wow, 8 years
undone all the good work for the year, from $2.25 to $1.20 on Thursday and a slight recovery to $1.40
1H25 Update
For the six months ended 30 September 2024, OFX expects to deliver NOI of approximately $111m and underlying EBITDA of approximately $29m (subject to auditor review). This outcome is lower than anticipated, and reflects the following factors, which relate to the key assumptions for FY25:
• Trading through the first few months of 1H25 was in line with expectations as the near-term economic environment showed some positive improvements.
• However, later than anticipated shifts in the interest rate cycle, and corresponding range-bound key currency corridors as a result of the strong USD, resulted in a slower rebound in Corporate confidence. This inhibited client trading patterns late in the half, especially in September, resulting in lower than expected Fee and Trading income.
• Unusually, Corporate ATVs in the UK were down 21.8% on the prior corresponding period and Canada were down 7.1% on PCP, which drove lower revenue on PCP. In Australia and the US, Corporate ATVs were mixed, however, higher transaction volumes resulted in double digit growth in Corporate revenue on PCP in each geography.
• Pleasingly, new Corporate clients are performing well, with Corporate new revenue up 11% on PCP from FX only. In Australia, where the New Client Platform (NCP) was launched in June, Corporate FX-only new revenue growth is 25% on PCP, and up 38% including non-FX activity.
• While OFX’s core resources are focused on B2B growth, Consumer confidence in most geographies remained subdued, which, along with historically low levels of volatility, resulted in lower transaction volumes overall but especially in Australia. Excluding Australia, Consumer revenue was flat on PCP but grew 9.2% versus 2H24.