The WISR Ltd (ASX: WZR) share price is up nearly 3% following release of the company's first half FY21 results today and is currently trading at 19 cents. The Wisr share price has fallen roughly 30% over the previous 12-month period.
Wisr is a consumer lending and fintech company. In today's results presentation, the company reiterated its aim to 'aggressively capture market share' in the consumer lending market. Wisr intends to 'reinvent' consumer lending by offering what it labels as fairer rates, a better loan experience, and financial literacy education.
Here are some highlights from Wisr's first half FY21 update.
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Wisr's first half highlights
The company reported first half FY21 revenue of $10 million. This is a 354% increase compared to Wisr's first half FY20 revenue of $2.2 million.
Overall cash earnings before interest, tax, depreciation and amortisation (EBITDA) for the period was $6.5 million. This was a 6% improvement compared to $6.9 million EBITDA reported for the prior corresponding period.
Operating expenses (Opex) increased by 59% during the first half of FY21. The company advised that this is in line with its management plan. Wisr pointed to the 59% Opex increase in relation to its 354% revenue increase, stating the two compare 'very favourably' and are in line with business deliverables.
Wisr reports that it currently has over $390.5 million in loans written to date. The company's loan originations rose 166% when comparing this half to the prior corresponding period. Loan originations for the period came in at $145.7 million.
Wisr CEO commentary
Commenting on the first half achievements, Wisr CEO Mr. Anthony Nantes said:
We have seen a substantial step-change in operating capability in the last six months. Our H1FY21 results delivered a significant 354% uplift in revenue while reducing overall Cash EBTDA loss by 6%, compared to this same period last financial year.
Investments in talent and technology, planned at the time of our January 2020 capital raise but deferred in response to COVID-19, have now been made. This means that increases in operating cost base will be more incremental in the medium term, resulting in significant operating leverage as revenue continues to grow strongly in-line with the growth of our loan book.
