Reporting from Sydney earlier this morning, Australian online foreign exchange and payments company OFX Group [ASX:OFX] released an investor briefing presentation at its headquarters in Sydney.
In the briefing, OFX provided a trading update, and said it expects to deliver net operating income of around $214 million and earnings of around $62 million for the current financial year.
This is in line with the guidance the company provided in November last year.
Despite the expectations, OFX plunged 12% in afternoon trade on Thursday. Shares were sitting at $1.57 each.
In the year, OFX has dropped 36% in share value:
www.TradingView.com
OFX releases trading update for fourth quarter 2023
The foreign exchange and payments company outlined its trading update for the fourth quarter in an investor briefing presentation today.
The company updated investors on its trading operations and strategy and value proposition, with OFX Chair Patricia Cross providing the Board’s perspective of group performance and outlook.
Zooming in on the highlights, OFX said that it expects to deliver net operating income of around $214 million and earnings of around $62 million for the current financial year, which is in line with the guidance it provided back in November last year.
So why were investors voting the OFX share price down today?
OFX flagged continuing economic uncertainty throughout the second half, which has resulted in a softening of demand for its high value consumer segment.
Although OFX did say that in spite of this, its corporate segment continued strong, with clients remaining active and helping to add some resilience to the portfolio.
Yet, this evidently was not enough to quell its spooked investors.
The group reported NOI (net operating income) is anticipated to reach growth of 39% on the prior period, and to go up 3% on the first half of 2023.
NOI margins are also anticipated to go up 11 basis points.
According to OFX intangible investments are expected to reach approximately $18 million for FY23, reflecting OFX’s commitment to investing for growth through the cycle.
OFX’s CEO Skander Malcolm said:
‘We are pleased with the outcome for the year given the softening of consumer confidence in the second half. With our pivot to Corporate, our business is now much more resilient and means we are well positioned to generate earnings in difficult conditions, while we continue to invest in creating value for our customers and driving efficiencies.’
Source: OFX
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For Money Morning
