Cash Converters International (CCV) H2 2024 earnings summary

Executive summary

• Revenue grew 26% year-over-year to $382.6m, driven by organic growth and franchise store acquisitions in Australia, UK, and New Zealand, with a statutory profit of just over AUD 17 million for FY 2024 despite regulatory changes impacting small loan products.

• Operating EBITDA increased 21% year-over-year to $69.1m, with cost inflation managed and operating leverage maintained.

• Transitioned away from small credit contracts, diversifying the loan book and expanding into new product lines.

• 50 stores added or acquired during the year, focusing on both company-owned and franchise acquisitions in Australia and the U.K., with a strong pipeline for further acquisitions.

• Exited the vehicle finance business and increased the securitization facility to support lending growth.

Financial highlights

• Revenue: $382.6m, up 26% year-over-year; operating EBITDA: $69.1m, up 21% year-over-year.

• Net operating profit rose 4% year-over-year to $20.8m, impacted by higher interest costs and a shift in loan product mix.

• Gross loan book expanded 6% year-over-year to $288.0m, with growth in medium loans and new line of credit offsetting regulatory-driven decline in small loans.

• Over 770,000 personal loan applications received in FY 2024.

• 8th consecutive half-year dividend declared, totaling AUD 50 million returned to shareholders over four years.

Outlook and guidance

• Focused on growing company-owned store networks in the U.K. and Australia, with a pipeline of 39 stores in Australia and 143 in the U.K. under consideration.

• Expect continued loan book growth, especially in new products, while maintaining disciplined capital deployment.

• Securitization facility increased to AUD 200 million, supporting further lending expansion.

• Net loss rates expected to remain stable, supported by advanced credit models.

• No anticipated change in dividend policy.