Block share price in the red as Afterpay loss balloons 336%

Block has released the half-year results for the company it acquired earlier this year.

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Key points

  • Block reported Afterpay's financial results 
  • Afterpay's net loss after tax skyrocketed but its total income exploded nearly 55%
  • The Block share price is falling slightly today 

The Block Inc (ASX: SQ2) share price is edging lower today amid the company releasing half-year results for Afterpay.

The company’s shares are currently swapping hands at $164.11, a 0.22% fall.

Let’s take a look at what Block reported today.

How did Afterpay fare?

Block reported the financial results of Afterpay for the six months ended 31 December 2021.

Highlights included:

  • Net loss after tax of $345.5 million, up 336% from the $79.2 loss in the prior corresponding period (PCP)
  • Total comprehensive loss, net of tax, of $298.99 million, up 133% on PCP
  • Operating loss of $263.7 million, up 287% on PCP
  • Total income of $644.9 million

Afterpay loss skyrockets

The Afterpay net loss after tax surged 336% on the PCP, in which the company reported a $79.2 million loss.

Underpinning this loss was a massive surge in operating expenses. Employment expenses surged 79% to nearly $112 million. Marketing expenses also skyrocketed nearly 99% to 137.6 million.

Other operating expenses soared nearly 287% from $63 to $212.3 million.

On a positive note, total income exploded nearly 55% from $417.2 in the PCP.

Block announced it would acquire Afterpay in August 2021 and listed on the ASX as Block on 1 February 2022. Block issued 113,387,895 shares of Block valued at $19.6 billion. Afterpay is no longer listed on the ASX.

The company also trades on the New York Stock Exchange (NYSE: SQ). Block shares dropped 0.11% in the United States overnight. In after-hours trade, the company’s shares fell 0.39%.

Block share price snapshot

The Block share price is falling 7% year to date, while it has surged 12% in the last month.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 0.01% this year to date.

Block has a market capitalisation of about $7.4 billion based on its current share price

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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