OFX Q3 Revenue Rebounds with Increasing Corporate Client DemandJanuary 28, 2021
Sydney-based OFX Group Limited (ASX: OFX) has published its financial results for the third quarter of the financial year 2021, from October until December, showing a healthy boost in all income streams.
The income generated from fees and trading activities came in at AUD 36.5 million for the quarter, 10.2 percent higher than the previous quarter and 8.2 percent from the corresponding quarter a year ago.
Additionally, the overall net operating income witnessed a year-on-year jump of 4.2 percent, reaching AUD 32.3 million. The Aussie company cited strong transactional growth behind the strengthening of its quarterly performance. Indeed, the transactions on the platform surged by 27.6 percent last quarter, compared to the year before.
Corporate Clients Are Lucrative
OFX is now primarily focusing on acquiring higher-value clients, mostly corporates. It is already succeeding with this strategy as corporate new dealings went up by 12 percent year-on-year and an 8 percent revenue jump from this segment. The revenue generated from the clients in North America, Australia and New Zealand also went up by 32 percent.
“In what has been one of the most uncertain periods for economies worldwide, the growth in revenue is testament to the high degree of client support,” OFX Chief Executive, Skander Malcolm, said. “The recovery in consumer client activity and further growth in corporate revenue gives us a great deal of confidence in the strength of the business for the remainder of the year and beyond.”
The company is now expecting an excellent last quarter of the ongoing financial year. However, it is not expecting the FY21 Q4 numbers to exceed the last quarter of FY20 when the market volatility triggered a massive surge in trading.
“4Q20 NOI was up 16.3% on 4Q19. Cost management is in line with expectations and the business continues to generate strong cash flows,” Malcolm added.
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