Image source: Pixabay

Highlights

  • OFX is an ASX-listed firm which provides online international payment services to business and corporate clients
  • In 1HFY24, the net operating income of OFX increased by 9.3% YoY to AUD 115.1 million
  • The company expects the second half of FY24 to be stronger than the first half

OFX Group Limited (ASX: OFX) is a global money services provider which offers foreign exchange and money transfer services across 50 countries to enterprise, consumer and corporate clients. The ASX-listed firm has a presence in nine countries.

The AUD 390.34 million-market-cap company is exposed to risks arising from industry competition, increasing interest rates, forex volatility and regulatory challenges.

Financial performance

In the first half of the financial year 2024 (1HFY24), the company registered a 9.3% YoY rise in its net operating income to AUD 115.1 million and a 5.3% YoY increase in statutory NPAT to AUD 15.8 million. During the reported period, the company witnessed continuous growth in its B2B segments across all regions and a return of some high-value use cases in its B2B segment.

Half-yearly performance was driven by escrow payment, interest income and good pricing actions.

Recent business update

Through an ASX-filing dated 28 December 2023, the company informed National Nominees Ltd ACF Australian Ethical Investment Limited has increased its voting power in the firm to 8.73% from 7.72%, as on 21 December 2023.

Outlook

In FY24, the company expects to report NOI of AUD 225-238 million and underlying EBITDA of AUD 63-70 million. Moreover, the company expects the second half of FY24 to be stronger than the first half.

For FY24, the company’s focus is on  capital management, B2B go-to-market excellence, margin expansion and expansion of target geographies and  segments. 

Share performance of OFX

OFX shares closed 3.18% down at AUD 1.52 apiece on 3 January 2024. With this, OFX’s share price dropped by 35.32% in the last one year and has increased by 8.96% in the last one month.

The 52-week high of OFX is AUD 2.46, recorded on 12 January 2023, and 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 03 January 2024. The reference data in this report has been partly sourced from REFINITIV.