BANXA Holdings Inc (TSX-V:BNXA) is a global Payments Service Provider (PSP) serving the digital asset/cryptocurrency industry. It does so by using its platform as a “bridge” between the fiat/cash/banking system and the digital asset/exchange system. The company is headquartered in Australia where it has pioneered easy to access, local payments platforms for retail investors to acquire cryptocurrencies. More recently it has expanded its infrastructure to the B2B market, partnering with the leading cryptocurrency exchanges, including OK Group, Binance, KuCoin and EDGE Wallet. It has also expanded to the UK, the European Union, USA and Canada. The company has reported H1 FY21 revenue of A$7.4m, up 124% on the prior period, on the back of an almost seven-fold increase in payments volumes. Gross profit for the half was up more than 200% in the previous corresponding period to $2.2m. Adjusted EBITDA was a loss of $0.28m for the period with Q2 FY21 delivering adjusted positive EBITDA of $0.096m. The result outperformed our forecasts on an annualised basis and has resulted in an upgrade to our FY21 and FY22 forecasts. This has lifted our base case DCF valuation to C$3.80/share (A$3.88/share) from C$3.47/share previously.
03 Mar 2021
Better than forecasts H1 performance, positive Q2 EBITDA
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Better than forecasts H1 performance, positive Q2 EBITDA
Banxa Holdings, Inc. (BNXA:TSX) | 0 0 0.0%
- Published:
03 Mar 2021 -
Author:
Finola Burke | John Burgess | Andrew Williams | Melinda Moore | Scott Maddock -
Pages:
6
BANXA Holdings Inc (TSX-V:BNXA) is a global Payments Service Provider (PSP) serving the digital asset/cryptocurrency industry. It does so by using its platform as a “bridge” between the fiat/cash/banking system and the digital asset/exchange system. The company is headquartered in Australia where it has pioneered easy to access, local payments platforms for retail investors to acquire cryptocurrencies. More recently it has expanded its infrastructure to the B2B market, partnering with the leading cryptocurrency exchanges, including OK Group, Binance, KuCoin and EDGE Wallet. It has also expanded to the UK, the European Union, USA and Canada. The company has reported H1 FY21 revenue of A$7.4m, up 124% on the prior period, on the back of an almost seven-fold increase in payments volumes. Gross profit for the half was up more than 200% in the previous corresponding period to $2.2m. Adjusted EBITDA was a loss of $0.28m for the period with Q2 FY21 delivering adjusted positive EBITDA of $0.096m. The result outperformed our forecasts on an annualised basis and has resulted in an upgrade to our FY21 and FY22 forecasts. This has lifted our base case DCF valuation to C$3.80/share (A$3.88/share) from C$3.47/share previously.