MoneyMe (ASX:MME) share price edges higher on positive trading update

The MoneyMe Ltd (ASX: MME) share price is edging higher in morning trade following a trading update for Q3 FY21. Here's the key highlights.

| More on:
A man climbing stairs that go up and down in a chart style, indicating a moving share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Moneyme Ltd (ASX: MME) share price is edging higher in mid-morning trade following a trading update for Q3 FY21.

At the time of writing, the digital credit company's share price is fetching for $1.45, up a marginal 0.3%.

How did MoneyMe perform?

MoneyMe shares are relatively flat despite delivering a robust performance for the quarter.

For the period ending 31 March 2021, MoneyMe reported originations of $108 million, reflecting a 57% increase on Q2 FY21. Over the prior corresponding period (pcp), this metric grew 111% ($51 million in Q3 FY20).

Gross customer receivables also surged to $233 million, a lift of 63% on the prior comparable period. Growth from the company's existing personal loan and freestyle products predominately drove the result.

MoneyMe noted that while the overall consumer credit market remained flat, its 'Generation Now' suite of offers attracted new cliental.

Following on to earnings, the company achieved a record of $15 million in revenue for Q3 FY21. In the prior quarter, revenue stood at $12 million, representing a 25% increase. MoneyMe revealed that it is expecting contracted revenue to come in at $19 million for Q4 FY21.

The average customer receivables term also jumped to 35 months, up from 32 months in the last quarter.

Funding costs reduced to 6% as compared to 9% in the first-half of FY21. The group noted the improvement came leveraging its bank warehouse facility. Furthermore, core operating cost margins pleasingly declined to 9% in Q3, down from 12% realised in H1 FY21.

Lastly, MoneyMe reaffirmed the quality of its credit book, attaining an average Equifax score to 644. This metric represents a credit scoring model, with any number between 580 to 669 considered as fair.

What did management say?

MoneyMe managing director and CEO, Clayton Howes hailed the strong result, saying:

We are incredibly pleased to report the growth and momentum the business is achieving, with increasing revenues and another set of records in originations and customer receivables.

Our business is accelerating with the credit quality of our customers increasing and it is fantastic to see the strong take-up of our recently launched products by our customers and merchants.

MoneyMe share price review

The MoneyMe share price has gained over 60% in the past 12 months, but is unchanged from year-to-date performance. The company's shares have travelled little since September 2020, last reaching a 52-week high of $2.00 the month before.

On valuation grounds, MoneyMe presides a market capitalisation of around $244.3 million, with 171.4 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A young man wearing a backpack in a city street crosses his fingers and hopes for the best.
Dividend Investing

These 2 ASX shares are predicted to pay dividend yields higher than 8%!

Here are two stocks paying excellent cash flow.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Growth Shares

How I'd use ASX growth shares to turn $1,000 into $10,000

Choosing the right growth shares can add plenty of bang to your buck.

Read more »

A couple sitting in their living room and checking their finances.
ETFs

The pros and cons of buying the BetaShares Australia 200 ETF (A200)

These are what I consider to be the main positives and negatives of the cheapest ASX share ETF in Australia.

Read more »

Smiling man working on his laptop.
Share Market News

5 things to watch on the ASX 200 on Monday

A better session is expected for Aussie investors today.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A man stands at the bottom of a spiral staircase looking up.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX utilities shares led the 11 market sectors for a third consecutive week.

Read more »

Two people comparing and analysing material.
Opinions

Should you buy Metcash or Wesfarmers stock now?

I like the impressive hardware divisions of both of these businesses.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

These ASX 200 shares could rise 20% to 50%

Big returns could be on the cards for owners of these shares according to analysts.

Read more »