The OFX Group Ltd (ASX: OFX) share price is charging higher on Tuesday, up 8.06% at $2.68. However, in earlier trade, it reached as high as $2.75 — an 11% gain on its previous close.
Investors appear to be rallying behind the company after it announced a record set of results for the 12 months ended 31 March.
In wider market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) is trading less than 1% higher on the day.
OFX share price jumps on record results
Key takeouts from the full-year results include:
- Turnover of $33.2 billion, up 32.7% compared to the prior corresponding period (pcp)
- Transactions up 10.8% to 1.18m million
- Average transaction values (ATVs) up 23.5% to $28,000
- Fee and trading income (revenue) up 17.7% to $158 million
- Net operating income (NOI) up 24.7% to $147 million
- Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 53.1% to $44.5 million
- Statutory net profit after tax (NPAT) up 102.4% to $24.5 million
- Net cash held of $84.2 million and net available cash of $31.6 million
What else happened this year for OFX?
The OFX share price is rising on the back of the record results, with the provider of online international payment services scoring strong revenue growth in all segments.
For instance, NOI came in 25% higher at $147 million on the pcp, underscored by a 53% jump in EBITDA over the same period.
Another positive is that bad debts came down by 94% on the pcp, due to what the company calls “exceptional risk management”.
The results carried down to an NPAT of $24.5 million, itself a more than 102% gain on the pcp, underscored by healthy margins and performance in the corporate segment.
Specifically, corporate segment revenue was up 30% on the pcp and grew 21% half-on-half.
Aside from that, OFX also settled the transaction of Firma, a global foreign exchange services provider. The company says this is set to “significantly bolster revenues in its North America corporate business”.
Speaking on the results driving up the OFX share price, CEO Skander Malcolm said:
I am delighted to report such a strong result, which demonstrates excellent momentum across all of our key operating metrics. In an uncertain environment, I couldn’t be happier with the team and execution against our strategy.
We saw double digit revenue growth in all regions and segments while continuing to invest in our technology, people and risk management capabilities to support future growth.
What’s next for OFX?
For the coming year, that being FY23, OFX says it will prioritise investment into its key strategies, while focusing on expanding its footprint in North America.
“The Group will also continue to generate returns from its ongoing investment in product, risk, payments, and technology while focusing on successfully integrating Firma,” OFX concluded.
OFX share price snapshot
In the past 12 months, the OFX share price has soared by more than 114%. It is up 16% this year to date and 12% over the past week.