OFX Group (ASX: OFX) expects 2FHY24 to be better than 1HFY24

4 min read | November 30, 2023 03:49 PM AEDT | By Team Kalkine Media

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OFX Group (ASX: OFX) expects 2FHY24 to be better than 1HFY24 — Image source: KOSOL PHUNJUI, Shutterstock

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Highlights

OFX Group is an international payment service provides with presence in nine countries

The company had bought back 117,224 shares from the market on 29 November 2023

Today, OFX shares closed 1.41% up at AUD 1.435 apiece

OFX Group Limited (ASX:OFX) is an ASX-listed international payment service provider. The Sydney-based firm offers its services across 50 countries to enterprise, consumer and corporate clients. With a presence in nine countries, the company primarily deals in money transfers and foreign exchange services.

In the first half of the financial year 2024 (1HFY24), the company witnessed a 9.3% YoY growth in net operating income (NOI) to AUD 115.1 million, backed by growth in the B2B segment across all regions and return of certain high-value use cases in the B2C segment. Growth in NOI was also underpinned by interest income of AUD 4.3 million and good pricing actions.

During the reported period, the company registered a 5.3% YoY rise in statutory NPAT to AUD 15.8 million and a 7.2% YoY increase in corporate revenue annually to AUD 63.4 million.

Recent business update

Today, the company informed that it had bought back 117,224 shares from the market on 29 November 2023.

Through an ASX filing dated 17 November 2023, the company shared that it had issued 70,688 performance rights on 15 November 2023 under the employee incentive scheme.

Top 10 shareholders of OFX

The top 10 shareholders of OFX have around 13.76% shareholding in the company. The highest stake is held by Pendal Smaller Companies, with a shareholding of nearly 2.85%.

Outlook

The company expects to deliver improved earnings in the second half of current financial year(2HFY24), compared to 1HFY24, considering the AUD 3.7 million escrow payment realized in 1HFY24. The expectation is based on the following factors:

With the return of corporate confidence, the Canadian Corporate ATVs continue to increase
Canadian Corporate margins going back to historic levels
The growth in corporate registrations is maintaining the momentum in the B2B segment
The company expects strong interest income and strong pricing

Share performance of OFX

OFX shares closed 1.41% up at AUD 1.435 apiece on 30 November2023. Including this, OFX shares have marked a drop of 41.19% in the past one year and a fall of 17.05% in the past three months.

The 52-week high of OFX is AUD 2.5, recorded on 6 December 2022, while the 52-week low is AUD 1.325, recorded on 14 November 2023.

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 30 November 2023. The reference data in this report has been partly sourced from EODHD/Others.

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