- Digital payment specialist IOUpay (IOU) has announced a 17 per cent decrease in revenue to $2.8 million for the first half of the 2021 financial year
- The lower revenue reflects increased spending on compliance and professional fees despite cutting costs on marketing, travel, employee benefits and more
- However when factoring in all income, total revenue for the half-year increased by 7.35 per cent to $3.7 million
- Despite that, the fintech stock incurred a comprehensive net loss of $1.38 million — an 8 per cent increase on the $1.28 million loss in the prior corresponding period
- Overall, IOU had a transformative period, which involved a rebranding, new contracts, an improved platform, and raising about $14 million from investors
- At the end of the half-year, IOUpay had $8.5 million in cash — a significant increase from having just over half a million at the start
- Company shares are up 1.75 per cent and trading at 58 cents
IOUpay (IOU) has announced a 17 per cent decrease in revenue from continuing operations to roughly $2.8 million for the first half of the 2021 financial year.
The digital payment specialist says the lower revenue can be attributed to an increased expenditure on compliance and professional fees. However when factoring in all income, IOUpay's total revenue for the half-year increased by 7.35 per cent year-on-year to $3.7 million.
The company also cut costs on marketing, travel, employee benefits, finance costs and impairment expenses.
Despite that, IOU incurred a comprehensive net loss of $1.38 million, which marks an 8 per cent increase on the $1.28 million loss in the prior corresponding period.
IOUpay had a transformative half-year which involved a rebranding and a name change from 'Isentric' (ICU) to 'IOUpay' (IOU) to better reflect a renewed focus on its fintech services in Malaysia and Indonesia.
The fintech stock provides mobile banking and digital purchase and payments for the banking and corporate sectors in Southeast Asia.
Following its rebranding, IOU signed merchant service agreements with two payment gateway providers in Malaysia — one being in the top three in the country.
IOUpay also got a tick of approval from a card issuing and merchant partnership bank of one of the payment gateways. This enabled the company to process buy now, pay later transactions from its merchant customers using credit and debit card payments. The bank is one of Malaysia’s largest commercial banks with over 7000 eCommerce merchants and 10,000 in-store merchants.
The company ended the half-year period in a much better financial position then it started with due to conducting three capital raises.
At the turn of the half-year period, IOUpay raised about $1.5 million followed by another $2 million in August. In November, the company raised $10.5 million from institutional and sophisticated investors.
IOUpay rounded off the half-year with $8.5 million in cash compared to the $578,063 it started with.
Company shares are up 1.75 per cent and trading at 58 cents at 10:32 am AEDT.