MoneyMe Ltd (ASX: MME) shares are gaining today after the company released its half-year (H1 FY21) financial results. At the time of writing, the MoneyMe share price has edged 1.3% higher to $1.61.
Let's take a look at how the digital consumer credit business has been performing.
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What did MoneyMe report?
The MoneyMe share price is gaining today after the company reported 12% revenue growth for the financial half year ending 31 December. Revenue of $24 million was up from $21 million in H1 FY20. The company said contracted revenue had increased to more than $20 million.
Net profit after tax (NPAT) of $1.3 million was down from $4.3 million in the previous corresponding half, reflecting a $1.1 million income tax benefit in H1 FY21 compared to a $4.3 million tax benefit in the corresponding half.
Statutory profit before tax (PBT) was $200,000, compared to a $1.6 million loss in H1 FY20. Underlying PBT came in at $5.3 million.
In other news boosting the MoneyMe share price, the company reported a 21% growth in originations to $114 million, up from $95 million in the prior corresponding period. Around 47% of customer originations were driven by returning customers.
Customer receivables ramped up by 32% to $168 million.
Commenting on the half-year results, Clayton Howes, MoneyMe CEO, said:
I am delighted with MoneyMe's profitable growth for the half year ended 31 December 2020 that continues to reflect the increasing diversification of our products and their distribution. It is exciting to see the new funding warehouse facility delivering significantly lower funding costs and new business origination capacity and our core and more recently launched products resonating so well with Generation Now.
Looking ahead, Howes added:
The innovation pipeline is continuing at pace as we continue to invest for massive scale and product diversification opportunities. A fantastic first half that sets the business up well for further high and profitable balance sheet growth.
MoneyMe said it expects revenue and customer receivables growth to accelerate into the second half of the financial year, based on the originations growth reported in Q2 FY21.
MoneyMe share price snapshot
The MoneyMe share price has almost fully recovered from the 69% plunge it faced during the COVID-19-fuelled market panic last February and March. Over the past 12 months, MoneyMe shares are now down 2.4%. That compares to a 0.3% gain on the All Ordinaries Index (ASX: XAO).
So far in 2021, the MoneyMe share price is up 9.5%.
