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Highlights:
- hummgroup 2022 third quarter volume shoots up 31.5%, commercial and leasing volumes skyrocket 93.6% as compared to last year.
- humm Consumer Finance volumes impacted by falling consumer sentiment and travel spend slowdown.
- The company reported total transaction volume of AU$871.1 million in this quarter.
Diversified finance and BNPL services provider, Humm Group Limited (ASX:HUM) announced its Q3-22 unaudited financial statements on the ASX today (4 May).
As per the announcement, hummgroup has achieved a volume growth of 31% on the prior corresponding period (pcp). A volume growth of a mind boggling 93.6% was also marked in its commercial and leasing segment. However, hummgroup’s consumer finance volumes in Q3-22 remain crippled due to slower than expected travel spend return and a declining consumer sentiment.
Meanwhile, on the ASX, HUM is spotted trading tad lower at AU$0.810 a share in the early trade hours (10:30 AM AEST).
Key Highlights from Humm Group Limited’s Q3-22 update
- The finance provider has reported a volume growth across business segments in Q3-22.
Image source: © 2022 Kalkine Media ®
- As a result, the group net loss was 30bps lower on a pcp basis in Q3-22.
- Humm Group’s total customers got reduced in comparison to December 2021 because of the runoff in legacy cards and retail leasing products.
- However, in the BNPL segment the customer numbers continued to grow in the quarter.
- In the reported quarter business was majorly driven by strong momentum in the Australian commercial business where a strategic shift to targeted small to medium enterprise equipment lending saw strong demand.
Management Commentary
According to Rebecca James, CEO, Humm Group Limited, despite a period-on-period growth the Humm consumer finance volumes got impacted by a slower than anticipated travel return, declining consumer sentiment and the widespread flooding in the Australian east coast. Floods directly impacted solar installations which are a key vertical Humm Group’s ‘Big Things’ offering. The main business driver according to her was its commercial and leasing business that continued its strong performance, delivering record volumes in the quarter.
What else changed at Humm Group Limited?
Humm Group Limited, on 18 February, had announced signing of a binding, definitive agreement to sell its HCF business to Latitude Group (ASX:LFS). The aggregate consideration agreed for sale of HCF was of AU$335 million.
Even after sale of consumer finance business, Humm Group will continue as owner of its commercial business- flexicommercial; an ASX-listed company. According to Humm Group’s board flexicommercial is well positioned for continued growth.
HUM share price performance
On the ASX, as of date, shares of Humm Group Limited trade at a market capitalisation of AU$403.64 million. HUM share price trades in the 52-week range of AU$0.715 to AU$1.140 a share with an average trade volume of over 1.63 million shares.
Talking about distributions, as of date, Humm Group Limited has an annual dividend yield of about 2.08%. Its last dividend payment as per the ASX website was of AU$0.017 apiece and HUM shares went ex-dividend on 28 February 2022.
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