Overview of Prospa's H1 FY24 results

Prospa Group Limited (ASX: $PGL) has announced its half-year results for the period ending 31 December 2023. The company reported total originations of $308.3 million, a 27.4% decrease from the previous corresponding period (pcp) and revenue before transaction costs of $145.4 million, representing a 7.4% increase on pcp. Prospa's statutory profit before tax for the half increased to $9.0 million, compared to a $6.3 million loss in pcp (H1 FY23).

Executive commentary on H1 FY24 results

Prospa's Co-Founder and Chief Executive Officer, Greg Moshal, highlighted the company's continued focus on credit risk management and the acquisition of Zip Business's Australian performing loan book. He emphasized the company's commitment to navigating a challenging economic environment and delivering on its product and technology roadmap. Moshal also expressed satisfaction with reaching $4 billion in lifetime originations and the potential unleashed for small businesses through the acquisition.

Summary of Prospa's H1 FY24 results and outlook

Prospa's H1 FY24 results reflect a deliberate tightening of credit settings, leading to a decrease in total originations and closing gross loans. Despite this, the company achieved a 7.4% increase in revenue before transaction costs and a statutory profit before tax of $9.0 million. Prospa's outlook acknowledges the uncertain economic environment but highlights the reduction in early loss indicators and the encouraging market feedback on its premium customer offering. The company remains committed to supporting its customers, partners, and increasing shareholder value. Additionally, Prospa has entered into a Scheme Implementation Deed with a consortium, subject to approval by Prospa Shareholders, indicating potential developments in the company's ownership structure.