OFX Group Limited’s Shares Tumbled 6 Percent On ASX After Announcing First Half Results Of FY 2019

  • Nov 20, 2018 AEDT
  • Team Kalkine
OFX Group Limited’s Shares Tumbled 6 Percent On ASX After Announcing First Half Results Of FY 2019

On 20 November 2018, OFX Group Limited (ASX: OFX) announced its results for 6 months ended 30 September 2018, following which the share price of the company decreased by 6.0 percent as on 20 September 2018.

The company reported that as at 30 September 2018, the company’s revenue from ordinary activities was at $65.63 million which was an increase of 12 percent as compared to the previous corresponding period. The net profit for the period attributable to members increased by 13 percent to $9.36 million and earnings per share of the company increased from 3.45 cents in H1 2018 to 3.89 cents in H1 2019. The company reported that Strong fee and trading income growth across all regions delivered an increase of 11.6% to Net Operating Income (NOI) in the First half of FY 2019. 

In the first half of FY 2019, Australia and New Zealand were the highest contributors to fee and trading income and fee and trading revenue in this region increased by 11%, delivering on a commitment to reactivate the Australian business. The company also experienced growth in European business with fee and trading revenue increasing by 13% driven by strong performance in the Corporate book. During the first half of FY 2019, the e-money license was obtained in the UK allowing the company to hold customer funds and launch the Global Currency Account in the UK.

The company also witnessed significant growth in its North American business as Fee and trading revenue from that region increased by 18% in the first half driven by continued investment in additional resources and promotional activity. The Fee and trading revenue in Asia increased by 29% in the first half of FY 2019. The company started operations in its Singapore office on 1 April 2018 and invested additional resources and promotional activity to drive growth in this region.

In the first half of FY 2019, the company generated $15.8 million worth of cash and made a capital expenditure of $4.1 million to enhance the customer experience and reliable, scalable systems. The company is expecting that the EBITDA in the second half of FY 2019 will be stronger than the second half of FY 2018 with stable margins. Further, the board declared an interim dividend of 2.64 cents per share with an ex-dividend date of 27 November 2018 and payment date of 14 December 2018.

In the last six months, the share price of the company increased by 9.29 percent as on 19 November 2018. OFX’s shares traded at $1.880 with a market capitalization of circa $496.52 million as on 20 November 2018 (AEST 4:00 PM).


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