Latitude Group Holdings Ltd (ASX:LFS)
A$ 1.15 -0.005 (-0.43%) Market Cap: 1.20 Bil Enterprise Value: 6.85 Bil PE Ratio: 0 PB Ratio: 0.97 GF Score: 37/100
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Half Year 2024 Latitude Group Holdings Ltd Earnings Call Transcript

Aug 23, 2024 / 12:00AM GMT
Release Date Price: A$1.15 (-1.71%)

Key Points

Positve
  • Latitude Group Holdings Ltd (ASX:LFS) reported a solid start to the 2024 financial year with a 14% increase in spending and lending volume, reaching $4.1 billion.
  • The company's money division achieved a record high in originations, exceeding $1 billion.
  • Credit card application volumes have returned to 2021 levels, indicating a recovery in demand for pay division products.
  • Operating income for the first half increased by 2% year on year, reaching $342 million.
  • Net interest margins improved by 31 basis points to 10.1%, reflecting successful margin management actions.
Negative
  • Despite the positive financial performance, the dividend remains on hold as the company continues to invest in growth.
  • Delinquencies are expected to revert back to historical norms, indicating potential future credit risk.
  • The company's gearing ratio is slightly above the target range, which may impact future dividend decisions.
  • Cost-of-living pressures are affecting customers, which could impact future spending and repayment behaviors.
  • The company is still in a transitional phase, with significant work ahead to fully realize its strategic goals.
Mitch Hawley
Latitude Group Holdings Ltd - Head of Investor relations

Thanks, Ashley, and good morning, and welcome to the Latitude results briefing for the half year ending June 30, 2024. I'm Mitchell Hawley, Head of IR, and I'm joined here today by our MD and CEO, Bob Belan; and CFO, Paul Varro.

In the spirit of reconciliation, Latitude acknowledges the traditional custodians of country throughout Australia and their connections to land, sea and community. We pay our respects to the Elders' past and present and extend that respect to all Aboriginal and Torres Strait Islander people today.

I'll now hand over to Bob to begin the presentation.

Bob Belan
Latitude Group Holdings Ltd - Chief Executive Officer, Managing Director, Executive Director

Thanks, Mitch. Good morning, everyone. Welcome and thanks for joining us on today's first half results briefing call. The past 12 months, here Latitude can be characterized as a period of renewal, rebounds and very importantly, a refocus on the core fundamentals that have driven our company's

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