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The digital lender has reported $8 million in net profit after tax along with record revenue of $117 million for the first half of financial year 2023.
MONEYME reported more than $60 million in gross revenue for the quarter in its 2Q23 trading update, revealing growth of 143 per cent on the previous corresponding period. The digital lender suggested that strong revenue flows are expected to continue as the “full benefit of 4x’ing the loan book in FY22 is realised”.
As a result, the digital lender has increased its full-year gross revenue target from $200 million to $220 million.
Following two consecutive years of high growth and statutory losses in FY21 and FY22, MONEYME announced a shift in focus to statutory profits at the beginning of FY23.
Its loan book’s core operating expenses reduced to less than 3 per cent in the second quarter, which was down from 11 per cent in 2Q22 and 5 per cent in 1Q23.
MONEYME’s loan book continued to hold relatively steady in line with its moderated growth strategy, ending the first half of FY23 at $1.24 billion.
The digital lender’s car finance product, Autopay, continued to drive a shift into secured assets. As a percentage, secured assets of the book rose 41 per cent at the end of the first half, up from the 38 per cent recorded at the end of FY22.
Chief executive and managing director of MONEYME, Clayton Howes, said: “We are pleased to announce statutory profits and record revenue in the first half, beating analyst expectations.
“Building from strong results in the first quarter, the momentum continued into the second quarter and has seen us upgrading our outlook on revenue and profit for the full year.
“Our return to statutory profitability after a prolonged period of high growth is not only a result of a shift in near-term business strategy in response to the macro environment, it is also a continuation of our commitment to drive profitable growth and a testament to the quality and proficiency of our team.”
New board member appointed
In late December 2022, MONEYME appointed Rachel Gatehouse to its board of directors, becoming chair of its audit and risk management committee.
Ms Gatehouse founded the renovation tech platform Clyde Street and carries over 30 years of financial services experience across the asset finance, motor finance, retail banking, structured lending, and BNPL sectors.
[RELATED: MoneyMe welcomes new board member, approves funding structure]
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