The OFX Group Ltd (ASX: OFX) share price is up more than 7% after announcing its FY19 result.
OFX is a global provider of online international payment services for consumers and businesses. It has been operating since 1998 when it was launched in a garage in Sydney as an information-only website.
The foreign exchange business said that it achieved foreign exchange turnover of $23.7 billion, which was 11.9% higher compared to FY18. The number of transactions rose 8.8%, the average transaction value increased by 2.8% to $22,600 and transactions per active client increased by 12.6% to 6.7. It had 156,500 active clients at the end of the period.
Fee and trading income was up 8.2% to $128.7 million with corporate growth of 10% in all regions. Net operating income increased by 8% to $118.7 million.
OFX said that underlying EBITDA (click here to learn what EBITDA means) excluding ‘corporate action costs’ went up by 8.1% to $32.2 million. Underlying EBT also went up 6% to $26.4 million.
However, statutory net profit after tax (NPAT) fell by 5.8% to $18.7 million with corporate action costs of $4.3 million.
OFX said that because of softer markets in the second half, particularly in the final quarter, the company pulled back on marketing leading to a slowing of revenue growth and the company did not see growth of customers.
The OFX Board declared a final dividend of 3.28 cents per share, which was an increase of almost 10% compared to the final dividend a year ago.
OFX Management Comments
OFX CEO Skander Malcolm said: “We saw revenue growth in all our regions with Australia and New Zealand up 5%, North America and Asia up 20% and 19% respectively, and Europe up 12%.”
OFX is going to try to further diversify its revenue by accelerating growth in its Corporate business and investing in customer experience.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.