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Harmoney Corp Limited (NZX: HMY) HMY achieves cash NPAT profitability in 1HFY22

Wednesday 19th January 2022

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Harmoney Corp Limited (ASX/NZX: HMY ; “Harmoney” or “the Company”) is pleased to provide an update on its performance for the half year ended 31 December 2021 (1H FY22).

Key 1HFY22 highlights:

• Group proforma loan book reaches $557 million, up 19% on pcp

• Achieved profitability on proforma Cash NPAT demonstrating superior economics of Harmoney’s 100% consumer-direct business model

• Australian new customer originations grow to A$71.4 million, up 452% on pcp and up 53% on the prior half

• Australian receivables book grows to A$185 million, up 83% on pcp and up 37% on the prior half

• Key lead indicators of increased account acquisition, new loan originations and net lending margin set to drive increases in receivables and revenue growth in current and future financial years as existing customers return for future needs with minimal additional customer acquisition cost

• High quality receivables book with 90+ days arrears at 44 bps, down from 58bps pcp

• Australian new originations have surpassed NZ new originations, proving the success of a 100% consumer-direct model in the larger Australian market

Commenting on a record half year, David Stevens, Harmoney’s CEO & Managing Director said: “Harmoney continues to deliver on its growth strategy with an outstanding half year. Harmoney Australia’s loan book grew by 83%.

“Our loan book, is just over half a billion dollars, and the business is already Cash NPAT profitable on a proforma basis which demonstrates the power of a 100% consumer-direct business model. The Company’s 100% consumer-direct model and innovative Stellare lending platform, which uses data from over $8 billion in assessed lending, coupled with its high levels of automation creates operational leverage which drives profitability as our income grows significantly faster than our cost base.”

“Our team, composed largely of data scientists and engineers, continually impress with their drive to deliver on our purpose of helping more Aussies and Kiwis achieve their life goals through financial products that are friendly, fair and simple to use. Harmoney’s consumer-direct marketing technology is world class and consistently generates over 10,000 new customer accounts per month across Australia and New Zealand. This consistent high level of new customer demand enables our team to be solely focused on developing lending and product enhancements that will broaden our ability to provide financial products to more Aussies and Kiwis with no additional customer acquisition cost.”


• Group pro-forma loan book of at least $600 million (20%+ growth on FY21)

• Group pro-forma revenue of at least $92 million (16%+ growth on FY21)

• Net lending margin of at least 7% (0.2%+ growth on FY21)

• Indirect opex to income ratio of <20% (2%+ reduction on FY21)

• Transition to warehouse funding expected to be ~90% complete by 30 June 2022, (81% complete at 31 December 21)

The above market guidance assumes COVID-19 restrictions in Australia and New Zealand do not have a material impact on originations or customer repayments.

Please see the link below for details

HMY achieves cash NPAT profitability in 1HFY22

Source: Harmoney Corp Limited

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