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Highlights

  • OFX Group is an ASX-listed international payment specialist which offers money transfer and forex services across over 50 countries
  • In 1HFY24, operating income grew by 9.31% YoY to AUD 115.10 million
  • Selector Funds Management Limited has the highest stake in the firm with a shareholding of ~11.30%

OFX Group Limited (ASX: OFX) is an international payment specialist which offers money transfer and forex services across over 50 countries. The Sydney-based firm has a presence in nine countries and it mainly caters to enterprise, corporate and consumer clients.

The cross-border payments firm witnessed around 9.31% YoY rise in its operating income in the first half of the financial year 2024 to AUD 115.10 million, backed by B2B segment which showed continuous growth across all regions. Its B2C segment witnessed the return of some high-value use cases.

During the reported period, turnover dropped by almost 3.52% to AUD 19.20 billion, while statutory NPAT grew 5.33% YoY to AUD 15.8 million.

Top 10 shareholders of OFX

The top 10 shareholders of OFX have around 54.22% shareholding in the company, while the top four have around 31.15% shareholding. Highest stake is held by Selector Funds Management Limited and Australian Ethical Investment Ltd. with a shareholding of ~11.30% and ~8.81%, respectively.

Recent business update

Through an ASX update dated 5 April 2024, the company informed that 184,677 shares which were issued under its employee incentive scheme, will be available for trading on the ASX as the restriction on transfer have been ceased.

Outlook

The second half of FY24 is expected to deliver stronger results compared to first half because of realized escrow payment of AUD 3.7 million in 1H. The performance of 2H is expected to be driven by return of Canadian corporate margins to historic levels, continuous increase in Canadian corporate ATVs, momentum in the B2B segment and expectation of strong pricing and interest income. Moreover, high-value use cases in the B2C segment are expected to boost earnings.

The focus of OFX is on expanding its target geographies and segments, investing in single international platform to enhance clients value and broadening its B2B proposition via integrating Paytron.   

Share performance of OFX

OFX shares closed at flat AUD 1.485 apiece on 16 April 2024. With this, OFX’s share price surged by 1.71% in the last 12 months and has fallen by 10.81% in the past six months.

The 52-week high of OFX is AUD 2.20, recorded on 24 July 203, while the 52-week low is AUD 1.325, recorded on 14 November 2023.

OFX Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 16 April 2024. The reference data in this report has been partly sourced from REFINITIV.