NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

UPDATE 2-Australia's Afterpay explores global listing as first-half sales double

Published 25/02/2021, 09:26 am
© Reuters
ZIP
-
APT
-
AFRM
-

(Adds details about U.S. buyout, results)

Feb 25 (Reuters) - Afterpay APT.AX is exploring an additional stock listing abroad amid increased U.S. investor interest, the Australian buy-now-pay-later firm said on Thursday after reporting a more than doubling in first-half sales.

The Australian fintech and its global competitors such as Sweden's Klarna, Affirm AFRM.O and Zip Co Z1P.AX have witnessed explosive growth since the pandemic locked down much of the world and turned more people toward online shopping.

Afterpay's stock has climbed more than 1,500% since March, establishing itself as Australia's 12th most valuable company.

Afterpay also said it was raising A$1.25 billion ($995 million) through convertible notes in a complex deal to buy out Matrix Partners' share of its U.S. business - which accounts for 43% of its sales. The United States is also the industry's key growth market where it tussles with fast-growing Klarna.

Klarna, which is reportedly about to tap more private funding, is posting its full-year results later on Thursday.

Afterpay's statutory loss more than doubled to A$79.2 million as robust growth of its UK business pushed the unit's valuation higher and raised the value of a put option held by another company. Zip also posted a significantly bigger half-year loss after buying out New York-peer Quadpay.

While Afterpay's gross transaction losses fell to 0.7% - suggesting fewer customers were missing payments - margins also slightly fell to 2.2% from six months ago.

The value of transactions done through Afterpay hit A$9.8 billion in the six months to Dec. 31, twice that of the A$4.8 billion processed a year ago, supported by strong holiday shopping.

Active customers shot up 1.9 million to 13.1 million in the three months to December.

($1 = 1.2547 Australian dollars)

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Americans take to 'buy now, pay later' shopping during pandemic, but can they afford it?

EXCLUSIVE-Australia's BNPL boom pushes identity theft to record, data shows

FOCUS-Buy now, pay whenever? Lockdown lift for online shopping loans

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.