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Laybuy (ASX:LBY) shares charged up on ASX post half yearly results

  • November 23, 2020 01:51 PM AEDT
  • Hina Chowdhary
    Director, Equities Research Hina Chowdhary
    1432 Posts

    Hina Chowdhary is the Director, Equity Research at Kalkine and has an extensive experience of about 15 years in the area of Research, which includes 5+ years in Equities Research particularly.She has earned a Master of Science degree from the renowne...

Laybuy (ASX:LBY) shares charged up on ASX post half yearly results

The Laybuy Holdings Ltd (ASX:LBY) share price has received another warm welcome on Australian Securities Exchange (ASX) after reporting significant growth in its FY21 half-year result to 30 September 2020. As on Monday 23 November 12:19 PM AEST its share price is quoted at AU$1.385.

Gold MTF non-AMP

New Zealand-based Laybuy provides a buy now, pay later (BNPL) product that is available to customers across New Zealand, Australia and the United Kingdom. A payment platform offers customers to split their repayments for purchases, both online and instore.

The BNPL leader in New Zealand is strongly focusing on its growth momentum in the UK region and Australia along with plans on expanding its network into other international markets.

Good Read: Laybuy launches digital BNPL card

Image Source: © Kalkine Group 2020

HY21 performance:

The Laybuy Holdings Ltd, a leading fintech company, announced that its FY21 first half results showcase gross merchant value (GMV) rose 167 per cent on the prior corresponding period to NZ$244.8 million. Annualised GMV is NZ$489.6 million as per records.

The UK market has given almost half of the annualised GMV, which is NZ$212.5 million. A whopping increase of NZ$196 million compared to a year ago.

Notably, the buy now, pay later company states its total group income is NZ$13.3 million, a rise of 151 per cent year on year. The growth reflects a 48 per cent rise in active merchants of 6,323. Laybuy’s active customer base increased substantially by 315,000 to 568,000.

On a positive note, its defaults reduced from 3 per cent of GMV a year ago to 2.5 per cent of GMV. It reported a hike in net transaction margin (NTM) of 448 per cent to NZ$4.1 million.

Hence the NTM is now 1.7 per cent in the first half of FY21 compared to 0.8 per cent in the same period last year.

The company also released a trading update saying that its GMV continued to rise in October by 164 per cent and November 175 per cent compared to the prior corresponding period. A significant number of 60,000 active customers are added in Laybuy’s system, along with more than 1,000 active merchants.

Also Read: New Kid in the Block! Laybuy Continues to Buzz Post Stellar IPO

Reasons for the growth:

Laybuy stated in the report that the key components pushing the growth in FY21 are

  • A robust increase in its merchant and customer base in UK
  • In New Zealand and Australia growth is mainly derived from increase purchase from existing customers and COVID-19 impact increasing buy now pay later penetration.

Laybuy’s Managing Director, Gary Rohloff, is pleased to announce the positive outcome of the company for the 1H FY2021.

The company is delighted to share the substantial progress they have made in line with the company’ growth strategy. Rohloff continued that the revenue increase of 151 per cent primarily derived because of the exponential growth in the UK market. The significant improvement in Net Transaction Margin also adds to the growing revenue.

Latest Update: Laybuy Fares Positively In July And August

Outlook:

BNPL giant Laybuy will continue its focus on growth, especially in the UK; however, its management observes the effects of coronavirus second wave hitting its key markets. The company recently launched a campaign which is expected to deliver strong results in the upcoming events such as Black Friday, Cyber Monday, and Boxing Day.

Laybuy will also enhance its platform to drive the growth and effectively meet the demand from the customers.

Interesting Watch: What is Fintech and how is the global Fintech market performing?

 

 


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