OFX Group (ASX:OFX) released an update on its first half of FY25 trading performance, anticipating a net operating income of approximately $111 million and an underlying EBITDA of roughly $29 million for the six months ended Sept. 30.
The outcomes fall below OFX's initial projections due to unexpected shifts in the interest rate cycle and the strong USD impacting key currency corridors.
Trading activities in the initial months of the first half met expectations, but the latter part experienced slower corporate confidence recovery, notably affecting fee and trading income.
Specific geographic areas, such as the UK and Canada, saw declines in corporate average transaction values, down 21.8% and 7.1% respectively from the prior corresponding period.
In contrast, Australia and the US witnessed double-digit growth in corporate revenue.
A positive aspect in this period was the performance of new corporate clients, with corporate revenue from foreign exchange-only activities growing by 11% compared to the previous corresponding period.
In Australia, where the new client platform was introduced in June, FX-only new revenue rose by 25%, increasing to 38% when including non-FX activities.
"While OFX's core resources are focused on B2B growth, Consumer confidence in most geographies remained subdued," explained Skander Malcolm, CEO of OFX Group.
Looking forward, OFX projects positive NOI growth in the second half of FY25 compared to the previous corresponding period and H1 FY25.
However, the overall growth for FY25 is anticipated to be lower than the 10% initially indicated.
The company remains committed to achieving a long-term NOI annual growth of 15% or more and an underlying EBITDA margin of approximately 30%.
At the time of reporting, OFX Group's share price was $1.55.