Novatti (ASX:NOV) - CEO and Managing Director, Peter Cook
CEO and Managing Director, Peter Cook
Source: Novatti
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  • Fintech business Novatti (NOV) achieved a 53 per cent year-on-year (YoY) sales revenue growth to $5.8 million in the December quarter
  • NOV’s payment processing business contributed a 122 per cent YoY increase in quarterly processing revenue to $4.9 million, marking 11 straight quarters of record revenue
  • The digital payments service provider acquired payments business, ATX, who’s set to positively contribute to revenue and expand Novatti’s presence in Southeast Asia
  • Novatti also won acquiring licenses by both Visa and Mastercard which may lead to increased margins and it received a $10.5 million investment as it works towards securing a full banking licence
  • Company shares are up 5.26 per cent to trade at 30 cents

Novatti Group (NOV) experienced a 53 per cent year-on-year (YoY) growth in sales revenue to $5.8 million in the December 2021 quarter.

Novatti is a digital payments service provider company that’s dedicated to making payments fast, simple, and secure. Essentially, it enables businesses to pay and be paid, from any device, anywhere.

The fintech stock’s payment processing business contributed a 122 per cent YoY increase in quarterly processing revenue to $4.9 million. According to Novatti, this marks 11 straight quarters of record revenue for the payment processing business.

Managing Director Peter Cook said achieving the $5.8 million in revenue means the company reached the halfway mark of FY22 with two consecutive quarters of record revenue.

“These strong results highlight that Novatti’s long term strategy is delivering. Following many years of investment, Novatti has now established a business that has global scale. This scale is underpinned by a payments ecosystem that can be leveraged by businesses big and small to pay and be paid,” he said.

Novatti further strengthened its expansion strategy by acquiring Malaysian payments business, ATX.

“This acquisition further extends Novatti’s reach into the rapidly growing payments
demand centre that is Southeast Asia, as ATX brings with it a network of 30,000 plus payments touch points. Importantly, with Novatti now having completed this transaction, ATX revenue will be a strong addition within Novatti’s reporting going forward.”

In November, Novatti was awarded principal acquiring licenses from Visa and Mastercard. The new licenses will reportedly lead to increased margins and potentially larger business opportunities, while any revenue generated from the acquiring licenses will depend on take-up of services.

Additionally, Novatti closed a Series A funding round for its proposed new banking business. This saw an investment of $10.5 million, enabling the company to operate under a restricted banking licence while working towards its long term goal of securing a full banking licence.

The funding is committed by investors provided that regulatory approval for this new business is obtained before the end of February 2022.

Novatti reported operating cash outflow of $2.8 million, which largely went towards product manufacturing and operating costs and staff and admin costs. A further $5.8 million was spent on investing activities, and about $1.3 million was generated by financing activities.

The company ended the quarter with a cash balance of $12.99 million and an estimated 4.64 quarters left of available funding.

For the second half of FY22, Novatti plans to continue delivering on its growth strategy with the aim of realising further growth.

Company shares were up 5.26 per cent to trade at 30 cents at 1:03 pm AEDT.

NOV by the numbers
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