Novatti reports an increase in revenue as expenses reduced and transformation is underway
ASX-listed payments leader Novatti have released its report on the half year to 31 December 2023 (H1 FY24).
The report tracks the progress Novatti has made since the new leadership team began in July 2023, when they moved quickly to implement a clear strategy focused on:
- Simplifying the business
- Becoming market and customer led
- Ultimately lifting financial performance
This strategy is underpinned by core financial targets of positive operating cashflow by mid-2024 and 70%+ margins within three years.
The H1 FY24 report highlights that the transformation of Novatti under this strategy is taking hold, with positive results including:
- 12.1% increase in revenue on H2 FY23 to $21.4 million
- 11% decrease in expenses on H2 FY23 to $15.2 million
- 24% growth in H2 FY23 Payments AU/NZ GTV with $3.4 billion annualised run rate
- External funding for growth initiatives – AUDD and International Bank of Australia
Importantly, the above expenses result does not take into account the impact of the $4 million+ annualised cost-reduction program announced and implemented after the completion of the half year.
Commenting on the results, Novatti CEO, Mark Healy, said, “The half year began with a new leadership team in place and we moved quickly to implement a clear strategy moving forward. This strategy is focused on simplifying the business, becoming market and customer led, and ultimately lifting financial performance. Most importantly, this strategy is underpinned by core financial targets of positive operating cashflow by mid-2024 and 70%+ margins within three years.”
“We are now deep into the implementation of this strategy and the broader transformation of Novatti’s business, with positive results emerging. Most notably, revenue is up 12.1%, and expenses are down 11% (HoH).”
“Novatti continues to be underpinned by a huge market opportunity that remains to be captured, with 45% of Australian businesses acknowledging the need to improve their payment systems.”
“Going forward, we remain committed to our positive cashflow target in mid 2024, while we continue to position Novatti for longer term margin growth. With revenue now up and expenses moving down, our transformation is well underway.”
Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of Novatti Group Limited.
