Novatti announce turnaround progress clear as full year revenue exceeds $42 million
ASX-listed fintech leader Novatti Group‘s full year results for FY24 are starting to see its turnaround progress focus on cash flow making a deeper impact on the business, with much more to come.
Across FY24 the transformation saw many initiatives implemented, including streamlining Novatti’s business portfolio from 12 separately run businesses down to four core divisions, undertaking a strategic review of all business assets and repositioning Novatti to leverage its strength in digital payments for high-margin revenue opportunities.
The impact of all these individual initiatives is highlighted by the progressive financial results, with revenue up 10% YoY to $42.9 million. Normalised operating expenses fell 19%, while underlying EBITDA improved 16%.
Commenting on the results, Novatti Group CEO Mark Healy (pictured), stated, “Put simply, the numbers that we want to see going up are going up and the numbers we want to see going down are going down.
“The traction and future growth potential of the core Payments AU/NZ division is clear from FY24’s results, with this segment already delivering the largest gross margin contribution across Novatti.
“Importantly, much of the visible traction in Novatti’s turnaround really only took effect from Q4 FY24 and we expect the real impact will be seen in FY25 onwards.
“We are committed to deepening Novatti’s turnaround as we continue the actions required to achieve our 3-year, 70%+ margin target and run rate of positive operating cashflow by the end of H1 FY25.
“We will use FY25 to accelerate the alignment to these targets, which will likely result in further opportunities for optimisation and divestment in non-core business areas to strengthen Novatti’s digital payments business and lift financial performance further,” Healy ended.
