OFX post 2 percent revenue rise after rocky 2016
(22 May 2017 – Australia) Foreign exchange payment service provider, OFX reported a two percent rise in revenue to A$115.23 million for the year to March 2017.
However, the firm’s net profit fell 10 percent, to A$19.6 million over the same period. jumped after the foreign exchange payments service posted its full year results hitting guidance.
Early this year, the company tempered expectations, saying that the fallout associated from Brexit would reduce fee and commission income for 2017 by will be A$3 million.
OFX reported fee and trading income of A$114.1 million, up 2.5 percent on last year, with 13.6 percent growth in North America.
Skander Malcolm, who took over as CEO from new CEO who replaced Richard Kimber in February, says the fundamentals of the business are strong, with overall transaction numbers and with an active client.
According to East & Partners’ Australian Business FX markets report, the firm has lost a massive 30 percent relative Spot FX market share across all business segments in its home market between 2014 and 2017. Its non-bank competitor, and market share leader Western Union continues to dominate, driven by its performance among Micro businesses and SMEs.
The report has also found that Australia’s largest lender to small businesses, National Australia Bank, struggles to capitalise on their transaction banking relationships, in winning those firms’ foreign exchange business.