Image source: Pixabay

Highlights

  • In the first quarter of FY24, the company recorded 25.5% YoY increase in net operating income and a 16.9% YoY jump in B2B revenue
  • In full year 2024, the company expects to achieve net operating income of AUD 225-243 million
  • Active client’s retention and growth is the company’s future focus

OFX Group Limited (ASX: OFX) is an ASX-listed firm which provides international money services. It has presence in nine countries. The company offers money transfer and foreign exchange services across over 50 countries to enterprise, consumer and corporate clients. Established in 1998, OFX’s present market capitalization is AUD 385.36 million.

In the financial year 2023 (FY23), the company delivered record performance as the underlying EBITDA increased by 40.3% YoY to AUD 62.4 million, net operating income surged by 45.6% YoY to AUD 214.1 million and turnover jumped 17.9% YoY to AUD 39.1 billion.

The yearly performance was backed by revenue growth across regions, margin management and acquisition of Firma.

The company had a positive start to FY24 as net operating income surged by 25.5% YoY and 12.6% QoQ in the first quarter of FY24. Moreover, the period saw 16.9% YoY increase in B2B revenue.

Here’s the historical financial trend of OFX.

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. Selector Funds Management Limited and Australian Ethical Investment Ltd. Have the maximum stake in the firm with a shareholding of ~11.36% and ~7.83%, respectively.

Recent business update

Through an ASX filing dated 27 October 2023, OFX informed that Renaissance Smaller Companies Pty Ltd has become a substantial holder in the firm with a voting right of 5% on 24 October 2023.

Outlook

In FY24, the company expects to register net operating income of AUD 225-243million and core underlying EBITDA of AUD 63-74 million.

The company informed that it is focused on undertaking value-accretive M&A, capital management, generating value from B2B clients beyond spot FX, increasing transaction per active clients at a less marginal cost, growing active client base and increase retention rate of active clients.

The segments which are on the company’s target include high-value, corporate, enterprise and online seller consumers.

Share performance of OFX

OFX shares closed 1.29% down at AUD 1.530 apiece on 13 November 2023. With this, OFX’s share price has recorded a fall of 43.12% in the past 12 months and a fall of 21.53% in the past nine months.

The 52-week high of OFX is AUD 2.91 apiece, recorded on 8 November 2022, while the 52-week low is AUD 1.375 apiece, recorded on 20 April 2023.

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 13 November 2023. The reference data in this report has been partly sourced from REFINITIV.