Why are shares of MoneyMe (ASX:MME) trading high today?

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Why are shares of MoneyMe (ASX:MME) trading high today?

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 Why are shares of MoneyMe (ASX:MME) trading high today?
Image source: © Sevaljevic | Megapixl.com

Highlights

  • MoneyMe increased its external securitisation funding facilities to AU$1.65billion, with an undrawn capacity of AU$388 million
  • Accomplished term securitisation of AU$200 million
  • In the March quarter, MME’s gross customer receivable surged 398% compared to pcp

Shares of MoneyMe Limited (ASX:MME) are trading in the green today (2022-07-01 10:56 AM AEST) with a gain of over 22%. The gain in the share price follows a key update from the company on its funding platform.

MoneyMe is a digital financial service company. It provides prompt and easy credit products to tech-savvy Australian customers and businesses. It utilises Artificial Intelligence and advanced cloud-based technology to provide speedy and flawless customer experiences.

Following are the key updates from the funding platform of the company

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The first term securitisation of MONEYME personal loan customer receivables was completed on 30 June 2022. Significant points from the transaction are:

  • A term securitisation of AU$200 million
  • Private placement with three leading Australian investors
  • Frees up a funding capacity of about AU$200million in warehouses of MONEYME

According to Clayton Howes, MONEYME’s Managing Director and CEO, the company’s undrawn securitisation funding capacity of AU$388 million, backed by a decline in the cost of funds margin, further places it in a better spot in a rising interest rate scenario and in an environment with gradually competitive funding.

He further quoted, “We remain focused on executing our strategy: profitable growth, innovation, maintaining the quality of our loan book, and efficiency and accuracy in credit decision making thanks to our proprietary lending technology platform.”

In June, transaction and savings accounts were introduced by MME for its SocietyOne customers, driven by Westpac’s BaaS (Banking-as-a-Service).

MoneyMe acquired SocietyOne in March 2022, creating an AU$1.2-billion loan book on 31 March 2022. Further, it substantially increased its customer base.

In the quarter ended 31 March 2022, MoneyMe reported excellent results. Let us have a look

  • 141% growth in revenue compared to the previous corresponding period (pcp)
  • 94% increment in contracted revenue compared to the previous quarter
  • Gross customer receivable surged 398% compared to pcp

Stock information

MoneyMe has a market capitalisation of AU$135.57million. At the time of writing this article, shares of the company were trading at AU$0.700, with a gain of AU$0.130 (22.807%).

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