Afterpay Touch Group Ltd (ASX: APT) reported its result for the six months to 31 December 2017 earlier today.
Afterpay is the buy now, pay later provider that is rapidly expanding in the retail industry.
This is the first report for the combined entity, any comparisons will be the underlying Afterpay business this year compared to last year:
- Total revenue of $49.9 million
- Afterpay revenue was up by 518% to $37.1 million
- Earnings before interest, tax, depreciation and amortisation (EBITDA) excluding significant items of $12.1 million
- EBITDA after significant items of $5.5 million
- Profit before tax of $0.7 million
- Loss after tax of $0.7 million
The company said in the past six months Afterpay purchasing customers have grown by 85% to over 1.5 million and it has linked up with more than 12,000 'retail partners' and have sold over $900 million of goods and services, an increase of 120% over the last six month period.
Afterpay said that it now represents over 25% of all Australian domestic apparel online sales and over 8% of all online physical retail sales.
The company boasts of having customer loyalty with returning customers who, on average, have placed eight Afterpay orders over the past twelve months. Nearly 90% of underlying sales in the last quarter came from customers have previously used Afterpay.
The company said that new and integrating online retailers include Fantastic Furniture, Pet Stock, Spotlight, Anaconda, Greencross Limited's (ASX: GXL) Petbarn and Baby Bunting Group Ltd (ASX: BBN).
The company said that the US represents a significant opportunity to expand Afterpay's retail connections.
Foolish takeaway
This was another blockbuster report from Afterpay and it is clearly resonating with customers and retailers alike.
Questions remain about the quality of Afterpay's ever-growing 'loan book', but it is growing at such a fast pace it may not matter to investors.
