OzForex profits slip 10% but revenue grows by double digits

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OzForex full year profit fell 10% to $21.81 million as the international payments service provider strengthens its management team and builds an enhanced mobile digital presence.

CEO Richard Kimber says the result builds on growth plans with net operating income exceeding $100 million for the first time.

Revenue for the 12 months to March was up 16% to $112.9 million, with half that generated outside Australia. The number of active clients grew 6% to 150,900 with the number of transactions up 12% to 784,200.

But expenses also grew, by 22% to $67.8 million.

EBTDA (earnings before tax, depreciation and amortisation) was up 5% to $36.1 million, right in the middle of its full year guidance of between $35 million and $37 million.

The company is still aiming for $200 million revenue by the 2019 financial year.

OzForex in February pulled out of takeover talks with global giant Western Union at around $3.50 a share. The shares last traded at $2.28.

The Australian company has transferred more than $100 billion in payments — $20 billion of that in 2016 — since it began in 2003.

Richard Kimber. Supplied.

“The group has embarked on a series of initiatives that will see us accelerate growth over the medium term,” says Kimber.

“Changing to a single brand (OFX) across the global operations is a significant transition and is progressing extremely well. This change will yield both strategic and marketing efficiencies, allowing the Group to build on its global digital platform.”

“We have already seen a strong recovery in branded search and web traffic to ofx.com. Our ads have already had more than 3 million views in the first two weeks on YouTube.”

The company has also appointed a new chief marketing officer, chief operating officer, chief technology officer and a head of people and culture.

The launch of the new mobile responsive website has seen strong growth and there have been more than 55,000 downloads of its app since July last year.

“We are delivering our technology in an increasingly agile manner, and have added some key talent to our software teams,” he says.

“This has been a transitional year, with several new executives joining the business and a full review of the growth opportunities undertaken.”

A fully franked dividend of 3.1 cents a share, or about 70% of net profit for the year, was declared.

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