OFX Group (ASX:OFX), a global foreign exchange and payment services provider, has released its results for the half-year ending 30 September 2024, showing mixed performance amid challenging economic conditions. The Group reported fee and trading income of $114.5m, nearly flat compared to the previous year, while net operating income declined 3.5% to $111.2m. Underlying EBITDA dropped 8.8% to $29m, attributed to subdued transaction volumes, particularly in the UK and Canadian markets.
Corporate growth was robust in regions like the US (up 24.8%) and Europe (up 77.6%), offsetting declines in Canada and the UK.
CEO Skander Malcolm noted the economic impact on client behaviour, stating, “The first half was impacted by tough macroeconomic conditions as shifts in the interest rate cycle happened later than we expected.” He expressed optimism about OFX’s potential as markets stabilise and highlighted the successful launch of the New Client Platform in Australia, which increased revenue from new corporate clients by 26.6%.
Earnings per share (EPS) for the period were 6.49 cents, a slight decrease from 6.73 cents in the previous corresponding period.
OFX maintained strong cost management, reducing operating expenses by 1.4%, and continued its share buy-back program, acquiring 1.6 million shares for $3.3m. The Group expects a stronger second half, bolstered by favourable market conditions and the planned expansion of its New Client Platform into Canada and the UK.
Shares are trading 9.42% lower at $1.33.