Afterpay Touch rallies after FY earnings

Afterpay Touch shares have hit a two-month high after the buy-now, pay-later company reported its rapid growth had continued with full-year underlying sales up 140 per cent to $5.2 billion.

At 1030 AEST Afterpay shares were up 7.1 per cent to $27.71, their highest level since late June and not far from their all-time high of $28.46 hit on May 7.

Afterpay reported flat full-year underlying earnings despite spending heavily to launch and grow its business in the US and UK.

The buy now, pay later provider reported an 86 per cent jump in income for the 12 months to June 30 as customer numbers more than doubled to 4.6 million, with pro forma underlying earnings coming in at $35.5 million.

Its statutory loss blew out to $42.9 million from $9.0 million due to the $44.8 million impact of one-off costs and non-cash items including share-based payments and the application of new accounting standards.

Afterpay said it had added 200,000 active customers in the United Kingdom in the 15 weeks since it launched under the Clearpay name.

Overall Afterpay said it had 5.2 million active customers as of August 23, including 2.1 million in the US, and was adding over 12,500 new ones a day.

Its underlying sales grew 140 per cent to $5.2 billion, with Afterpay’s net transaction margin holding at 2.3 per cent.


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