OFX marks rise in revenues in H2 FY19 despite challenging market conditions

Maria Nikolova

The company registered corporate revenue growth of more than 10% across all markets in the second half of FY19 to date.

Provider of online payment services OFX Group Ltd (ASX:OFX) has earlier today posted a brief trading update for the second half of FY19 to date. 

The company reported corporate revenue growth of more than 10% across all markets, as well as US revenue growth of more than 20%. In addition, OFX said net operating income (NOI) margins were stable, excluding International Payment Solutions (IPS).

The company is targeting annual positive operating leverage on an EBITDA basis and expects to deliver FY19 EBITDA, excluding one-off corporate action costs, of between $30.9 million and $32 million.

Skander Malcolm, CEO of OFX, said:

“Market conditions have been challenging relative to the prior year, given lower levels of currency volatility and softer global spot transaction volumes. While active clients have not grown as much as anticipated, we saw growth in February. What is pleasing is that we have outperformed the market in many respects, with corporate revenue up more than 10% across our markets and US revenue growth of more than 20%. In line with our commitments we have maintained steady NOI margins and are targeting positive operating leverage for the full year. We expect EBITDA for the full year to be between $30.9m and $32.0m.”

In December 2018, OFX said it would incur non-recurring operating expenses related to disclosed discussions with Currencies Direct. These non-recurring operating expenses are expected to be approximately $4 million.

Back then, OFX reconfirmed its commitment to deliver annual positive operating leverage on an EBITDA basis, excluding these non-recurring operating expenses related to corporate actions.

In an announcement filed with the ASX on November 13, 2018, OFX Group noted media speculation and commented that it continually reviews potential opportunities and holds discussions with various parties, including Currencies Direct. OFX also stressed that it is in compliance with its continuous disclosure obligations and will keep the market informed in accordance with those obligations. A week later, OFX said that discussions with Currencies Direct were no longer continuing.

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