Australian forex broker OzForex (ASX:OFX) reported record-high revenues for the first half of its 2015/16 financial year ending March 31, 2016. The figure stood at $10 billion, up 34 per cent on the year, from $7.5 billion. Net operating profit came in at $53.6 million, up 29 per cent on the year, and underlying earnings before interest, tax, depreciation and amortization (EBITDA) reached $18.1 million, a 14 per cent improvement on an annual basis.
Solid client base, recurring revenues
The brokerage boasted 151,000 clients at the end of the six-month period to September 2015, up 16 per cent year-on-year, and 336,000 transactions, a 17 per cent increase on the first half of 2014/15. Average trading volumes stood at $25,582, up 15 per cent on the year. OzForex said that it enjoyed strong recurring revenues from existing clients as well as new ones, with fee and commissions income at $57.3 million, a 30 per cent improvement on the year.
Double-digit growth across continents
Geographically, the fee and commissions result grew the most in North America, speaking of the successful penetration of the company into this market. The figure was $8.7 million, up 57 per cent on the first half of the previous year. The home business also did well, with income from fees and commissions rising by 29 per cent to $30.5 million. In Europe and the UK, this metric improved by 25 per cent to $11.2 million, and in Asia it came in at $1.1 million, up 35 per cent on the year.
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Strong cash flows
OzForex reported net assets of $51.1 million, equal to the total equity of the company, compared with $47.6 million a year earlier. The brokerage also enjoyed strong cash flow generation, which helped it maintain its dividend policy of distributing 70-80 per cent of its net profits. The first-half dividend was set at $0.036 per share, to be paid during the second quarter of its current financial year.
Looking forward, OxForex said that it will prioritize expanding its presence in its home market and abroad, focusing on enhanced technological capabilities for its customers, leveraging the latest in marketing techniques, and planning to launch its new OFX brand globally by the end of the financial year.
The Australian broker earlier this year appointed a new Chief Executive Officer, in line with its growth strategy.