AUS
NZ
UK
CA
USA
IND
Highlights
- OFX Group sees a slight increase in corporate revenue in 1HFY25, despite declines in the Net Operating Income (NOI) and underlying EBITDA.
- The company is committing an additional AUD 1 million to expand its new client platform in Canada and the UK.
OFX Group Limited (ASX:OFX) is a specialist in cross-border payments and offers foreign exchange and money transfer services in over 50 currencies across nine countries.
In the six months ending 30 September 2024 (1HFY25), OFX saw a 3.5% YoY increase in corporate revenue, reaching AUD 69.4 million. This growth was largely driven by the launch of the company’s new corporate platform in June 2024. However, the company’s Net Operating Income (NOI) declined by 3.5% YoY in 1HFY25, from AUD 115.1 million in H1FY24 to AUD 111.2 million in H1FY25. The drop was attributed to lower Average Transaction Values (ATVs) in the UK and Canadian Corporate segments, coupled with softer consumer confidence in the Australian market.
Despite the overall decline in NOI, OFX managed to reduce its operating expenses by 1.4% YoY, bringing them down to AUD 82.1 million.
Underlying EBITDA declined by 8.81% YoY during the reported period from AUD 31.8 million in H1FY24 to AUD 29.0 million in H1FY25.
Outlook for FY25
OFX remains optimistic about the second half of FY25. The company anticipates a rebound in market conditions and is expecting enhanced client activity which is likely to drive stronger performance. It is also investing an additional AUD 1 million to expand its new client platform in Canada and the UK, building on the platform's early success.
The company is confident in maintaining an EBITDA margin of around 28% for the second half of the year. Furthermore, OFX continues to focus on its long-term growth objectives, aiming for annual NOI growth of more than 15% and maintaining an underlying EBITDA margin of approximately 30%.
Recent business update
Through an ASX update dated 21 January 2025, the company notified that 162,192 ordinary shares were bought back from the market on 20 January 2025 as part of the ongoing share buyback program which began in July 2024.
Share performance of OFX
OFX shares closed 1.86% higher at AUD 1.37 per share on 21 January 2025. Over the past year, OFX’s share price has dropped by almost 9.87% and in the past one week, it has increased by nearly 4.58%.
52-week high of OFX is AUD 2.39, recorded on 14 October 2024 and 52-week low is AUD 1.20, recorded on 17 October 2024.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 21 January 2025. The reference data in this report has been partly sourced from EODHD/Others.
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