Overview of Butn's 1H24 performance

Butn Limited (ASX: $BTN) has reported a record performance for the six months ended 31 December 2023 (1H24). The company achieved record originations and revenue, platform growth, and positive EBITDA, with 1H24 revenue reaching $6.8 million, up 24% from the previous corresponding period (pcp). Co-founder and Co-CEO, Rael Ross, highlighted the sustained momentum and origination growth in the business, emphasizing the improved positive EBITDA result and the continued growth in the platform business.

Executive commentary on 1H24 performance

We have demonstrated growth in 1H24, delivering record originations and revenue at an improved revenue margin. Our platform distribution channel continues to develop, with a third consecutive record of quarterly originations and revenue in Q2FY24. The increased revenue has led to an improved positive EBITDA result in 1H24, up more than double on the pcp, benefitting from the strategic operating leverage in the business model. Looking forward, due to business seasonality post-Christmas and January holidays, the third quarter is typically our most modest of the financial year, yet January 2024 saw an improvement on a pcp basis with continued growth, particularly in our platform business.

Summary of Butn's 1H24 results and outlook

Butn Limited (ASX: $BTN) has reported a strong 1H24 performance, achieving record originations, revenue, platform growth, and positive EBITDA. The company's strategic operating leverage and sustained momentum in origination growth have contributed to an improved financial position, with bad debts written off for 1H24 under 0.1% of total originations. The platform distribution channel, including the strategic MYOB partnership, has delivered record originations and revenue, demonstrating the company's commitment to innovation and growth. With receivables increasing to $84.5 million and successful debt raise in October 2023, Butn is well-positioned to support future receivable book growth. The company's outlook remains positive, with continued growth anticipated, particularly in the platform business, despite the typical modesty of the third quarter in the financial year.