Result of the week: Afterpay

Dean Fergie

Cyan Investment Management

Afterpay (AFY.ASX), a provider of interest-free payment solutions for retail customers, has consistently beaten market expectations since listing in April 2016. That trend has continued this week with its 1H17 result producing some truly astonishing trading metrics: underlying sales of $145m (+370%); revenue of $6m (+417%) and an inaugural operating EBITDA profit of $0.6m.

 

Notably this powerful momentum appears to be continuing with current merchants using Afterpay (including major brands such as Country Road, Cotton On, Rebel and Witchery) presently numbering 2,600, up substantially from 2,044 at the end of CY16

 

To date AFY’s payment platform has primarily been rolled out to online stores, however a significant uplift is expected as the platform moves in-store, effectively replacing the old lay-by system.

 

AFY recently partnered with EFTPOS provider Tyro to offer Afterpay throughout Tyro’s base of 17,000 merchants. We expect this will be a further step-change for AFY’s already high-growth payments platform.

 


1 topic

Dean Fergie
Director & Portfolio Manager
Cyan Investment Management

Dean has over 25 years experience in the funds management industry covering all major asset classes. He holds as Master of Applied Finance and is a Graduate of the Australian Institute of Company Directors.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment