Australia's Zip rises on robust annual forecast, first-half cash earnings

Zip Co

25/02/2025 02:00

Feb 25 (Reuters) - Shares of Zip Co  ZIP.AX  climbed
nearly 16% on Tuesday after the Australia-based digital
financial services firm said its first-half cash earnings more
than doubled, and released its annual earnings forecast, which
exceeded consensus expectations.
    The company's earnings before taxes, depreciation and
amortization (EBTDA) for the six-month period ended December 31
came in at A$67 million ($42.46 million), higher than A$30.8
million reported a year earlier.
    The growth was driven by higher total transaction volumes
and revenue, as well as improved debt arrears performance. 
    Zip's U.S. business saw a 40.3% increase in transaction
volumes during the first half, fuelled by a strong holiday
trading period and enhanced customer engagement. Meanwhile, the
company's ANZ business also returned to growth in the second
quarter.
    Zip said it expects to deliver cash EBTDA of at least A$147
million for fiscal 2025, nearly 2% ahead on Visible Alpha
consensus expectations.
    As of 0126 GMT, shares of the company posted their biggest
one-day percentage jump since January 2024, and were the top
performers in the ASX 200 benchmark index  .AXJO , which was
down 0.9%.
    
    ($1 = 1.5778 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Nichiket.Sunil@thomsonreuters.com;))