touched 52 weeks low of $5.260, with an average volume of 2,009,389 approximately.
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