Cuscal (CCL) H2 2024 earnings summary

Executive summary

• Consolidated Profit After Tax rose 21% year-over-year to $31.6m, with adjusted EBITDA up 22% to $56.2m and Net Operating Income up 18% to $284.5m, driven by transaction growth, new clients, and higher net interest income.

• A significant non-recurring benefit from a fair value adjustment on the Basiq acquisition option liability was partially offset by increased consulting, legal, and integration costs.

• The company maintained a strong capital position, with a capital adequacy ratio of 22.3% and an upgraded AA- credit rating.

• A final fully franked dividend of 5.0 cents per share was declared, bringing the full-year dividend to 8.5 cents per share, a 13% increase year-over-year.

• The company is progressing towards a potential IPO by the end of 2024 to access deeper funding and support growth initiatives.

Financial highlights

• Net Operating Income increased 18% to $284.5m, with transaction volumes up 6% year-over-year.

• Operating expenses rose 19% to $241.9m, reflecting higher employment costs, consulting, legal, and integration expenses.

• Adjusted EBITDA grew 22% to $56.2m, and EPS increased 21% to 18.0 cents per share.

• Return on Equity improved to 10.2% from 8.8% last year.

• Regulatory capital ratio at 22.3%, well above minimum requirements.

Outlook and guidance

• Forecasts stable core business growth in FY2025, driven by transaction volume increases and new business onboarding.

• Focus on enhancing technology, operational resilience, and risk management, including CPS 230 compliance and fraud/scam capability.

• Full-year FY2025 dividend expected in the range of 9.0–11.0 cents per share, subject to board discretion.

• IPO process to recommence, targeting completion before end of 2024.