MoneyMe accelerates lending and revenue
MoneyMe outperforms originations run rate with $108m originations, revenue of $15m and exceeds $230m in gross loan receivables with strong loan unit economics.
Clayton Howes, Managing Director and CEO of MME said, “We are incredibly pleased to report the growth and momentum the business is achieving, with increasing revenues and another set of records in originations and customer receivables. Our business is accelerating with the credit quality of our customers increasing and it is fantastic to see the strong take-up of our recently launched products by our customers and merchants. Another great quarter for the business as it delivers on its strategy to build returns through innovation, scale and technology.”
Record Originations & Gross Customer Receivables
MoneyMe’s originations in Q3 FY21 of $108m, ($51m, Q3 FY20), reflects continued acceleration in originations growth of 57% on Q2 FY21, beating a previous record ($69m). Gross customer receivables of $233m, up 63% on pcp ($143m, Q3 FY20) with growth from the existing Personal Loan and Freestyle products as well as the momentum from the more recently added MoneyMe+ and ListReady products.
The accelerated growth contrasts to relative flat growth within the consumer credit market, reflecting the Group’s ability to attract customers from incumbent consumer credit providers with its Generation Now suite of offers.
Record Revenue & Increasing Returns
Q3 FY21 revenue was $15m ($12m, Q2 FY21) with Q4 FY21 contracted revenue increasing to over $19m. Returns are robust with revenue yield at 29% (32%, 1H FY21) and the average receivable term increased to 35 months (32 months, Q2 FY21).
Increasing operating leverage and cost efficiencies
Funding costs to Q3 FY21 reduced to 6% (9%, 1H FY21) as the Group continues to leverage its bank warehouse facility. The Group is confident in its funding program to support the growth with an unrestricted cash balance of above $11m at 13 April 2021. The Group achieved a further reduction in its core operating costs margin6 to 9% in Q3 FY21 (12%, 1H FY21).
FY21 Gross customer receivables are expected to exceed $265m ($133m FY20).
Strong Credit & Book Quality
The Group is continuing to deliver strong credit book quality with the average Equifax score increasing further to 644 in Q3 FY21 (638, Q2 FY21). COVID-19 hardship payment plan deferrals continue to be insignificant, reducing to 0.1% of gross receivables at Q3 FY21 (0.4% at 1H FY21). Q3 FY21 net charge-offs were stable at 4% (4%, Q2 FY21).