Here’s why the OFX (ASX:OFX) share price is breaking the ASX slump today

The OFX Group Ltd (ASX: OFX) share price is tiptoeing higher following the release of its third-quarter trading update for FY21.
The post Here’s why the OFX (ASX:OFX) share price is breaking the ASX slump today appeared first on The Motley Fool Australia. –

The OFX Group Ltd (ASX: OFX) share price is tiptoeing higher today following the release of its third-quarter trading update.

At the time of writing, the OFX share price is defying the weakening ASX market, reaching $1.20.

Q3 FY21 performance review

The OFX share price is moving in positive territory after investors digest the company’s latest results.

For the period ending December 31, the foreign exchange and money transfer company delivered fee and trading income (revenue) of $36.5 million. This represented a 10.2% increase compared to the last quarter and an 8.2% lift over the prior corresponding period (pcp).

Underpinning the result, corporate segment and online sellers saw growth of 17.9% and 9.9% over the pcp, respectively. This was despite consumer revenue, due to COVID-19 challenges, falling 3.6% from this time last year.

Overall, net operating income (NOI) for the business elevated to $32.3 million, up 4.2% over the comparable period. The sound performance was attributed to strong transaction volumes and higher Corporate Average Transaction Values (ATV). The company noted that the astronomical growth recorded in these segments may result in a lower NOI margin for FY21.

Transactions surged to 361,800, representing a 27.6% jump over Q3 FY20. OFX revealed that its higher-value clients traded more frequently with greater ATV’s. At a group level, ATV stood at $19,800 which is a 12.7% drop from the pcp, but an improvement on the prior quarter.

What did the CEO say?

OFX’s CEO, Mr. Skander Malcolm, reinforced the company’s achievement, saying:

In what has been one of the most uncertain periods for economies worldwide, the growth in revenue is testament to the high degree of client support. The recovery in Consumer client activity and further growth in Corporate revenue, gives us a great deal of confidence in the strength of the business for the remainder of the year and beyond.

Our growth investments also continue to deliver a more valuable business, with excellent new client activity in Corporate that will underpin future recurring revenue, a stronger and more global Online Sellers segment, and a growing Enterprise segment with a healthy pipeline.

OFX share price summary

The OFX share price has fallen more than 14% when looking at its 12-month chart. A steep drop in March due to COVID-19 brought the company’s shares to an all-time low of 90.5 cents. However, a quick rebound occurred, elevating its shares to near its 52-week highs of $1.54 achieved last January.

Nonetheless, the OFX share price has treaded lower more recently, stabilising around the $1.20 mark.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the OFX (ASX:OFX) share price is breaking the ASX slump today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!