Openpay Group (ASX:OPY) hits one-month low despite an impressive Q1 FY2021

  • October 29, 2020 07:12 PM AEDT
  • Kunal Sawhney
    CEO Kunal Sawhney
    2781 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Openpay Group (ASX:OPY) hits one-month low despite an impressive Q1 FY2021

Summary

  • Despite delivering a robust performance in Q1 FY2021, the market response was tepid with Openpay share price declining on 28 October.
  • On 29 October 2020, Openpay shares hit a one-month low though the stock recovered and closed 1.465% higher.
  • In Q1, the Group reported record growth across top indicators of Active Plans, Active Customers and TTV as a result of strong customer demand and the developing UK business.
  • OPY’s active customers grew by 145% and active merchants by 35%.
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Payments tech player Openpay Group’s shares have dropped significantly in the last three months with a negative return of 19.94%. Despite impressive Q1 FY2021 results reported by the Company on 28 October 2020, the shares fell 2.151% and settled at A$2.73. On 29 October 2020, the shares hit a one-month low before bouncing back and settling 1.465% higher at A$2.770. The Company has a market cap of 294.86 million and ~107.868 million outstanding shares.

About the Company

Openpay Group is a popular BNPL (Buy Now Pay Later) Company that flourished during the COVID-19 pandemic period. Openpay is an omni-channel payment solution that offers its customers with flexible, interest-free payment plans through in-store, Openpay App and online.

The Company’s services are available in Australia, New Zealand, and the UK across industries such as retail, healthcare, automotive, home improvement and many more.

Q1 FY2021 Business Update

On 28 October 2020, Openpay Group Ltd (ASX:OPY) released its quarterly business update for Q1 FY2021 ended 30 September 2020. The Company reported record growth across top indicators of Active Plans, Active Customers and TTV as a result of strong customer demand and the developing UK business.

  • Active Plans increased by 235% to reach 1,060k as compared to the previous corresponding period.
  • Active Customers grew 145% to 372k.
  • Active Merchants were up 35% on pcp at 2,279. The growth represents the continuous focus on large enterprise merchants, adding to above-average Active Plans plus growth in the total transaction volume (TTV).
  • Openpay UK business momentum has grown up considerably with 59% growth in the UK Active Plans to 297k. The UK business contributes 28% of all Active Plans as at Q1 FY2021.
  • UK Active Customers contributed 82% of the entire new Active Customers growth for Q1 FY2021.
  • Total Transaction Value improved by 95% to A$68 million on pcp.
  • Revenue during the period was A$6.2 million, up 68% on pcp. OPY maintained consistently strong gross revenue yields and net transaction margins.
  • During the period, the Company won big merchants in Australia across verticals with major retailers like Kogan, Dick Smith and Matt Blatt. MSL Solution and Stack Sports further set OPY’s hard launch into the Membership vertical.

INTERESTING READ: BNPL Corner: Openpay Delivers Substantial August Numbers, Zip Co Director Quits

 


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