International payments company OFX is shifting the focus of its business to corporate clients, as it seeks a more stable customer base with higher transaction volumes.
The company released its September 2019 half result yesterday, reporting a net profit of A$8.3 million - down 7.7 per cent from the previous corresponding period. Turnover of $11.5 billion was down 5 per cent and net operating income of $59.5 million was down 0.5 per cent.
A key metric for the company - the number of active clients - fell 3 per cent to 154,000 from the same period last year. This follows a 3.3 per cent fall in the year to March.
The number of transactions rose 5.2 per cent to 547,900 and the number of transactions per active client rose 9.3 per cent to seven transactions. There was a 9.3 per cent decline in average transaction value.
Earlier this year, the company reported that new entrants in the international payments market had made conditions tough, with many of the new players loss leading to win business.
In yesterday's report, it said corporate transaction volumes were growing strongly.
Good news for the company was that it won a significant corporate account. In September, it signed an exclusive arrangement to provide international payments services to the share registry operator Link Market Services.
OFX will process dividends and other corporate payments to offshore investors who hold investments in listed Australian companies that use Link as their register. The contract is for five years and will start in March next year.