AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
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RUS
CHN
UAE
Highlights:
- Zip share price was quoted 6% strong on ASX today (5 October 2022).
- However, in last one year, Zip share price has dropped 88.57%.
- And in last five years, Zip shares have managed to mark a meagre gain of 15%.
Shares of Australian diversified financial company, Zip Co Limited (ASX:ZIP) have been under significant selling pressure lately. In last one month, Zip share price has declined 10.24%, and in six months, it has slumped 51.94%. On a year-to-date basis, the share price has dropped 82.79%. The yearly fall is 88.57%.
Talking about today’s share performance, Zip shares were trading 6% up at AU$0.74 per share at 12:05 PM AEDT. Meanwhile, the benchmark index, ASX 200 financials (INDEXASX:XFJ) was up 2% to 6,152.40 points. ASX 200 gained 106.80 points to 6,806.10 points around the same time.
What’s happening in Zip?
- Zip has been removed from ASX 200 index recently as a part of the September quarterly
- On 25 August 2022, Zip shared its financial results for the period ending 30 June 2022 (FY22). During the year, the company reported a 57% rise in group revenue, 51% growth in transaction volume, an 80% surge in transaction numbers, 56% growth in customer numbers, 77% increase in merchant numbers and a 12% rise in cash gross profit.
- The company registered a 250% growth in cash EBITDA in the Australian market.
- On the date of the release of the FY22 results, Zip’s share price fell from AU$0.97 apiece (on 24 August 2022) to AU$0.95 apiece (on 25 august 2022).
- Back in July 2022, Zip shared via ASX announcement that the proposed acquisition of Sezzle by Zip has been terminated mutually. On 28 February 2022, Sezzle and Zip entered into a definitive agreement to buy Sezzle by way of a statutory merger. Under the agreement, the implied value of sizzle was around AU$491 million (as mentioned in the announcement). Upon the completion of the transaction, Zip would have had 78% ownership of the combined company, and Sezzle would have possessed 22% of the ownership.
Zip's priorities in FY23
In FY23, the company prioritises growing in its core markets – US, Australia, and New Zealand. It intends to grow via deeper customer engagement, review and reprice merchant agreements and win profitable merchant partnerships.
Zip is expected to prioritise reduction in global cost base through the closure of UK and Singapore business, streamlining operations, decreasing the third party spend and finish ‘wind-down of low margin product lines.’
Also, the company would prioritise improvement in unit economics through network income growth, enabling lower-cost repayment options and increasing repayment velocity.
