Zip Co Limited (ASX:ZIP) Announces 1H FY25 Results
Financial Performance
Zip Co Limited reported a 117.1% increase in cash EBITDA to $67.0 million for the six months ended 31 December 2024. Total transaction value (TTV) rose by 23.9% to $6.2 billion, and total income increased by 19.8% to $514.0 million. Revenue margin slightly decreased to 8.2%, while transactions grew by 18.4% to 45.7 million.
Operational Highlights
The company’s active customers increased by 1.5% to 6.3 million, and the number of merchants on Zip’s platform grew by 7.6% to 81,900. Net bad debts decreased to approximately 1.6% of TTV. The US business contributed 70% of TTV, driven by exceptional holiday trading which included the single largest trading day and month in Zip’s history.
Executive Comments
Zip Group CEO and Managing Director, Cynthia Scott said, “Zip delivered record cash earnings of $67.0m, an increase of 117.1% with cash net transaction margin expanding to 3.8%. The record financial outcomes achieved this half have been driven by outstanding US growth and disciplined execution of our strategy, with a focus on delivering enhanced customer experiences. We strengthened our balance sheet to support future growth and, consistent with our focus on cost discipline, continued to deliver significant operating leverage.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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