The OFX Group Ltd (ASX: OFX) share price is tiptoeing higher today following the release of its third-quarter trading update.
At the time of writing, the OFX share price is defying the weakening ASX market, reaching $1.20.
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Q3 FY21 performance review
The OFX share price is moving in positive territory after investors digest the company's latest results.
For the period ending December 31, the foreign exchange and money transfer company delivered fee and trading income (revenue) of $36.5 million. This represented a 10.2% increase compared to the last quarter and an 8.2% lift over the prior corresponding period (pcp).
Underpinning the result, corporate segment and online sellers saw growth of 17.9% and 9.9% over the pcp, respectively. This was despite consumer revenue, due to COVID-19 challenges, falling 3.6% from this time last year.
Overall, net operating income (NOI) for the business elevated to $32.3 million, up 4.2% over the comparable period. The sound performance was attributed to strong transaction volumes and higher Corporate Average Transaction Values (ATV). The company noted that the astronomical growth recorded in these segments may result in a lower NOI margin for FY21.
Transactions surged to 361,800, representing a 27.6% jump over Q3 FY20. OFX revealed that its higher-value clients traded more frequently with greater ATV's. At a group level, ATV stood at $19,800 which is a 12.7% drop from the pcp, but an improvement on the prior quarter.
What did the CEO say?
OFX's CEO, Mr. Skander Malcolm, reinforced the company's achievement, saying:
In what has been one of the most uncertain periods for economies worldwide, the growth in revenue is testament to the high degree of client support. The recovery in Consumer client activity and further growth in Corporate revenue, gives us a great deal of confidence in the strength of the business for the remainder of the year and beyond.
Our growth investments also continue to deliver a more valuable business, with excellent new client activity in Corporate that will underpin future recurring revenue, a stronger and more global Online Sellers segment, and a growing Enterprise segment with a healthy pipeline.
OFX share price summary
The OFX share price has fallen more than 14% when looking at its 12-month chart. A steep drop in March due to COVID-19 brought the company's shares to an all-time low of 90.5 cents. However, a quick rebound occurred, elevating its shares to near its 52-week highs of $1.54 achieved last January.
Nonetheless, the OFX share price has treaded lower more recently, stabilising around the $1.20 mark.
