Payments outfit Novatti Group Limited has reported 13 per cent boost in revenue to $12.9 million for the September 2024 quarter. 

Cost efficiency was also much improved in the latest quarter (Q1 FY25), with expenses falling to $5.5m, down by 11 per cent, compared to the previous quarter. 

Commenting on its progress for FY25, the company asserted that the turnaround strategy, set in motion in Q1 FY24 and "progressively implemented" by Novatti’s new management team over the past year "is already delivering benefits" – notably a 26 per cent increase in quarterly revenue and a 29 per cent decrease in quarterly expenses.

In its Activities Report for the September 2025 quarter, the company restated its aim to lift gross margins in its core payments business in Australia and New Zealand from 44 per cent today to more than 70 per cent in FY27. 

The company listed "structural reform initiatives" for Q1 FY25 that included exiting non-core businesses and investments, such as the sale of Novatti’s interest in the International Bank of Australia – raising $2.87 million – and simplifying its business by ceasing wholesale Cross Border services, while retaining direct to business relationships.

In the September 2024 quarter Novatti claimed that it started to see the first benefits of recent investments in technologies. Efficiency gains, alongside the ongoing simplification and the consolidation of shared services, have enabled further cost reductions, with $2.8m in annualised expenses identified to be removed in Q2 FY25.

"Completion of this next phase will result in a total of $9.8m of annualised expenses removed from across Novatti during calendar year 2024, underpinning our drive to achieve positive operating cashflow," the company stated in its activities report.