Wednesday 24th February 2021
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Harmoney Corp Limited, Australasia’s largest online direct personal lender, announces first half financial year 2021 (1H21) results for the six months ended 31 December 2020.
During the period, Harmoney delivered pro forma revenue of NZ$42m and Cash Net Profit After Tax of NZ$1.2m. Total loan originations delivered were NZ$194m for the period, a decrease of 28% on 1H20, reflecting the deliberate tightening of credit underwriting in a COVID-19 environment. Despite the macro economic uncertainty, the average loan book size was NZ$477m, down only 2% on 1H20. Customer receivables ended 1H21 at NZ$468m, increasing to $NZ481m as at 23 February 2021 with strong demand continuing into the current period.
Loan origination rebounded strongly during the Q2 FY21, with 47% quarter-on-quarter growth, driven by new customer acquisition, particularly in Australia, with the resumption of marketing expenditure following Harmoney’s IPO and as consumer confidence returns. Commenting on the result, CEO and Managing Director, David Stevens, said:
“Harmoney continues to build on the growth momentum happening in Australia through focusing on conversion of accounts while consolidating our growth to date in New Zealand. IPO proceeds were only received in late November 2020 so the impact of the investment is now starting to be realised and will continue into the current half. We are pleased with our progress in 1H21, with stable revenues, cash profit, and the return of loan origination momentum in what is a tale of two quarters.”
Outlook for Growth
Harmoney’s proprietary loan management system, StellareTM, is unrivalled in its competency and has been architected in a way that allows the Company to adapt its core technology to support new initiatives – such as LibraTM – with modest incremental investment. Launched on 10 February 2021, LibraTM 1.7, is Harmoney’s new generation, real-time behavioural credit decisioning process and pricing engine. Built specifically for the Australian market, LibraTM 1.7 benefits from years of consumer data that has achieved billions in loan applications across Australia and New Zealand, where Harmoney has operated since inception. This is the first release in a series of five planned releases.
In Australia, LibraTM 1.7 has generated ~100% growth in new loan originations in just 2 weeks since its release. Turbocharging this momentum with the 3R business model means Australia has the potential to be a A$1bn origination per annum business, taking Harmoney’s customer scale to the next level.
Commenting on the outlook for growth, CEO David Stevens added:
“Harmoney is a trusted brand and the largest 100% direct online personal loan lender in the Australasian region. The business is well positioned for more growth with a strong balance sheet, efficient operating systems, and a highly experienced team of data scientists and technologists. We have over NZ$290m in undrawn funding limits and will continue to attract and convert more consumers through our competitive risk-based pricing. We are confident we have the right strategies underway to deliver long term shareholder value while ensuring we continue our vision of creating a frictionless finance experience for consumers.”
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