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- Global payment service OFX Group has weathered some less-than-favourable figures for the first half of the 2020 Financial Year
- Despite this, the company continues to trade in the green on the Australian market today — briefly spiking to $1.43 per share from a 3.64 per cent premium
- During the half-year period, the company saw revenue grow in North America by 19 per cent but experienced a devalued business turnover from a five per cent decrease
- As well, transactions per client and in total grew 9.3 per cent and 5.2 per cent respectively — but average values of transactions fell 9.3 per cent across the board
- At 5:00 pm AEDT, shares in OFX are trading for a smaller premium of 0.73 per cent for $1.39
Despite some lowered numbers in the first half of the financial year, payment service OFX Group finds a way to boost its share price.
Paired with significant growth in corporate and North America, OFX has traded in the green today.
“Revenue in North America, our key growth market was up 19 per cent and in our corporate business we grew revenue over 9 per cent, despite global spot volumes declining by 14 per cent,” Chief Executive Skander Malcolm said.
“This was a solid result in what has been a difficult global economic environment,” he said.
Shares in OFX on the Australian market spiked in early trade today at a 3.64 per cent premium for a $1.43 listing.
However, this growth contrasts with some less than favourable figures for the company. Business turnover showed a five per cent decrease on the year for $11.5 billion.
As well, transactions per client and in total grew 9.3 per cent and 5.2 per cent respectively — but average values of transactions fell 9.3 per cent across the board.
“This resulted in net operating income [NOI] being slightly down due to higher proportional transaction costs, despite a record second quarter for both NOI and revenue,” Skander said.
“We continued to maintain discipline on promotional spend while driving significant improvement in the cost of winning and converting new clients,”
OFX currently provides its payment services to an array of large-scale clients; in Sydney, Auckland, Hong Kong, Singapore, London, San Francisco, and Toronto.
Clients through the company’s corporate sector grew four per cent during the financial year half.
Skander says this will represent a strong second half to the financial year.
“All have progressed and we are set to benefit from these investments in the second half of FY20 and beyond.”
In the meantime, OFX will be enjoying a high-scale exclusive agreement with a new client.
“We also won our first major new Enterprise partner during the half with an exclusive agreement with Link Market Services Ltd.,” Skander said.
“OFX will become Link’s preferred partner in Australia for international payments such as dividends for its substantial base of offshore investors.”
Skander commented that business with Link is scheduled to officially launch at the end of the financial year.
“As we execute in the second half, our growth priorities are clear.”
Shares in OFX spiked in early trade on the Australian market today, but are now trading at a smaller 0.73 per cent premium.
OFX shares are valued for $1.39 at 5:00 pm AEDT.
