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hummgroup (ASX:HUM) 1Q22 business update

Finance
ASX:HUM      MCAP $235.2M
22 October 2021 08:36 (AEST)
Humm Group (ASX:HUM) - CEO, Rebecca James

Source: Humm Group

hummgroup (HUM) is trading in the green following the company’s business update for the first quarter of the 2022 financial year.

The buy now, pay later (BNPL) player recorded a total transaction volume of $763.3 million in the three months to the end of September 2021, representing a 39.6 per cent increase on the prior corresponding period (pcp).

The company said the boost reflected the benefits of a diversified product portfolio, which had continued to gain momentum.

HUM’s total customers also increased 6.1 per cent over the quarter to 2.7 million.

Meanwhile, the company’s combined Australia and New Zealand Cards segments increased in volume by 7.6 per cent on the pcp to $249 million.

HUM’s net loss for the period grew by 9.3 per cent to $24 million, which the company said reflected growth in receivables.

hummgroup CEO Rebecca James said the company was pleased with growth momentum across the group, considering key markets were mostly in lockdown over the quarter.

“BNPL growth remains strong with humm ‘Little things’ in Australia up 157 per cent in the first quarter of 2022, which more than offset the smaller growth of three per cent in ‘Big things’, which was impacted by lockdowns,” she said.

“The company’s overall volume growth of 40 per cent highlights the advantages of our diversified portfolio offering products able to finance smaller and larger items seamlessly, for both consumers and small to medium enterprises.”

Earlier this week hummgroup announced pricing of $390 million of asset-backed securities, supported by a pool of fully amortising, secured commercial auto and equipment finance receivables, originated through flexicommercial.

Shares were up 0.55 per cent to 91 cents each at 2:08 pm AEDT.

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