OzForex shares crunched as profits fall

Photo: Odd Andersen / AFP/ Getty Images.

Profits at OFX, formerly called OzForex, have slipped as the foreign exchange provider takes a hit from Brexit and invests in technology.

Net profit was down was down 14% to $9.66 million for the six months to September. Revenue was just 1% higher at $58.63 million.

A short time ago, OFX shares were down 15% to $1.365.

CEO Richard Kimber says the company has seen a return to modest revenue growth despite unfavourable market conditions post Brexit. Transaction volumes have increased from both existing and new clients.

“As part of our three year accelerate strategy the first half saw a step change in investment in our proprietary technology platform, key personnel hires, and in our rebranding and marketing program,” he says.

“While along with a stronger AUD and lower value GBP transaction flows this investment has resulted in reduced earnings, it provides a strong platform for growth and will accelerate margin growth as we scale the business.”

He says the growth opportunity for OFX is substantial.

“With our proprietary platform and extensive banking network we are one of the most compelling alternate foreign exchange providers to the banks globally, and continue to attract and disrupt both their personal and corporate customers,” he says.

“Our rebranding and marketing strategy in ANZ is targeting a much larger cohort of customers, and while still at an early stage, is starting to see positive results.”

The company declared a fully franked interim dividend of 2.80 cents a share.

Here’s how revenue took a hit from the UK voting to leave the European Union:

Source: OFX

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