OFX Group (ASX:OFX)global provider of foreign exchange and payment services, has released its results for the six months ended September 30, 2024, showing mixed performance in challenging economic conditions. The Group reported commission and trading revenue of $114.5 million, almost unchanged from the previous year, while net operating income fell 3.5% to $111.2 million. Underlying EBITDA fell 8.8% to $29 million, due to subdued transaction volumes, particularly in the UK and Canadian markets.
Business growth was robust in regions such as the United States (+24.8%) and Europe (+77.6%), offsetting declines seen in Canada and the United Kingdom.
CEO Skander Malcolm highlighted the economic impact on customer behavior, saying: “The first half was impacted by challenging macroeconomic conditions as changes in the interest rate cycle occurred later than we expected.” He expressed optimism about OFX’s potential as markets stabilize and highlighted the successful launch of the New Client Platform in Australia, which increased revenue from new enterprise clients by 26.6%.
Earnings per share (EPS) for the period were 6.49 cents, down slightly from 6.73 cents in the prior corresponding period.
OFX maintained strong cost management, reducing operating expenses by 1.4%, and continued its share buyback program, acquiring 1.6 million shares for $3.3 million. The Group expects a stronger second half, supported by favorable market conditions and the planned expansion of its platform for new customers in Canada and the United Kingdom.
Shares are trading 9.42% lower at $1.33.