Join our daily newsletter At The Bell to receive exclusive market insights
- Fintech company Humm Group (HUM) declares a 1.7-cent interim dividend for the first half of the 2022 financial year after tabling $27.8 million in cash net profit after tax
- It comes as Humm receives $220.7 million in total income over the six months to the end of December 2021 — a slight fall from the $223.8 million over the same time the year before
- However, while Humm increased volumes in most of its key business segments, the company posted a statutory net loss after tax of $168.3 million for the half-year
- Chief executive Rebecca James says Omicron caused subdued activity in the December quarter last year as consumer confidence slipped and delayed a return to in-store spending
- Shares in Humm Group are down 2.31 per cent to 84 cents each at midday AEDT
Fintech company Humm Group (HUM) has declared a 1.7-cent interim dividend for the first half of the 2022 financial year after tabling $27.8 million in cash net profit after tax.
It marks the first dividend payment since the start of the pandemic when global uncertainty and struggling economies saw Humm make the call to hold on to more of its cash.
Over the six months to the end of December 2021, Humm pocketed $220.7 million in total income — a slight decrease from the $223.8 million received over the same time the year before.
This came despite solid performances from Humm’s key business segments.
The company’s buy now, pay later (BNPL) arm grew segment volume by 37.7 per cent compared to the prior corresponding period to $651.1 million, though high costs associated with planned international expansion meant the BNPL segment posted a cash net loss after tax of $9.7 million.
Meanwhile, Humm’s Australia Cards business grew volume by 11.5 per cent to $223.9 million, with New Zealand Cards volume largely flat at $359.2 million.
Humm doubled Commercial and Leasing volume to $432.8 million, with cash net profit from this business up 2.7 per cent to $15.3 million.
Still, for all its volume growth, Humm Group posted a statutory net loss after tax of $168.3 million for the first half of the 2022 financial year.
Humm chief executive Rebecca James said the spread of Omicron saw some subdued activity in the December quarter last year as consumer confidence slipped and delayed a return to in-store spending.
“The ongoing impact of COVID-19 resulted in softer segmental Cash NPAT, reflecting changes in receivables mix, accelerated paydowns across our cards portfolio, and the investment necessary to position Hummgroup Consumer Finance (HCF) for the future,” she said.
She added that the company had continued to invest in a planned overseas expansion and some key new products and partnerships.
“Our Commercial and Leasing segment performed strongly during the half. Following the successful shift in strategic focus towards SME lending via the broker channel, it was pleasing to see volumes up over 100 per cent on the prior comparable period, resulting in double-digit Cash NPAT growth.”
Humm Group said it ended December with roughly $132 million in unrestricted cash, up 149 per cent compared to the year before. The company started the new year with no corporate debt.
Today’s financial report followed an announcement from the company that it would be selling its HCF business, which includes its BNPL arm, to Latitude Group (LFS) for $335 million.
Shares in Humm Group were down 2.31 per cent to 84 cents each at midday AEDT. The company has a $418 million market cap.
