OFX Group revenue drops 15.5% to $92.2M
By Liezl GambeKey points
- OFX Group reported a 15.5% drop in first-half revenue to $92.2 million amid ongoing takeover talks with Equals.
- Net operating income fell 15% to $89.2 million, but client interest income rose 49.4% to $5.6 million.
- The company initiated a cost-reduction program late in the period to target profitable trading in the second half.
International money services provider OFX Group (ASX:OFX) posted a 15.5% decrease in revenue to $92.2 million for the six months ended Sept. 30.
The group stated that cost-of-living pressures and elevated interest rates dampened business confidence compared to the previous corresponding period.
Skander Malcolm, CEO and Managing Director of OFX, said, "We have largely completed our strategic transformation, with our acquisitions fully integrated, our NCP built and now live in every major market, a new go-to-market strategy in place, and our team retrained to support our broader and more attractive value proposition."
Corporate segment revenue fell 15.8% to $55 million on reduced transaction sizes, while non-foreign exchange revenue rose 185.8% to $1.8 million.
The company stated that its corporate cost-cutting program and sequential revenue growth are expected to support profitable trading in the second half.
Following the announcement, the OFX Group share price was unchanged at $0.45.
Management confirmed that corporate discussions with the potential acquirer, Equals, continue on a non-exclusive basis with no certainty of a finalized deal.
The business completed client migrations to its new platform across all major markets to expand multi-product corporate adoption.
