OFX Group announces 1H25 trading performance

OFX Group (ASX: OFX) has released an update on its first half fiscal year 2025 trading performance. The company anticipates a Net Operating Income of approximately $111 million and an underlying EBITDA of around $29 million for the six months ending 30 September 2024. These figures are lower than expected due to economic shifts affecting currency trading patterns and corporate confidence.

OFX Group's strategic focus and outlook

OFX Group expects positive Net Operating Income growth in the second half of FY25 compared to both the previous corresponding period and 1H25. The company aims for a long-term NOI annual growth rate of 15%+ and an underlying EBITDA margin of approximately 30%. Challenges include subdued consumer confidence and low volatility affecting transaction volumes. The company continues to focus on B2B growth and managing operating expenses. The New Client Platform, launched in Australia, shows promise with a 38% increase in new corporate client revenue. OFX plans further updates on its medium-term outlook in May 2025.

Executive commentary on OFX's trading update

The expected NOI for 1H25 is approximately $111 million, and underlying EBITDA is around $29 million. These outcomes are below expectations due to slower-than-anticipated economic improvements and currency trading patterns affected by a strong USD. Corporate Average Transaction Values (ATVs) in the UK and Canada saw declines, negatively impacting revenue. However, Australia and the US experienced double-digit growth in corporate revenue.