Zip Co Ltd (ASX:ZIP)
A$ 2.99 +0.040 (+1.36%) Market Cap: 3.81 Bil Enterprise Value: 5.95 Bil PE Ratio: 0 PB Ratio: 5.50 GF Score: 56/100
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Half Year 2025 Zip Co Ltd Earnings Call Transcript

Feb 24, 2025 / 11:00 PM GMT
Release Date Price: A$2.38 (-2.06%)

Key Points

Positve
  • Zip Co Ltd (ZIZTF) reported a record financial performance for the first half of FY25, with transaction volumes reaching $6.2 billion, up 24% year-on-year.
  • The US business delivered excellent results, with an 80% growth in cash earnings and a 40.3% increase in transaction volume.
  • Total income increased by nearly 20% to $514 million, with a revenue margin of 8.2% remaining within the target range.
  • The company achieved a cash EBTDA of $67 million, up 117% compared to the prior period, demonstrating significant operating leverage.
  • Zip Co Ltd (ZIZTF) maintained strong credit performance, with credit losses improving by 22 basis points to 1.6% of TTV.
Negative
  • The statutory net profit after tax was $23 million, lower than the previous year due to one-off gains in the prior period.
  • Cash operating costs increased by 10.1% year-on-year, reflecting higher investments in growth initiatives.
  • The company faces a long sales lead time for enterprise merchants, which can delay the realization of new merchant partnerships.
  • There is a potential risk of increased bad debts as the company pursues growth in both regions, especially with new product launches.
  • The competitive landscape in the US remains challenging, with other players like Afterpay expanding their presence.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ZIP.AX - Zip Co Ltd
Half Year 2025 Zip Co Ltd Earnings Call
Feb 24, 2025 / 11:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thanks operator, good morning and thank you for joining us for Zip's first half FY25 results. To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora nation and pay our respects to elders, past and present.

This conference call is also being webcast, and an archive will be available on this website.

I'm joined today by Zip's group CEO Cynthia Scott and Group CFO Gordon Bell, who will present today's results. We also have US CEO Joe Heck and ANZ CEO Peter Gray, who will join us for Q&A.

We will start this call with some prepared remarks and then open up to questions.

With that, I'll now hand over the call to our group CEO, Cynthia Scott.
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