Risultati aziendali durante il Covid-19: diminuzione dei consumi, aumento del business-to-business
OFX reports revenue drop, shifts focus to B2B sector
In a recent financial update, foreign exchange company OFX reported a 5.6% drop in revenue for the first half of the 2020/2021 financial year. The decline, largely attributed to the unstable economic environment caused by the Covid-19 crisis, was particularly noticeable in the private client business segment, especially from April to June.
Despite the revenue drop, OFX has announced its intentions to focus on Business-to-Business (B2B) as its growth engine, particularly in the US and Europe. The company operates in a variety of sectors, including private client and B2B offerings, with B2B offerings encompassing corporate, online sellers, and enterprise segments.
The average transaction value declined 12% year-on-year due to the Covid-19 crisis, with a notable decrease in Q2. However, the online sellers' revenue rose 16% and the segment was up 52% excluding Asia. Moreover, corporate revenue from new clients was up 33% year-on-year.
Trading in the Corporate segment shifted towards offshore share purchases and disposals, which have a lower transaction value. This shift, coupled with the decline in the average transaction value, contributed to the overall revenue drop.
In a positive development, the private client business segment has started to recover. The decline in EBITDA for OFX was 34.5% during the same period, but the company's performance across all segments provides useful benchmarks for the industry.
OFX will not chase digital bank partnerships but will focus on deals like the WiseTech partnership instead. This strategic decision aligns with Moneycorp's focus on B2B as its growth engine. The Enterprise segment had a second big win of the year with its WiseTech partnership, and OFX expects to generate AUS$5m of annual revenue by 2024 from this partnership.
Revenue in Asia declined 30%, while Europe saw an 8% decline and North America showed 14.5% growth in Q3. This geographical distribution of revenue suggests a potential for growth in North America and a need for recovery in Asia and Europe.
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Despite the challenges, OFX has performed better than many of its peers, especially in the B2B space. The company's strategic focus on B2B, particularly in the US and Europe, could position it for strong growth in the coming years.
