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.