Novatti Group's quarterly financial achievements

Novatti Group (ASX:NOV), a prominent fintech company specializing in payment solutions, has reported its quarterly activities for the period ending September 2024. The company demonstrated a robust financial performance with a 13% increase in revenue to $12.9 million and an 11% reduction in expenses to $5.5 million. These results are part of its ongoing turnaround strategy aimed at achieving positive cash flow.

Novatti Group's strategic outlook and financial strategy

Novatti Group has reported significant advancements in its financial performance for the quarter ending September 2024. With a 13% increase in revenue and an 11% decrease in expenses, the company is effectively implementing its turnaround strategy towards positive cash flow. Key initiatives include additional cost reductions of $2.8 million annually, a focus on core business growth, particularly in Payments AU/NZ, and a capital raising initiative securing at least $7 million. Novatti aims for positive operating cash flow by January 2025 and expects further growth in its Payments business, targeting a gross margin increase to over 70% by FY27. The company is also embarking on a brand refresh and has expanded its ChinaPayments product into New Zealand. A capital raising of up to $9.4 million has been initiated to support growth, backed by major shareholders. Novatti remains committed to optimizing business units and maintaining transparency through regular updates.

Executive insights on Novatti's quarterly results

The sale of Novatti's interest in the International Bank of Australia (IBoA) for $2.87 million contributed to improved financial stability, saving approximately $0.8 million in future quarterly cash consumption.