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Highlights

  • OFX is an international payment services provider with a presence in 9 countries
  • The company’s NOI grew by 45.6% in FY23, driven by Firma acquisition, revenue growth in all regions and good margin management
  • Recently, the company has completed Paytron’s acquisition and expects the transaction to assist in B2B client expansion

Established in 1998, OFX Group Limited (ASX: OFX) is a Sydney-based company that offers international payment services to customers and business clients across 9 countries. The company complements its global digital platform with 24/7 client support.

For the financial year2023 (FY23), the company reported a 45.6% rise in NOI (Net Operating Income) over the previous corresponding period (pcp), 40.3% growth in underlying EBITDA and 25.6% growth in statutory net profit after tax. The results were underpinned by the acquisition of Firma, revenue growth across all regions and good margin management, the company said the integration of Firma exceeded the company’s expectations as it delivered more than 30% EPS (Earnings Per Share) accretion in year one.

Here’s the historical financial trend of OFX.

Recent business update

In a company update dated 3 July 2023, the company announced the completion of Paytron Holdings Pty Ltd.’s acquisition. This transaction is expected to generate revenue beyond spot FX. Also, the acquisition is expected to aid OFX’s strategy to expand its B2B client’s services.

In another filing, the company shared that its annual general meeting is due to be held on 3 August 2023.

Outlook

OFX aims to become a leading cross-border payments specialist. In FY24, the company expects to deliver NOI of AUD 225 million to AUD 243 million (excluding Paytron contribution). The expected range of underlying EBITDA is AUD 63 million to AUD 74 million. The results will be driven by focusing on the expansion of target segments and geographies, creating synergies from the Firma acquisition and enhancing customer value via investing in its global digital platform.

OFX Share performance

Shares of OFX closed at flat AUD 2.100 per share on 24 July 2023. In the past three months, the share price has zoomed up by 40.93% and in one month, it has surged by 11.11%. However, in one year, the stock registered a fall of 16.66%.

The 52-week high of OFX is AUD 2.910, recorded on 8 November 2022, and the 52-week low is AUD 1.375, recorded on 20 April 2023. The current stock price is 52.73% higher than the 52-week low and 27.84% lower than the 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, and currency, is 24 July 2023. The reference data in this report has been partly sourced from REFINITIV.