OFX Group (ASX: OFX) expects income growth momentum in FY24 to continue as Q1 operating income jumps 26%

Highlights 

• OFX Group provides money transfer and foreign exchange services across more than 50 countries 
• In the first quarter of FY24, the company reported 25.5% growth in net operating income 
• Selector Funds Management Limited has the highest stake in OFX, with a shareholding of around 11.36% 

OFX Group Limited (ASX:OFX) is a Sydney-based global money service provider which operates in nine countries. The company offers foreign exchange and money transfer services to enterprise, consumer and corporate clients across 50 countries. 

In the financial year 2023, the company recorded a 45.6% YoY surge in net operating income to AUD 214.1 million and a 25.6% increase in statutory NPAT to AUD 31.4 million. The net operating income growth momentum continued in FY24 with a 25.5% YoY increase during the first quarter of FY24. 

During the stated period, the company witnessed growth in revenue across all regions, integration of Firma and significant margin management. Firma exceeded the company’s expectations as it delivered double-digit growth in net operating income. 

In July 2023, the company closed the acquisition of Paytron. 

Top 10 shareholders of OFX 

The top 10 shareholders of OFX have nearly 54.85% of the shareholding in the company, while the top four have 31.67% shareholding. Selector Funds Management Limited and Australian Ethical Investment Ltd. have the highest stake in the company, with a shareholding of ~11.36% and ~7.83%, respectively. 

Recent business update 

Through an ASX filing dated 29 September 2023, the company informed about the appointment of Rebecaa Blair as senior legal consultant and assistant company secretary. This development follows the resignation of Brett Farrell as the company secretary. 

On 4 September 2023, the company informed that the voting power of National Nominees Ltd ACF Australian Ethical Investment Limited in OFX increased to 7.72% from 6.34%, effective from 31 August 2023. 

Outlook 

In FY24, the company expects to deliver net operating income of AUD 225-243 million and core underlying EBITDA of AUD 63-74 million, excluding Paytron. 

The company continues to focus on expanding target geographies and segments, generating synergy from acquired entities like Firma and investing in the single global platform of OFX. 

Share performance of OFX 

OFX shares closed 5.602% down at AUD 1.685 apiece on 16 October 2023 with a market capitalization of AUD 443.79 million. With this, OFX’s share price has dropped by 34.44% in the past 12 months and has declined by 13.60% in the past one month. 

The 52-week high of OFX is AUD 2.91 apiece, recorded on 8 November 2022, and the 52-week low is AUD 1.375 apiece, recorded on 20 April 2023. Worth noting here is that OFX’s today’s closing price is 42.10% lower than its 52-week high. 

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 16 October 2023. The reference data in this report has been partly sourced from REFINITIV. 

Disclaimer 

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