The Group released a business update for the three-month period ended 30 June 2018 (Q4 FY18) and the financial year ended 30 June 2018 (FY18). The Group reported an increase of 171 per cent over Q4FY17 in Q4 FY18 underlying sales that amounted to approximately $736m and over $2.18bn of total underlying sales were processed through the Afterpay (ASX:APT) platform in FY18 (289% increase over FY17). This growth was driven by a combination of new customers (growing at an average of over 3,600 per calendar day in Q4 FY18), repeat customer activity, new retailers (consistently onboarding between 600 and 1,000 new businesses per month), increasing share of retailer check-out and adoption of Afterpay’s in-store proposition by existing multi-channel retail partners.
The Company expects that FY18 Group Revenue and Other Income will be around $142m, FY18 Group EBITDA will between $33m to $34m and FY18 Group EBTDA is expected to be in the range of $27m to $28m (subject to audit). It was worth noting that gross losses and net transaction losses trended down in Q4 FY18 and improved over H2 FY18, despite an increase in underlying sales performance and merchant diversification in the same period. New retailers and service providers continue to sign-up to Afterpay in Australia including BOOHOO, BING LEE, MITRE 10 and DIESEL in categories such as health, beauty and entertainment with a strong future pipeline.
The Company will release its audited financial results and annual report on 23 August 2018 and from FY19 the Group will report results on a half-yearly basis and will no longer release quarterly business updates. The Company continues to progress expansion opportunities for Australian and New Zealand based retailers that are present in the U.S. market.
Recently, U.S. Afterpay business employed a 25% late fee cap since inception and will implement further fraud prevention enhancements as further transactional data and experience are obtained. It was seen that Afterpay processes more than 10% of all physical online retail in Australia and over 10% of the purchasing Australian population has transacted with Afterpay since inception. The stock price climbed up by 23.26 per cent and traded at $13.46 as on 19 July 2018; 03:50 pm AEST.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.