MoneyHero Group’s second quarter result zoomed by 24% to US$20.7 million.

MoneyHero Group’s second quarter result zoomed by 24% to US$20.7 million.

SINGAPORE, September 20, 2024 –  MoneyHero Group (Nasdaq MNY), a market-leading personal finance and digital insurance aggregation and comparison platform in Greater Southeast Asia, on Friday, announced financial results for the quarter that ended June 30, 2024.

Rohith Murthy, Chief Executive Officer of MoneyHero Group, stated “I am pleased to report that MoneyHero Group delivered another strong quarter, with revenue increasing by 24% year-over-year to US$20.7 million. This performance underscores our position as the leading personal finance aggregator in the region. We have achieved significant market share gains, highlighted by a 68% year-over-year surge in revenues in Q2 2024 in Singapore, primarily driven by credit card and insurance product demand.”

“With 970,000 banking and insurance applications facilitated in the first half of 2024, MoneyHero Group’s leadership is evident, and we see substantial opportunities for continued growth in this fragmented industry,” Murthy said.

“Our strategic focus on operational efficiency is already delivering positive results, with Adjusted EBITDA losses expected to narrow next quarter. We still anticipate achieving Adjusted EBITDA profitability on a monthly basis within Q4 2024, supported by targeted actions to streamline operations, optimize marketing spend, and enhance overall efficiency. MoneyHero Group disciplined approach, which includes our recent headcount reduction and implementation of AI-driven processes, is creating significant operating leverage across the business,” he said.

“We are transitioning our focus from purely driving traffic growth to prioritizing monetizable traffic that leads to conversions and applications. This strategic shift has already resulted in a 50% increase in approved applications, highlighting our capability to convert higher-value traffic into measurable outcomes while optimizing growth,” Murthy said.

“We are also rolling out innovative new capabilities, including a redesigned mobile app, a new car insurance vertical, and enhanced UX/UI across our platforms. These initiatives are expected to boost customer engagement and drive higher-margin revenue streams. With a robust membership base of 6.5 million, we are strategically positioned to cross-sell and upsell, unlocking greater value from our existing user base,” he said.

Murthy pointed out the capital position remains robust, allowing this group to pursue strategic investments and explore M&A opportunities to further consolidate our leadership. The recent exit from Malaysia as an operator, while retaining a strategic stake, reflects our commitment to focusing on high-growth regions and forging value-maximizing partnerships.

“As we pivot toward driving Adjusted EBITDA improvements, our focus on efficiency and higher-margin products such as personal loans, insurance, and advertising revenue, will be critical drivers of profitability. While we have faced challenges in certain markets, we have taken corrective actions and anticipate a return to strong growth. We estimate that MoneyHero will achieve positive Adjusted EBITDA in the fourth quarter of 2024, positioning us to deliver sustainable, long-term value for our shareholders,” he said.

Hao Qian, Chief Financial Officer of MoneyHero Group, added, “In Q2 2024, MoneyHero’s strategic expansion generated solid growth in approved applications, which resulted in 24% year-over-year revenue growth, reaching over US$20.7 million.

“We’ve made strong market share gains, particularly in our core markets, as we continue to expand across Greater Southeast Asia. However, our investments in strategically expanding customer acquisition, brand building, technology re-platforming, and data infrastructure contributed to a loss of US$(12.2) million and an Adjusted EBITDA loss of US$(9.3) million for the quarter. During the second quarter, we remained committed to executing our growth strategy, with a goal to accelerate key verticals and further extend our market share leadership. The primary drivers behind the increase in our operating and Adjusted EBITDA losses include,” Qian said.

“We prioritized growth through increased investments in branding, customer acquisition, data and technology, aimed at capturing new customers and building infrastructure for future profitability,” Qian said.

In Q2, several providers in Taiwan and the Philippines paused new card acquisitions due to significant platform migrations, which temporarily impacted our financial performance. The MoneyHero Group expects acquisition volumes to normalize in Q3 as these migrations near completion. Additionally, the exit of a key provider from several of our markets had a notable effect on both revenue and profitability.

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“To offset this, we’ve invested in expanding other providers’ products and diversified into new verticals. We anticipate that the revenue and profitability impact from this provider’s exit will be largely mitigated by Q3 and Q4, with minimal effect anticipated moving forward,” Qian said.

EOM.