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Highlights

  • In FY24, the B2B segment experienced 4.8% YoY revenue growth, driven by 5.2% transaction growth and margin expansion.
  • Fee and trading income rose 2.09% YoY to AUD 229.7 million; net operating income (NOI) increased by 6.26% YoY to AUD 227.5 million.
  • Statutory NPAT dropped 0.4% YoY to AUD 31.3 million due to one-off pre-tax items of AUD 3.4 million.
  • Positive NOI growth is expected in 2HFY25, with an underlying EBITDA margin of 28%, contingent on bad debts.

OFX Group Limited (ASX:OFX) is a Sydney-based cross-border payments company, offering foreign exchange and money transfers services across 50 currencies. The company focuses on corporate, enterprise and consumer clients in nine countries. The B2B segment of OFX is performing well recently, as it observed revenue growth of 4.8% YoY in the financial year 2024 (FY24), underpinned by 5.2% growth in transaction and 3bp margin expansion. Meanwhile, new revenue from corporate clients recorded 26.5% growth and the enterprise segment revenues increased by 32.8%.

During the reported period, fee and trading income increased by 2.09% YoY to AUD 229.70 million and net operating income jumped 6.26% YoY to AUD 227.50 million. However, the period saw 0.4% YoY drop in statutory NPAT to AUD 31.3 million due to pre-tax one-off items of AUD 3.4 million.

The company is committed to expand its support for B2B clients and its product offering beyond foreign exchange.

1HFY25 trading update

During the six months period ended 30 September 2024, the company expects to achieve NOI of around AUD 111 million and underlying EBITDA of nearly AUD 29 million. The results are not in line with the company’s expectation and reflected later-than-expected shifts in the interest rate cycle and corresponding range-bound key currency corridors due to stronger USD.

In 2HFY25, the company anticipates positive NOI growth over the 2HFY24. In FY25, underlying EBITDA margin is projected to reach 28%, depending on the unanticipated bad debts in 2HFY25.

Outlook

In 1QFY25, OFX intends to launch its new integrated corporate platform, following the Paytron acquisition. Initially, corporate clients will be migrated region by region and afterwards other B2B segments will be moved to the platform. This platform will provide invoicing, expense management, accounts payable and corporate card services worldwide, providing new revenue streams beyond the current FX services.

Over the next three years, NOI is expected to grow by at least 10% annually with an underlying EBITDA margin of 28-30%.

Share performance of OFX

OFX shares closed 5% higher at AUD 1.47 apiece on 29 October 2024. In the past one year, OFX’s share price has declined by almost 3.29% and in three months, it has decreased by almost 34.96%.

52-week high of OFX is AUD 2.39, recorded on 14 October 2024, and 52-week low is AUD 1.20, recorded on 17 October 2024.

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 29 October 2024. The reference data in this report has been partly sourced from REFINITIV.