Splitit Payments Ltd (ASX: SPT) operates as an open banking payment platform. The Company focuses on card payment, debit solutions, money transfer, and other related activities. Splitit Payments serves customers in Australia.
The company, today on 25 March 2019, has come out with its annual presentation. As per the same, in comparison with FY17, the company for the year FY18 saw a 293% rise in a total number of unique shoppers due to the fact that it has got more live merchants in many countries. The average order value of Splitit users increased by 15% during 2018 merchants with higher average ticket items were added. Splitit also saw a 117% increase in its total active merchants which was primarily driven by sales efforts to sign more merchants. The culmination of these factors resulted in a 253% increase in underlying merchant transactions, generating an increase in merchant fees of 203%.
As regards the outlook for 2019, Splitit’s solution is currently utilised in 27 countries. The company will accelerate its merchant acquisition strategy and has thus identified many target countries to focus its sales and marketing efforts, including the US, Canada, UK, Italy, Singapore and Australia. Going forward, the company will focus on the following industry verticals: Medical, High-End Fashion, Sports Equipment, Homegoods, Travel & Leisure.
It will Continue to invest and build strong partnership networks with eCommerce platforms, payment processors, technology services and point of sale providers, banks and large multinational corporations. The company will be investing further in platform innovation by developing new advanced product features; also it will continue to promote financial freedom and responsible spending for every lifestyle.
Further, during the financial year, the Company progressed and finalised its initial public offering prospectus and application to list on the Australian Securities Exchange (ASX). On 29 January 2019, Splitit successfully completed its listing on ASX, raising AUD$12 million (before costs).
The Company’s net loss after income tax was USD$4,642,975 via-a-vis USD$3,422,285 in FY 2017 and was made up of, sales income for the financial year which was USD$789,920, up from USD$260,409 in 2017. The sales income comprised predominantly the merchant fees. Gross profit on sales revenue increased by 561% to USD$389,793 vis-à-vis USD$58,914 in 2017. Operating expenses increased 29% to come in at USD$3,899,387 vis-à-vis USD$3,012,141 in 2017. The financing expenses increased by 141% to come in at USD$1,131,502 as compared with USD$468,409 incurred in 2017.
On the price-performance front, the company has posted returns of 53.33% over the past one month. At the time of writing (25 March 2019 AEST 04:00 PM), the stock of the company is trading at a price of A$ 1.105, down by 3.913% during the day’s trade with the market capitalisation of ~A$ 310.1 Mn. The stock opened the day at A$ 1.075, reached the intraday high of $ 1.145 and touched an intraday low of $ 1.045, with an average daily volume of ~ 3,684,955. It had a 52-week high price of $ 2.000 and a 52 weeks low price of $ 0.305, with an average volume of, 14,859,668 approximately.