Insights 25th February 2021

How Australia’s fastest growing company reported | Afterpay (ASX:APT) Reporting Results

Australia’s fastest growing company Afterpay (ASX:APT) released its half-year 2020 results and capital raising to expand in the US.

Afterpay reported its net transaction margin rose 110% to $213.9m. So, its total transaction margin now sits at 2.2%.

The business stayed in loss territory. But its loss dropped 151% to $79m.

Underlying sales rose 106% to $9.8b. The group’s total income rose 89% to rose $417.2 million, bolstered by customer and merchant demand in North America and the UK.

The group will be taking over its US subsidiary, co-owned by Matrix Partners, to take full control. To do that, APT is listing in Singapore, raising $1.25 billion in convertible notes listed on SGX.

APT will remain in a trading halt until it makes an announcement about the capital raising or until Monday morning 1 March.

APT is a Bell Potter Buy with a $168.50 target. It’s also backed by Morgan Stanley, Credit Suisse and Ord Minnett. UBS has APT as a Sell.