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Highlights

  • OFX Group is an international payments and foreign exchange services provider.
  • The company registered a 45.6% YoY surge in net operating income and a 40.3% YoY increase in underlying EBITDA in FY23
  • Selector Funds Management Limited has the highest shareholding in the company with a stake of nearly 11.36%.

OFX Group Limited (ASX: OFX) is an ASX-listed financial services company that offers online payment and foreign exchange services globally to consumer and business clients. The company operates through its offices in San Francisco, Toronto, Hong Kong, Singapore, Auckland, Sydney, Dublin and London.

In the financial year 2023 (FY23), the company reported a more than 17% YoY surge in turnover to AUD 39.1 billion, 45.6% YoY increase in net operating income to AUD 214.1 million and 40.3% YoY increase in underlying EBITDA to AUD 62.4 million.

Factors like margin management, growth in revenue across all regions and integration of Firma drove the yearly performance. Also, the period witnessed continuous investment and the introduction of new services and features on the company’s international platform.

During the first quarter of FY24, the company registered a 25.5% YoY increase in net operating income. The period saw a rise in revenue across all regions, including a 6.1% YoY increase in APAC, a 4.5% YoY increase in North America and a 34.3% YoY increase in EMEA.

The company intends to expand its services for B2B clients, and in line with this, it finalized the Paytron Holdings Pty Ltd acquisition in July 2023.

Top 10 shareholders of OFX

The top 10 shareholders of OFX have more than 54.83% shareholding in the company, while the top four have nearly 31.65% holding. Selector Funds Management Limited and Australian Ethical Investment Ltd. have the highest stake in the firm, with a shareholding of ~11.36% and ~7.82%, respectively.

Recent business update

Through a recent ASX update dated 1 September 2023, the company informed that it would be added to the S&P/ASX All Technology index (INDEXASX: XTX), effective from 18 September 2023 (before the market opens). 

Outlook

For FY24, the company anticipates net operating income of AUD 225-243 million and underlying EBITDA of AUD 63-74 million. The estimate does not include contributions from Paytron.

OFX is committed to growing its B2B client base, improving risk assessment capabilities and introducing new features and services on its international platform.

Share performance of OFX

Shares of OFX closed 1.96% up at AUD 1.82 apiece on 11 September 2023. Including this gain, OFX stock price has dropped by 33.09% in the past one year and increased by 1.11% in the last six months.

The 52-week high of OFX is AUD 2.91 apiece, recorded on 8 November 2022, and the 52-week low is AUD 1.37 apiece, recorded on 20 April 2023. Noteworthy here is that the existing share price is nearly 38% lower than its 52-week high.

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

 

Note 2: The reference date for all price data, currency, is 11 September 2023. The reference data in this report has been partly sourced from REFINITIV.