Afterpay Touch Group Limited is pleased to announce a business update for the period ended 31 October 2019

Published

5 years ago

November 13, 2019

Afterpay Touch Group Limited (ASX: APT) (“Afterpay” or the “Group“) is pleased to announce a business update for the period ended 31 October 2019.

Highlights and Group Performance

GROUP (Unaudited)	4 month period ended 31 October 2019	Compared to: 4 month period ended 31 October 2018	Compared to: 4 month period ended 30 June 2019
Underlying Sales	$2.7 billion	110% Advertisement	23%
Active Customers¹ (as at 31 October 2019)	6.1 million	137%	32%
Active Merchants¹ (as at 31 October 2019)	39,450	96% Advertisement	22%

Growth and performance continue across all geographies and channels with global underlying sales of $2.7 billion in the 4-months to 31 October 2019, a 110% increase compared to the previous corresponding period (pcp). Current annualised underlying sales is in excess of $8.5b.²
There were 6.1 million active customers globally at the end of October, a 137% increase on pcp
- On average, Afterpay onboarded over 15,000 new customers per day in October, representing its largest customer acquisition month on record and accelerating from approximately 12,500 customers per day in July.
Purchasing frequency, loss rates and customer lifetime value are improving the longer that customers are on our platform:
- In Australia and New Zealand, customers who joined Afterpay during FY15-17 are now purchasing, on average, approximately 22x per year. Newer cohorts are following a similar upward trend, with the FY18 and FY19 cohorts purchasing, on average, 14x and 7x per year respectively.
Nearly 40,000 merchants are active on the Afterpay platform, almost double the pcp, reflecting the onboarding of both higher margin SMB merchants and key new enterprise merchants.
A number of major brands have either recently integrated or are in the process of onboarding including eBay (AU), Ulta (US), Finish Line (US), Marks & Spencer (UK), David Jones (in-store AU), and Myer (in-store AU). Collectively, it is estimated that these merchants represent addressable underlying sales well in excess of $10 billion³.
Year to date, Group merchant revenue margin (unaudited) is in line with FY19 levels, supported by improving revenue margins in the US and UK.
Year to date, Group Gross Loss, Net Transaction Loss (NTL) and Net Transaction Margin (NTM) (all unaudited) remain in line with FY19 levels, notwithstanding higher underlying sales contribution from the newer, higher early stage loss markets of the US and UK.
The Afterpay platform continues to add value to our merchants with Afterpay’s shop directory contributing over 10 million lead referrals globally in October alone, representing the highest month of referrals ever.
Strategic agreement with Mastercard in Australia and New Zealand will support our mid-term growth.
A $200 million private placement and proposed strategic partnership with leading US based technology investor, Coatue Management. Proceeds will be raised at $28.50, representing a 2.4% discount to the last closing share price and a 3.8% premium to the 5 day VWAP, and be targeted to global platform expansion opportunities beyond mid-term plan deliverables.
Progress made in further strengthening a majority independent board with the appointment of a new US based director, Mr Gary Briggs, from 1 January 2020.

ANZ Market Update

Growth continues in ANZ with underlying sales of $1.9bn in the 4-months to 31 October 2019.
In-store continues to be the key growth driver, representing 23% of total underlying sales in FY20 year to date, up from 18% in FY19. Afterpay in-store is now available at almost 29,000 shopfronts, up from 23,600 at the end of June 2019.
Over 3 million active customers in ANZ and over 33,000 merchants as at 31 October 2019.
Merchants that have recently gone live or signed with Afterpay include:

Dymocks (in-store)	TerryWhite Chemmart (in-store)	Agoda (online)

Swarovski (online)	Shein (online)	Myer (in-store)

Marks & Spencer (online)	My Deal (online)	David Jones (in-store)

Appliances Online Advertisement

In a little over 12 months since launching health services, Afterpay is now being offered in over 2,500 practices in the dental and optical space nationally.
Afterpay has recently entered into a partnership with Bupa Dental, Australia’s largest corporate dental group, which will see Afterpay made available to the more than 500,000 patients they treat each year across more than 200 dental practices around Australia.
Loss performance has continued to trend positively on a year to date basis relative to FY19 levels.
Over 95% of GMV in ANZ is generated from returning customers.
Afterpay estimates that it is one of the largest lead referrers in ANZ, with well over 4 million referrals provided to merchants in the month of October.
Entered into a strategic partnership with Mastercard in the Australian market to help scale Afterpay’s business and deliver services to merchants with greater efficiency and flexibility. In addition, Afterpay will utilise Mastercard data and services and technology capabilities. Further information on this collaboration will be provided as products and services are introduced to the Australian market.

Partnership with eBay Australia

Afterpay is pleased to announce it has reached an agreement for our service to be offered on eBay Australia’s marketplace; expected to go live in the 2020 calendar year.
eBay Australia is the largest shopping site in the country with 11-million unique monthly visitors.
eBay Australia will be giving its 40,000 Australian SMBs the ability to access the Afterpay service for their eBay customers.
The partnership represents Afterpay Australia’s largest online arrangement to date which allows both companies to align on a mutual approach of adding value to merchants by helping them access new and repeat customers.

US Market Update

Strong growth continued in the US with underlying merchant sales reaching $0.7bn in the first 4-months to 31 October 2019. Current annualised underlying sales is in excess of $2.5 billion based on the month of October.
Customer uptake is increasing at a faster rate, with 2.6 million active customers at 31 October 2019, up 51% since 30 June 2019.
Recorded highest monthly customer acquisition in the US in October, with over 9,000 new customers acquired per day on average.
Year to date, Gross Loss experience has improved in the US relative to FY19 levels as our returning customer base increased. Merchant revenue margins are also ahead of FY19 levels on a year to date basis.
More than 9,000 active or currently integrating merchants as at 31 October 2019, including recently onboarded brands such as:

Ulta	Ruggable	FragranceNet.com	Madewell

Finish Line	Bombas	HAUS LABORATORIES	Outdoor Voices

PacSun	Shiseido Brands

The Afterpay platform continues to add value to US merchants with the Company’s shop directory generating over 5 million retailer referrals in the month of October.

UK Market Update

Over $100m of underlying sales in the 4-months to 31 October 2019. Current annualised underlying sales is in excess of $0.4 billion based on October.
Over 400,000 active customers since launch in May 2019.
UK customer numbers remain higher than the US at the equivalent stage of lifecycle despite being a smaller market.
While still in its infancy, merchant revenue margins and loss performance has trended positively on a year to date basis.
Successful launch of the Clearpay app in October supporting meaningful lead generation with over 0.5 million referrals across the Clearpay website and app in October.
Partnership with UK-based multinational retailer Mark & Spencer (M&S) recently commenced. It is one of Afterpay’s largest merchant partnerships to date and is expected to contribute significantly to our UK performance over time.
Approximately 330 active or currently integrating merchants as at 31 October 2019 including recently onboarded brands such as:

Marks & Spencer	The Hut Advertisement	Footlocker	Pro Bike Kit

Look Fantastic	MyProtein	Zavvi	IWOOT

Investment and proposed strategic partnership with Coatue Management (“Coatue”) to support continued international expansion

Afterpay today has entered into a subscription agreement for a A $200 million private placement with leading US based technology investor, Coatue.
Coatue will acquire new Afterpay shares at $28.50, representing a 2.4% discount to the last closing share price on Tuesday, 12 November of $29.19 per share, and representing a 3.8% premium to the 5 day VWAP⁴ up to and including Tuesday, 12 November. Completion of the placement is planned for later this month.
The shares issued to Coatue will be subject to a 12 month escrow arrangement reflecting the strategic nature of the investment.
Investment proceeds will be targeted to global platform expansion opportunities beyond mid- term plan deliverables.
In connection with the investment, a non-binding term sheet has been agreed for a strategic partnership where Coatue will leverage its data science expertise to support Afterpay in its development of retail data analytics and future data driven products. Subject to formal agreement, Coatue and Afterpay will collaborate on tools and capabilities, empowering Afterpay to pursue its goal of being the world’s most loved way to pay.
Coatue, founded by Philippe Laffont and Thomas Laffont in 1999, is one of the largest dedicated technology funds in the world, having invested in a number of global technology platforms. Coatue currently manages approximately US$17 billion in assets on behalf of individuals, endowments, foundations, and other institutional investors.

Governance

We have made progress in our commitment to enhance the Company’s Board with the appointment of a new independent Director.
Mr Gary Briggs will be joining the Company as a Non-Executive Director from 1 January 2020.
- Mr Briggs is one of the most experienced marketing leaders in the digital sector having worked in a number of senior executive positions including, most recently, Chief Marketing Officer at Facebook from 2013-2018. Prior to Facebook, Mr. Briggs led marketing at industry leading technology companies including Motorola Mobility, Google, eBay and PayPal. He is also currently a board member of Etsy and Petco.
Our global board search for additional Directors remains ongoing, and we look forward to providing further updates at the relevant time.

Regulatory Update (Australia)

We welcome the opportunity to engage with the RBA in relation to surcharging, as part of its broad based, periodic review of the payments industry next year. It is important to note that Afterpay provides a far more comprehensive service to retailers than simply being a payment system.
We welcome comments from the Government that they are supportive of new technologies bringing competition to the marketplace and the establishment of a Senate Select Committee charged with better understanding the tech sector and how it can be better supported by regulators and policy makers.
Afterpay continues its support for a Code of Practice for the ‘buy now, pay later’ industry.
External auditor Mr Neil Jeans of Initialism is due to deliver a final independent audit report later this month. The Company remains committed to ensuring its AML/CTF compliance is robust.

Awards

Afterpay was honoured to be included in the global 2019 Fintech 100, recently compiled by KPMG and H2 Ventures.

SOURCE Afterpay

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Redefining Financial Frontiers: Nucleus Software Celebrates 30 Years with Synapse 2024 in Singapore

Published

8 hours ago

November 23, 2024

CISION (PR Newswire)

redefining-financial-frontiers:-nucleus-software-celebrates-30-years-with-synapse-2024-in-singapore

SINGAPORE, Nov. 23, 2024 /PRNewswire/ — The thriving India–Singapore partnership in banking and technology reached a new milestone as Nucleus Software celebrated 30 years of transformative innovation at Synapse 2024, held in Singapore. The event underscored the company’s role in redefining financial services across Southeast Asia (SEA) and the globe, bringing together leaders in finance and technology to explore a shared vision for the future of banking.

Synapse 2024 celebrated 30 years of Nucleus Software’s leadership in driving transformative change across Singapore and Southeast Asia’s financial ecosystem. The event also shone a spotlight on the Global Finance & Technology Network (GFTN), an initiative supported by the Monetary Authority of Singapore (MAS) to champion responsible technology adoption. The event highlighted the deepening synergies between India and Singapore, driven by their shared commitment to innovation, cross-border collaboration, and financial inclusion. As the financial services sector undergoes rapid evolution with advancements in artificial intelligence, blockchain, and digital banking, these partnerships are setting the stage for a more connected, resilient, and inclusive global ecosystem.

Vishnu R. Dusad, Co-founder and Managing Director of Nucleus Software, reflected on the milestone: “For over 30 years, we’ve had the privilege of aligning our journey with Singapore’s ascent as a global financial powerhouse. Back in 1994, when we chose to go East instead of West, it was a bold and emotional decision—guided by our belief in Singapore as a hub for innovation and collaboration. We saw then what remains true today: Singapore is at the heart of the global financial landscape, a place where new ideas take root, and partnerships thrive.”

The event brought together a distinguished array of participants, highlighting the transformative potential of India–Singapore collaboration. Mr. Piyush Gupta, CEO of DBS Group and the Guest of Honor, set the tone for the event with his opening remarks, emphasizing the transformative role of big tech in reimagining scalable, customer-centric financial services in the digital age.

Following his address, key speakers enriched the discussions with their insights. Mr. Sopnendu Mohanty, Chief Fintech Officer at the Monetary Authority of Singapore and Group CEO-Designate of The Global Finance & Technology Network (GFTN), underlined the importance of fostering responsible technology adoption and building inclusive financial ecosystems. Mr. Vinod Rai, globally respected public policy expert, Distinguished Visiting Research Fellow at the National University of Singapore, and former Comptroller and Auditor General of India, shared his perspectives on governance and policy frameworks in financial systems. Mr. S.M. Acharya, Chairman of Nucleus Software and former Defence Secretary of India, offered a visionary outlook on leveraging technology to modernize and secure banking frameworks. Finally, Mr. Pieter Franken, Co-founder and Director of GFTN (Japan), a global FinTech pioneer and deep tech innovator, discussed the future of decentralized finance and its implications for the financial sector.

The event showcased the transformative role of technology in global financial systems, emphasizing innovations that set benchmarks for scalability and inclusivity. Panelists discussed the importance of localized solutions, the challenges of cross-border integration, and leveraging dual business models to optimize capital and foster public participation. The dialogue highlighted the need for common standards, unified frameworks like APIs, and collaborative efforts to accelerate financial inclusion and drive global connectivity in the digital age.

For 30 years, Nucleus Software has consistently introduced advanced lending and banking solutions that support financial institutions’ evolving needs in Singapore and South East Asia. Driven by lean development methodologies like Acceptance Test-Driven Development (ATDD) and Continuous Integration/Continuous Delivery (CICD), Nucleus Software continues to push boundaries in efficient, flexible, and secure financial technology.

Photo: https://mma.prnewswire.com/media/2565374/Synapse_2024.jpg
Logo: https://mma.prnewswire.com/media/2565373/Nucleus_Software_Logo.jpg

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Fintech PR

ROYAL CANADIAN MINT REPORTS PROFITS AND PERFORMANCE FOR Q3 2024

Published

16 hours ago

November 22, 2024

CISION (PR Newswire)

OTTAWA, ON, Nov. 22, 2024 /PRNewswire/ — The Royal Canadian Mint (the “Mint”) announces its financial results for the third quarter of 2024 that provide insight into its activities, the markets influencing its businesses and its expectations for the next 12 months.

“As the markets continue to change, the Mint is proving its ability to seize on new opportunities thanks to its diversified structure and flexible business strategy” said Marie Lemay, President and CEO of the Royal Canadian Mint.

The financial results should be read in conjunction with the Mint’s annual report available at www.mint.ca . All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Financial and Operational Highlights

The financial results for the third quarter of 2024 were ahead of target and higher than 2023 levels. Higher gold market pricing and foreign circulation volumes combined with lower fixed costs were the main drivers for the quarter over quarter increase. These increases were partially offset by lower than expected bullion volumes from the continued soft demand in the global bullion market. The Mint expects to meet its financial goals for 2024, as set out in its 2024-2028 Corporate Plan, the Mint’s Leadership team continues to actively monitor its status.
Consolidated revenue decreased to $252.7 million in 2024 (2023 – $360.6 million).
Revenue from the Precious Metals business decreased to $217.6 million in 2024
(2023 – $328.4 million):
- Gold bullion volumes decreased 38% quarter over quarter to 106.1 thousand ounces (2023 – 170.1 thousand ounces) while silver bullion volumes decreased 20% to 2.7 million ounces (2023 – 3.4 million ounces).
- Gold and silver market prices increased quarter over quarter by 27% and 23%, respectively.
- Sales of numismatic products decreased 12% quarter over quarter mainly due to the high demand in 2023 for the Queen Elizabeth II’s Reign products.
Revenue from the Circulation business increased to $35.1 million in 2024
(2023 – $32.2 million):
- Revenue from the Foreign Circulation business increased 77% quarter over quarter, a reflection of higher volumes produced and shipped in 2024 as compared to 2023.
- Revenue from Canadian coin circulation products and services decreased 12% quarter over quarter as fewer coins were required to replenish inventories, combined with lower program fees in accordance with the memorandum of understanding with the Department of Finance.
Overall, operating expenses decreased 27% quarter over quarter to $28.3 million (2023 – $36.0 million) mainly due to planned reductions in consulting and workforce expenses.

Consolidated results and financial performance
(in millions)

		13 weeks ended				39 weeks ended
				Change					Change
	September 28, 2024		September 30, 2023 Advertisement	$	%		September 28, 2024	September 30, 2023	$	%
Revenue	$	252.7 Advertisement	$ 360.6	(107.9)	(30)		$ 861.2	$ 1,841.8	(980.6)	(53)
Profit (loss) for the period	$ Advertisement	5.7	$ (5.8)	11.5	(198) Advertisement		$ 24.1	$ 15.0	9.1	61
Profit (loss) before income tax and other items ¹	$ Advertisement	1.4	$ (8.7)	10.1	(116)		$ 12.3	$ 23.4	(11.1)	(47) Advertisement
Profit (loss) before income tax and other items margin²		0.6 %	(2.4) %				1.4 %	1.3 %

(1) Profit (loss) before income tax and other items is a non-GAAP financial measure. A reconciliation from profit for the period to profit before income tax and other items is included on page 13 of the Mint’s 2024 Third Quarter Report.

(2) Profit (loss) before income tax and other items margin is a non-GAAP financial measure and its calculation is based on profit before income tax and other items.

	As at
September 28, 2024 Advertisement				December 31, 2023		$ Change		% Change
Cash		$	58.4	$	59.8		(1.4)	(2) Advertisement
Inventories		$	71.5	$	68.8		2.7	4
Capital assets		$	174.2 Advertisement	$	173.0		1.2	1
Total assets		$	376.8	$	380.4		(3.6) Advertisement	(1)
Working capital		$	99.2	$	97.8		1.4	1

As part of its enterprise risk management program, the Mint continues to actively monitor its global supply chain and logistics networks in support of its continued operations. Despite its best efforts, the Mint expects changes in the macro-economic environment and other external events around the globe to continue to impact its performance in 2024. The Mint continues to mitigate potential risks as they arise through its enterprise risk management process.

To read more of the Mint’s Third Quarter Report for 2024, please visit www.mint.ca.

About the Royal Canadian Mint
The Royal Canadian Mint is the Crown corporation responsible for the minting and distribution of Canada’s circulation coins. The Mint is one of the largest and most versatile mints in the world, producing award-winning collector coins, market-leading bullion products, as well as Canada’s prestigious military and civilian honours. As an established London and COMEX Good Delivery refiner, the Mint also offers a full spectrum of best-in-class gold and silver refining services. As an organization that strives to take better care of the environment, to cultivate safe and inclusive workplaces and to make a positive impact on the communities where it operates, the Mint integrates environmental, social and governance practices in every aspect of its operations.

For more information on the Mint, its products and services, visit www.mint.ca. Follow the Mint on LinkedIn, Facebook and Instagram.

FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

This Earnings Release contains non-GAAP financial measures that are clearly denoted where presented. Non-GAAP financial measures are not standardized under International Financial Reporting Standards (IFRS) and might not be comparable to similar financial measures disclosed by other corporations reporting under IFRS.

This Earnings Release contains forward-looking statements that reflect management’s expectations regarding the Mint’s objectives, plans, strategies, future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements are typically identified by words or phrases such as “plans”, “anticipates”, “expects”, “believes”, “estimates”, “intends”, and other similar expressions. These forward-looking statements are not facts, but only estimates regarding expected growth, results of operations, performance, business prospects and opportunities (assumptions). While management considers these assumptions to be reasonable based on available information, they may prove to be incorrect. These estimates of future results are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Mint expects. These risks, uncertainties and other factors include, but are not limited to, those risks and uncertainties set forth in the Risks to Performance section of the Management Discussion and Analysis in the Mint’s 2023 annual report, as well as in Note 9 – Financial Instruments and Financial Risk Management to the Mint’s Audited Consolidated Financial Statements for the year ended December 31, 2023. The forward-looking statements included in this Earnings Release are made only as of November 20, 2024 and the Mint does not undertake to publicly update these statements to reflect new information, future events or changes in circumstances or for any other reason after this date.

For more information, please contact: Alex Reeves, Senior Manager, Public Affairs, Tel: (613) 884-6370, [email protected]

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Fintech PR

OIVE and ViniPortugal celebrate closing of joint campaign that reached 100 million consumers

Published

17 hours ago

November 22, 2024

CISION (PR Newswire)

MADRID and PORTO, Portugal, Nov. 22, 2024 /PRNewswire/ — For three years, A Shared Passion showed European consumers the quality and unparalleled versatility of Iberian wines. The program reached over 100 million consumers with advertising in airports, train stations, press trips, digital content, and other actions with opinion leaders.

The wine interprofessionals of Spain (OIVE) and Portugal (ViniPortugal) celebrated the closing of their ambitious joint campaign A Shared Passion with flagship events in Madrid and Porto. The closing event in Spain took place in Madrid’s iconic Calle Alcalá, while in Portugal, the World of Wine (WOW) in Porto was the perfect setting to present the achievements of the international collaboration. Both ceremonies were very well received by the press and the wine sector, highlighting the impact of the promotional actions that reached more than 79.2 million travelers in key transport infrastructures.

The campaign included 22 study trips, taking 150 specialized journalists to explore the world of wine in both countries and generating publications that reached nearly 15 million European consumers.

On social media, the A Shared Passion profile on Instagram exceeded 15,000 followers, consolidating its presence in the digital sphere. In addition, exclusive activities such as workshops and VIP dinners contributed significantly to this initiative’s global impact.

The final events were honored by the presence of opinion leaders, such as Masters of Wine Pedro Ballesteros and Dirceu Vianna Júnior, who moderated round tables with the presidents of OIVE, Fernando Ezquerro, and ViniPortugal, Frederico Falcão. The conference concluded with masterclasses that highlighted Spain and Portugal’s extraordinary oenological diversity, reinforcing the relevance of the sector in the economic, social, and environmental sustainability of both countries.

With funding from the European Union, A Shared Passion highlighted not only the quality and authenticity of Iberian wines but also their strategic role in the sustainable development of numerous municipalities. This initiative underlines the passion with which Spanish and Portuguese wines are made, reflecting their rich traditions and commitment to the future.

For more information: www.asharedpassion.com

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