OFX Group Expanding With Corporate Growth Above 10% Across All Markets

  • Mar 20, 2019 AEDT
  • Team Kalkine
OFX Group Expanding With Corporate Growth Above 10% Across All Markets

OFX Group Limited (ASX: OFX) is into providing online services for international payment to consumer and business clients under a single global brand, OFX. At OFX, it offers bank beating exchange rates and have waived the OFX transfer fee for some transfers. The location of the company is 60 Margaret Street Level 19 Sydney, NSW, Australia.

The company today on 20 March 2019, has published the investor's presentation. The mission of the company is to become the trusted international money services provider by consumers and businesses, who value a seamless digital experience at a competitive price, with a personal and always on-support team. The company thrives on strategic growth pillars which includes growth drivers like client experience, geographic expansion and partnerships.

The trading updates include the corporate growth of the company growing above 10% across all markets. The US 2H19 HTD revenue up by more than 20%. The company has stable NOI margins ex-IPS. It also achieved active client growth in February for the first time in 10 months. The company has several opportunities in FY20 including investing in Corporate client experience and build enterprise client experience. It also continues to build a pipeline.

The company has a marketing mission involving new revenues, client engagement and brand distinctiveness. It has targeted acquisition via search and Google display network. Smart Display drove registrations and brand advocacy. It has continued focus on CPA efficiencies and diversification of media channels. On the client engagement front, CRM has delivered in consumer, increasing transactions and revenue from existing clients. The company implemented corporate automated journeys, combining excellent account management with automation as relevant. Moreover, it will introduce improved client experience via improvements in website, content and personalisation. The brand advocacy of the company is increasing with 68% of its clients recommending OFX to friends and family.

The CEO of the company Skander Malcolm said that the market conditions have been challenging compared to the previous year, on the back of lower levels of currency volatility and softer global spot transaction volumes. While active clients have not grown as much as anticipated, the company saw growth in February. The company outperformed the market in many respects, with corporate revenue up more than 10% across its markets and US revenue growth of more than 20%. OFX maintained steady NOI margins and are targeting positive operating leverage for the full year and expects the EBITDA for the full year to be between $30.9m and $32.0m.

On the price-performance front, the stock of OFX Group Limited is currently trading at $1.790 with ~7.254% decrease during the day’s trade, with a market capitalisation of $479.77 million (AEST 04:00 PM). The stock has generated a YTD return of 11.24% and returns of -2.53%, 8.43% and 6.04% over the past six months, three months and one-month periods, respectively. It had a 52-week high price of $2.470 and a 52-week low price of $1.595, with an average trading volume of ~ 560,188. The stock is trading at a PE multiple of 23.450x with an annual dividend yield of 2.92%.


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