Australia's Zip hits 1-year high on upbeat results, forecast

Zip Co

22/01/2024 01:07

(Adds analyst comments, updates share moves)
    ** Shares of Zip Co  ZIP.AX  rise as much as 17.3% to
A$0.745, their highest since Jan. 24, 2023 
    ** Financial services co posts 26.1% rise in qtrly revenue
    ** Co delivers positive group cash EBTDA for 2Q24, driven by
strong seasonal performance in U.S. business 
    ** Co sees group cash EBTDA for 1H24 between A$29.0 mln
($19.11 mln) and A$33.0 mln
    ** Co reported 1H23 EBTDA loss of A$33.2 mln 
    ** UBS says co posted strong 2Q result relative to its
estimates 
    ** "We note net bad debts have also continued to trend
downwards, which is positive given environment of continuing
uncertainty around consumer household sentiment" - UBS 
    ** Stock flat this year as of last close, after rising 24.5%
in 2023
    
($1 = 1.5175 Australian dollars)

 (Reporting by John Biju in Bengaluru)
 ((John.Biju@thomsonreuters.com;))