OFX Group Limited (OFX) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you, Zach, and thank you, everyone, for joining the call. And as Zach mentioned, I'm joined by Selina Burr, our CFO, and Matt Gregorowski, who leads our investor relations program at Citadel Magnus. Selina and I will take you through the pages, and then there will be time for Q&A. The presentation will cover four things, the half-year result, what was achieved and what drove it, our financials in more detail, the strategy for the larger OFX, including why and how we'll be more valuable in the future, and our fiscal year 24 outlook. Let's move to slide four in the pack. Our first half of 24 was a good performance, with turnover at $19.2 billion, down 3.5% versus prior year, net operating income, or NOI, at $115.1 million, up 9.4%, and underlying EBITDA at $31.8 million, up 1.6%, including our patron investment. Our fundamentals continue to improve, with recurring revenue up just over 2 percentage points to 84%, and NOI margin, X same currency, up 8 basis points to 70 basis points. We finished the half, 60.8 million in net available cash, a very healthy position. There's no doubt the external environment has been an unusual and challenging one, high interest rates, geopolitical conflict continuing to undermine business confidence. This was especially the case in Canada where our corporate portfolio saw a reduction in ATVs and the penetration of forwards driven by soft corporate confidence. However, we did not see a reduction in client engagement. In fact, we grew transactions and in the early part of the second half, we've seen ATVs in our Canadian corporate segment improve considerably. regional corporate segments performing well. Against this backdrop, it's very reassuring that the resilience and diversity of our business shines through, and to see OFXs globall...