The ASX-listed Afterpay Ltd has reported a half-year statutory loss before tax of A$35.8 million for the six months to December 2019, a jump from the $21.5 million pre-tax loss in the prior comparable period. Earnings before interest, tax, depreciation and amortisation (excluding significant items) were reported as $6.8 million for the half year ended 31 December 2019, a decline of 51 per cent from the $13.9 million EBITDA for the prior comparable period. In a presentation to investors, and released to the ASX, the company said its results in the half year ended 31 December 2019 reflected increases in employment, marketing, and other operating expenses as a result of expanded operations. Income for the group was primarily generated through its buy now pay later operations, which have launched into the US and UK markets. The AfterPay group now has 7.3 million active customers globally, averaging over 16,800 new customers per day in H1 FY20. This rate increased to over 22,900 per day in November and December 2019 as it accelerated into the US and UK markets. This has pushed total income to $220.3 million for the half year, up from $112.3 million for the prior comparable period.  Afterpay's cost of sales consequently increased to $55.4 million, up by 114 per cent on pcp as the growth in underlying sales across all regions started to flow through.Likewise, employment expenses were $36.0 million while operating expenses amounted to $80.6 million - increasing from $20.9 million and $25.4 million, respectively from the prior comparable period.Merchant margins remained stable at 3.8 per cent (3.7 per cent in H1 FY19), while gross loss as a percentage of underlying sales was materially lower at 1.0 per cent (reduced from 1.2 per cent in H1 FY19) despite strong growth in newer markets, which initially have a higher loss rate.Net transaction loss improved by 24 per cent from 0.6 per cent (H1 FY19) to 0.5 per cent (H1 FY20) with the improvement in gross loss more than offsetting a lower contribution from late fees - a revenue stream that Afterpay has said is declining as part of a "deliberate approach to managing late fees downwards".There is, however, more work on its brush with regulators: AUSTRAC is considering the report by independent auditor Neil Jeans (as announced on 25 November 2019). Afterpay is continuing to work on recommendations made in the report.Included within general and administrative expenses is the recognition of a $1.5 million provision "for estimated settlement costs related to an ongoing regulatory matter", and a line item for "AUSTRAC-related costs of $3.0 million".Among balance sheet changes this half, Afterpay's debt increased to $417 million at 31 December from $50 million at 30 June 2019 as the group drew down on its warehouse receivables facilities to fund underlying sales growth.During the half year ended 31 December 2019 and into the early part of 2020, Afterpay:•    raised $200 million in equity capital from US based technology investor Coatue Management;•    extended the $200 million Australian receivables warehouse facility with