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Highlights

  • OFX Group is an ASX-listed international money service provider, which caters to corporate, consumer and enterprise clients
  • In 1HFY24, the company delivered 9.4% YoY increase in net operating income to AUD 115.1 million
  • In FY24, the company expects to deliver net operating income of AUD 225-238 million

OFX Group Limited (ASX: OFX) is a global money service provider which offers money transfer and foreign exchange services in over 50 currencies. Established in 1998, the Sydney-based firm mainly caters to corporate, consumer and enterprise clients.

Financial performance

In the first half of the financial year 2024 (1HFY24), the company recorded a 3.3% YoY rise in the fee and trading income to AUD 114.6 million, while its net operating income (NOI) increased by 9.4% YoY to AUD 115.1 million. The growth in net operating income was driven by good pricing actions, AUD 4.3 million interest income and payments associated with the Firma acquisition.

During the reported period, the company reported a 4.9% YoY rise in statutory NPAT to AUD 15.8 million.

The period saw continuous growth in its B2B segment across all the regions.

Top 10 shareholders of OFX

The top 10 shareholders of OFX have around 54.88% shareholding in the firm, while the top four have nearly 31.69% shareholding. The top two shareholders in the company areSelector Funds Management Limited and Australian Ethical Investment Ltd. with a shareholding of ~11.36% and ~7.83%, respectively.

 

Recent business update

Through an ASX-filing dated 16 November 2023, the company shared that Douglas Snedden has acquired 50,000 shares of OFX for a consideration of AUD 71,957.04. With this, Snedden’s indirect interest in the company has increased through registered holder, Nuday Pty Limited as trustee for the Snedden Family Superannuation Fund. The change came in effect on 15 November 2023.

Outlook

The company expects the second half of 2024 to be stronger than the latest half. In FY24, NOI is expected to reach AUD 225-238 million and underlying EBITDA is anticipated to reach AUD 63-70 million. The guidance includes Firma acquisition and excludes the acquisition of Paytron.

The company is committed to growing its target geographies and segments, investing in its single international platform, undertaking accretive M&A opportunities and broadening its B2B value proposition.

Share performance of OFX

OFX shares closed 1.78% higher at AUD 1.43 apiece on 18 December 2023. Including this, the share price has dropped by nearly 40% in a year and by 25.13% in the last six months.

The 52-week high of OFX is AUD 2.46, recorded on 12 January 2023, and the 52-week low is AUD 1.33, recorded on 14 November 2023.

 

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 18 December 2023. The reference data in this report has been partly sourced from REFINITIV.