Australian fintech pioneer Prospa Group posts H1 revenue in excess of $145 million
Prospa Group have provided a trading update for the half year ending 31 December 2023, with the highlight being H1 revenue in excess of $145 million.
Prospa’s highlights for the half year include:
- Total Originations 2 of $308.3 million were down 27% on pcp (H1 FY23: $424.8 million). New Zealand originations were down 32% on pcp to $63.0 million (H1 FY23: $93.1 million). Lower originations reflect the deliberate tightening of credit settings.
- Closing gross loans have reduced to $807.4 million in December 2023, down 5.6% on pcp (H1 FY23: $855.8 million) and 6.4% on the previous half (H2 FY23: $862.2 million).
- Revenue of $145.4 million, a 7.4% increase on pcp (H1 FY23: $135.3 million), aided by maintaining yield at 34.9% (H1 FY23: 34.8%) in a high funding cost environment, notwithstanding a tightened risk appetite.
- Statutory profit before tax for the half is expected to be c. $9 million profit, compared to pcp (H1 FY23) of a $6.3 million loss. This increase is predominantly driven by the non-cash ECL provision release in the half of $17.5 million.
- EBITDA4 for the half is expected to be c. $13 million profit, an increase on pcp (H1 FY23: $0.2 million). EBITDA, excluding the non-cash ECL provision release of $17.5 million, is expected to be a c. $4 million loss.
- Total cash ended at $117.2 million
Prospa Co-Founder and Chief Executive Officer, Greg Moshal, said, “The half-year results have been mixed; however, Prospa’s proactive steps to credit management have helped us navigate a challenging economic environment. We have also continued to deliver on our product and technology roadmap, with all new products now originating on our new platform. We’re pleased to acquire Zip Business’s Australian performing loan book, which exemplifies our ability to execute on opportunities that further unleash the potential of small business.”
