OFX Group Limited (OFX) Earnings Call Transcript & Summary

Thank you, Ashley. Thank you, everyone, for joining the call. As Ashley mentioned, I'm joined by Selena Verth, our CFO; and Matt Gregorowski, who leads our Investor Relations program with Citadel-MAGNUS. Selena and I will take you through the pages, and then there'll be some time for Q&A. We'll cover the full year result, what it is and what drove it as well as our outlook for FY '21. Let's move to Slide 4 in the pack. We delivered a strong financial result, revenue up 6.6%, underlying expenses up 5% and underlying EBITDA up 6.4% against the backdrop of very mixed trading conditions over the full year. Whilst the first half and 3Q were relatively quiet, we saw exceptionally high levels of market volatility in February and March related to COVID-19. This helped drive the EBITDA result of $38.2 million, coming in at the top end of the range we provided in mid-March. Net operating income was up 5.4% at $125.2 million, driven by a record fourth quarter growth of 16.3%. The final dividend will be maintained at $0.0235 per share. The investment we have made in our infrastructure and systems meant we were able to take full advantage of market volatility, remaining open, available and trading well. Overall revenue was up 6.6% over the year with a strong second half result up 13.4%. Our consumer segment grew revenue of 5.8% as we saw a substantial number of lapsed clients reactivate at high-value ATVs. We continue to see good key financial and operating metrics, transactions up 6.2%, transactions per active client up 8.8% and stable net operating income margins ex IPS at 56 basis points. We continue to improve our marketing and the client onboarding experience, which drove our cost per registration down 11.3%, and our cost per new dealing client down by 7.4%. Our return on invested capital is very healthy at 31.8%, and this is against a backdrop of more than doubling CapEx from $5.1 million in FY '18 to $10.3 million this year. The CapEx was all from the cash flows we generated from operating activities, which in FY '20 was $30.5 million. We finished the year in a strong financial position with over $60 million net cash held for own use. We delivered on our key growth drivers with North America and our corporate segment continuing to perform well. North American revenue grew at over 24% with U.S. being even stronger at 30%. Our corporate business globally grew 10.8%, and our online sellers business grew at over 21%. We've previously highlighted that growing through partnerships is a key strategic priority, and the progress we've made is excellent. We previously announced our partnership with Link Australia, and the technology implementation is proceeding to plan so that we are already accepting registrations as well as being able to process payments. Aside from Link Australia, there is a strong pipeline of prospects for FY '21 also. The extreme volatility in February and March brought out the best from OFX. By the second week in March, we had the entire workforce working from home. We managed over 1.8x the income in core volumes and supported 17% growth in transactions, while system uptime was flawless. That is why clients remain so loyal to OFX. We deliver when they need it most. In summary, in FY '20, we demonstrated we have an inherently strong business, good cash flows, high ROIC, capital-light, no debt, a global platform and exceptionally strong service delivery. Even better, we continue to make it more valuable through investing in healthy, sustainable growth programs and geographic expansion. Moving to Slide 5. As I said, market conditions fluctuated greatly in FY '20. Global spot markets were down again in the first half, driven by political uncertainty and trade wars, which affected business and consumer confidence substantially. In the second half, they became very volatile, particularly in the fourth quarter, with the onset of COVID-19. However, as we have previously committed, what's important is that we outperform especially in a soft market and that our business model remains resilient. We've demonstrated that in these results. The table on the left shows that we continued to grow net operating income in third quarter and fourth quarter versus prior years. In fourth quarter, we saw very high volatility with the VIX peaking at a 10-year high over 82, whilst we saw the AUD reach an 18-year low of around $0.56 versus the U.S. dollar. The table on the right is the one we're especially proud of. It shows that whilst volatility comes and goes, we've consistently grown the key metrics, transactions and transactions per active client to deliver growth in net operating income. But better than that, at the same time, we've grown EBITDA and EBITDA margin as well as cash. The last period the business saw an EBITDA margin above 30% was in FY '16. All this is from essentially flat active clients, showing that our pivot to higher clients, being disciplined about expenses and generating stronger returns through operating leverage are all contributing to building a more valuable company. The Board and management team believe we can, and we will grow the business regardless of the economic backdrop and build a strong and sustainable company over time. Moving to Slide 6. We saw an extremely volatile finish to FY '20 and fourth quarter and wanted to share some of the highlights of what we learned. Firstly, we've shared previously that we have pivoted our focus to growing the corporate segment, and we remain committed to this. However, that should not be read as abandoning the consumer segment. In fact, we've made it plain regularly that we have a very valuable consumer segment. Our clients, active and inactive, generally ask us to support higher-value transactions and are attracted to us as a combination of great prices and our extraordinary human-plus-digital service support. They are generally less active than clients who send smaller sums more regularly but are more economically valuable. We have said for some time we are focusing on reactivating inactive consumer clients as well as winning new clients because we can see how inactive clients remain loyal and reactivate when it suits them. In March, we saw both active and inactive clients give us a lot more of their business. However, reactivating consumer clients generated an increase of 132% in revenue versus the year-to-date average through February compared to an increase of 62% from already active clients. That increase is exceptional in both cases, but this client-reactivation activity confirms how valuable our consumer business is. Secondly, our pivot to corporate has always been predicated on the fact that they are more active at higher transaction values and remain active through quiet and busy times, providing a good recurring revenue base. In March, they were also more active with revenue from existing corporates up 38% versus the year-to-date average through February. Whilst that is less growth in consumer, equally, they remain active during quieter periods, like the first half, where we only saw 19 days of volatility versus 30 in first half '19 but delivered a 9.7% growth in corporate revenue and grew corporate active clients 4%. Thirdly, we've been investing in geographic diversification, partly because we have the infrastructure and can tap into new markets to grow but also to create less dependency on particular currencies and flows. The data points highlight this. AUD-USD flows are important to us, but given our growth in North America, we have a better, more balanced set of flows, and this has been further improved by the pivot to corporate. With the strength in U.S. dollar versus Aussie dollar, it's not surprising to see a big growth in the U.S. dollar to Aussie dollar corridor, especially in consumer where it grew 126% in the month. But what is perhaps surprising, but incredibly important is that we actually grew flows from AUD to USD by 34% in March in corporate. That reversed flow improves our abilities and net flows and thereby reduces costs and passes on to clients by way of reduced prices while reducing our operational risk. It also provides a natural currency hedge. Finally, for the last 3 years in particular, we have grown our investment in reliable, scalable systems and the client experience. This served us and, more importantly, our clients exceptionally well in March. We delivered an excellent service with no interruptions and access to the OFX team 24/7. We also continue to support all currencies with no transaction limits. And these are a couple of examples of Trustpilot reviews from March. "Supporting clients with extraordinary human-plus-digital service is absolutely essential to our business and never more so than during this time. Having strong digital and strong human service delivery is very hard to replicate." Moving to Slide 7. We continue to grow engagement in our active client base. Whilst the number of active clients overall is slightly down, reflecting our pivot to grow corporate clients, transactions per active client are up 8.8%, and transactions are up 6.2%. This transaction growth means we are winning the types of higher-value clients that we are targeting. It reflects deeper and more engaging customer relationship management programs, more pricing tests and the strengthening of our human-plus-digital service delivery. ATVs returned to more historic levels in the second half, which meant that we saw record turnover of $24.7 billion for the full year. Moving to Slide 8. We've maintained a strong recurring revenue profile with 76% of our revenue coming from existing clients. This is up from 72% in FY '18 and reflects the loyalty of our clients and the way in which corporate clients, in particular, tend to grow their revenue in years 2 and 3 and remain active thereafter. Moving to Slide 9. Our global footprint continues to be a source of competitive advantage. As previously mentioned, our focus on growing our corporate portfolio is also helping drive growth in turnover, transactions and revenue in the U.K. and Australia/New Zealand. The second half was very strong. We saw great turnarounds in these markets, driven by the combination of client wins, much stronger commercial execution and good consumer growth in fourth quarter. It is especially pleasing to see the continuing momentum in North America. We fished the year very strongly, growing transactions over 22%, turnover over 20% and revenue over 24%. Both Canada and the U.S. performed well. In Asia, we've taken a deliberate pivot following an in-depth review of the business in the market. The review looked at the type of clients we were supporting versus the projects we could attract, and we found that there are a deep pool of alternative prospects that better fit our global target audience. The second half started to deliver some positive lead indicators, especially in fourth quarter with a return to growth in revenue. Now let me hand over to Selena to walk us through the financials in more detail.

Thank you, Skander. Moving to Slide 11. We have delivered a healthy result with an underlying EBITDA of $38.2 million, up 6.4% on the prior year. This was underpinned by some strong volatility in March, which is reflected in the comparison between the second half and the first half. First half '20 EBITDA was $16.5 million, and the second half '20 EBITDA was $21.7 million. We saw good growth across our key metrics. Fee and trading income was up 6.6% with North America, Europe and ANZ all delivering good growth. This was supported by ability to scale pricing tests with 300,000 clients receiving offers. When we saw large volatility in March, we managed our FX risk well and protected our client revenue through exceptional treasury management. NOI was up 5.4%, and we continue to optimize our partner commission structures as well as always looking to drive bank fee efficiencies. We work with each of our 14 banking counterparties to ensure we drive at cost processing efficiencies as well as speed for our clients. Within transaction growth, consumer is up 0.4%, and corporate is up 12.8%, both showing strong growth in the second half. ATVs are down 1.9% to 22,100, but this is a reflection of the 2 different halves. ATVs in the first half were 21,100. However, we saw these improve in the second half of '20 to 23,200 as both market volumes and volatility increased. IPS revenue was down -- was $4.7 million, down 24% with an EBITDA of $2.3 million. As we said in the first half, while there is a decline in flows from our largest partners wealth management business, we revised the revenue structure, which removed the profit share component. This resulted in a higher EBITDA margin, which is accretive to the portfolio, and our partnerships with Macquarie and ING are being reset for growth. IPS remains a strong, strategic priority and will begin to benefit from transaction flow from the Link Australia agreement in fiscal year '21 and beyond. This is now live and accepting new registrations, while our overall enterprise pipeline is healthy and growing. Taxes continue to be low at 17.9%. This is due to higher offshore revenue tax at lower rates, the difference between tax and accounting for both forward revenue recognition and leases. When you remove the impact of deferred income tax benefit of $1.1 million, the current tax rate is 22.3%. We are happy with the statutory net after tax of $20.3 million, up 19% on the last year because of the corporate action costs. Underlying net profit after-tax growth was 4.5%. This is especially pleasing given we have increased our investment in the company with depreciation and amortization up 18% or $1.6 million over fiscal year '19. This is the first time we have grown statutory net profit after tax since fiscal year '16. The group has declared an unfranked final dividend of $0.0235 per share. This is consistent with the dividend paid for the first half but below historical dividend guidance. Considering current economic uncertainty, this is a precautionary measure to preserve the company's healthy cash position while still providing shareholders with attractive returns. On Slide 12, you'll see that we have delivered positive annual operating leverage on an underlying EBITDA basis. Net operating income up 5.4% grew faster than underlying operating expenses up 5%, resulting in underlying EBITDA growth of 6.4%. Employee expenses were $53.4 million, up 6.2% on the prior year, and we continue to invest in our revenue-generating FTEs, which are up 8%. Promotional expenses were $13.6 million, down 22.4% on the prior year. As we discussed at the half year results, we have increased our efficiency of promotional expenses with the cost per registration down 11.3% and the cost per new dealing client down 7.4%. You will also note the first half '20 promotional expenses were $7.1 million and included a large portion of our OFX branding. This campaign will be used globally, and indeed, we're back in market with it here in Australia in April and May. The second half '20 promotional expenses of $6.5 million, which are down on the first half of '20,we increased our search spend as we saw markets move and volatility pick up, and this was offset by the timing of branding spend. As we guided this time last year, we expected the technology expenses to increase as we utilize more software-as-a-service for our technology stack. Technology expenses were $6.3 million, up 22.2%. Nevertheless, our unit cost in technology, such as server hosting, continued to decline. Whilst we support more scale, we deliver better uptime and better security. Occupancy expenses have been restated in line with the new lease accounting standard, AASB16. We've completed 4 restatements, so each period is on a comparable basis. Please refer to note 1 in our financial statements where we've outlined the adjustments made. The impact on occupancy expenses is a reduction of $3.7 million, which is now recognized as depreciation and interest expense. Bad and doubtful debts of $3.3 million are up significantly on the prior year. This was driven by 4 clients generating 27% of the losses. 77% of the bad and doubtful debts are generated in North America and are fraud-related. We learned from each fraud experience and continue to invest in our detection capability with both face and voice biometrics implemented. These are working exceptionally well, and we've seen an increase in detection rates in March at 99.3%. Further, every month in the second half was well within our fraud loss expectations despite the record growth. These bad and doubtful debts are also credit losses. Pleasingly, they are a much smaller portion of the overall losses. During times of extreme volatility in March, we worked closely with our clients to add forward positions that were out of the money and made the necessary margin calls. The clients were very supportive. In the end, there was only 1 client that could not cover the margin call where we needed to make a provision. Turning to Slide 13. We continue to invest in our client experience and reliable scalable systems. For the year, we invested $10.3 million in CapEx. This is up from $9 million in fiscal year '19 but below expectations due to improved efficiencies. As you may remember, we focused on the consumer client experience in fiscal year '19. We were excited to have made good progress on the corporate client experience in fiscal year '20 with new online forms that have reduced onboarding time for our clients by 14% in the U.S. and 33% in the U.K. On the partnership side, we went live in March with registrations for Link after some excellent product, technology and marketing delivery between us and Link Australia. We continue to invest in our online seller segment through our Global Currency Account, and Skander will take you through that later in the presentation, including our plans for fiscal year '21. Enhancements to our banking integrations have realized a 52% increase in straight-through processing for our Global Currency Account, which means much lower cost for us and much less friction for both our clients and our banking partners. Our pricing engine continues to be scaled with the increasing number of tests delivering insights and business value. We have delivered 300,000 offers in fiscal year '20, increasing this sevenfold in the second half. Our investments in reliable, scalable systems have delivered cost and process efficiencies with improved USD functionality and a very contemporary and efficient transaction-monitoring system. As Skander mentioned, our cloud-first infrastructure and technology stack enabled our teams globally to transition to 100% working remotely at short notice while maintaining service levels through peak volatility. Turning to Slide 14. We have a strong balance sheet, no debt and generate good cash flows. This has always been valuable but never more so as we navigate these uncertain times. Our net cash position, which includes cash held for own use and deposits due from financial institutions, is $61 million, up $2.5 million in the prior year. Note, we held $35.2 million of this balance as collateral for our counterparty trading lines at the end of March. After collateral and bank guarantees held for property leases, we have $24.5 million of net available cash. Our collateral position of $35.2 million is higher than prior periods but a reflection of the market volatility as at the 31st of March. You will also notice our derivative financial asset and derivative financial liability positions are substantially higher than prior periods but, on a net basis, only $2.4 million, which is $300,000 lower than fiscal year '19. This reflects the active management of our treasury team, reducing risk while delivering great value for our clients. We are particularly proud of the teams during March volatility to manage both our credit positions and foreign exchange exposure. Our regional teams implemented daily credit reviews, ensuring we margin called our clients, if required, and cash is being collected as positions moved. We have a strong credit process, and these played out during this period as our clients have the cash available to make the margin calls on the forward positions. Feedback from clients has been that it was very well managed. Our treasury team, who worked 24 hours, 5 days a week, were able to trade the book efficiently and effectively with our 8 counterparties and flexed our trading patterns to ensure we balance risks with collateral requirements. You may remember, we had quite high tax installments in the first half of '20 of $7.9 million. As we guided, this did not repeat in the second half of '20. We collected tax refunds resulting in an overall net tax payment consistent with the first half of '20, of $7.9 million. We have declared an unfranked final dividend of $0.0235 per share, which is consistent with the first half '20 dividend. Due to our tax refunds and low tax rate, the dividend will be unfranked. Going forward, we will pass on once franking credits are available to shareholders. I will now hand back to Skander to take us through the fiscal year '21 outlook.

Thank you, Selena for that excellent coverage of our financial performance. Moving to Slide 16. Our strategy has served us well in the last 2 years. We've maintained our focus on investing consistently in our foundational enablers; reliable, scalable systems; risk management; and our people so that we are strong and secure. We've complemented that with selective investments in our growth drivers, our client experience, geographic expansion and partnerships to help us grow faster. This combination has created a more valuable and sustainable business. We've also highlighted in the past that we see our online sellers business supporting marketplace sellers through our Global Currency Account as world class. Further, the opportunity to grow our enterprise partnerships is very significant, underpinned by the announcement of our first new enterprise partnership in 5 years with Link Australia. In FY '21, we are going to accelerate our investments in online sellers and enterprise to grow our sustainable revenues and further enhance the value of OFX. Firstly, what is the online seller segment? And why will we accelerate our investment in it? Online sellers, our business is engaging in e-commerce by selling their goods and services through online marketplaces. The first reason to accelerate our investment is there is substantial headroom to grow. Global cross-border e-commerce is a huge market with around $3.3 trillion annual turnover according to Frost & Sullivan and Accenture estimates. Within that, we currently compete in a small subsection of online sellers selling via marketplaces like Amazon, which alone is estimated at $66 billion annual turnover. Last year, we supported a turnover of just over $1.6 billion, a small fraction of this market. The second reason is that foreign exchange margins are attractive. It may surprise many to learn that foreign exchange margins are anywhere between 150 and 400 basis points for the large players, creating an opportunity for us, given we charge substantially less. The third reason to accelerate our investment is that we have the right platform, built over several years, to lead. At a group level, we have built a good infrastructure in the last 15 years, banking relationships, licenses, service delivery, a broad global footprint and good technology. But in the last 3 years, we've built connections into the major marketplaces, deployed sales teams, improved our digital platform, built reporting and formed partnerships in the ecosystem. We have tested our value proposition. So these 3 reasons, headroom to grow, margin available and our infrastructure, are why now is the time to scale our efforts. We will put in place a dedicated global team, deploy better technology and invest in marketing partnerships. Our second opportunity is to grow faster in the enterprise segment. Major enterprise partnerships are a very sound way to grow for 2 reasons. Firstly, they are relatively resilient through market ups and downs as our enterprise partners already have strong brands, client bases and infrastructure. Secondly, when managed well, they make attractive returns. Thirdly, improved technology and stronger value propositions mean that prospective enterprise clients are looking, more than ever, for lower cost and better risk options than major banks. We have demonstrated that we can manage enterprise clients well, as well as their clients exceptionally well, and that improves their value proposition. We have excellent risk management and invested in technology to support global partners. To accelerate our progress in this segment, we have invested in adding strong commercial talent in every region who are building a good pipeline of opportunities. In fiscal year '21 and beyond, we are targeting more announcements similar to that of Link Australia, long-term partnerships that generate substantial benefits for both partners at attractive returns. For fiscal year '21, as you'll see on Slide 17, we will retain our rigorous focus on the 3 foundational enablers and the 3 growth drivers that underpin our strategy. Firstly, our foundational enablers. Our investment and progress in delivering reliable, scalable systems will continue. We will focus on further improving our payments infrastructure, especially our U.S. dollar delivery, to both reduce cost and improve speed. We have also agreed a completely fresh and contemporary data strategy that will improve our ability to use, store and interpret data across our business from operations to service delivery, treasury, marketing and finance. Our risk management investments continue, and this year, we expect to create some operating leverage from our investment in new fraud-management programs across transaction monitoring and onboarding at scale. We're also implementing new client case management software that will simplify our client management reporting and commercial programs. Our people agenda continues. And in addition to growing our regional teams and our salespeople, we are working hard to ensure their support structures continue to get refined, better sales operations, simple and stronger incentive programs and a better global operating model for all teams to be more effective. Our growth investments remain absolutely essential, regardless of the market conditions. Our client experience investments will continue to focus on better and easier corporate onboarding, rolling out a customer relationship management program we have deployed successfully in consumer to our corporate clients and enhancing the banking technology required to support our online sellers who use our Global Currency Account. With our geographic focus, we continue to scale our investment in North America whilst driving corporate growth in the U.K. and Australia and New Zealand. In Asia, we will complete our pivot in FY '21 to drive growth, especially in corporate. Finally, our focus on partnerships will be to deliver the Link Australia goals, enhance our API program and grow online seller partnerships. We've made excellent progress in winning new partners such as Payability, and we will continue to pull through these kinds of opportunities. So in closing, on Slide 18, we're focused on strong execution during these uncertain times, maintaining sound risk management, good cost discipline and healthy cash generation. We also see opportunities to grow. We expect GDP to shrink worldwide with pressure on certain industries, which is likely to affect client trading activity, and that has already resulted in subdued activity in April with revenue down 11.5% versus the prior corresponding period. However, new revenue growth was encouraging in corporate, up 297% versus prior corresponding period. Our corporate clients are well distributed across different industries, meaning we are well diversified and, as such, have no substantial exposure to any one industry. In consumer, we saw revenue pull back in April, but we saw registrations up 26%, which would suggest prospects in consumer expect more volatile times and are making arrangements to prepare for that. However, the degree of economic uncertainty means predicting revenue is impossible. Whilst we see the opportunity to win through accelerating investments in online sellers and enterprise, given the uncertain timing of revenue that will come from these and the broader need to maintain flexibility to grow, it doesn't make sense to target positive operating leverage for this year. We will continue to review the dividend payout throughout the year in light of trading and the company's cash position and balances against providing shareholders with attractive returns. Our core financial commitments remain aligned with pursuing sustainable growth, disciplined investment where there is competitive differentiation and markets are supportive while maintaining stable net operating income margins ex IPS. This discipline will be complemented by our unwavering commitment to build a more valuable business. We will continue to focus on North America and corporate growth where we have built strong track records. We will scale our Link Australia partnership and win new partnerships while accelerating our online sellers business. We remain, despite tough trading, confident in the model, excited by the future and resolute in delivering our commitments. Thank you for listening. And now let me hand back to our facilitator, Ashley, to handle Q&A.

[Operator Instructions] Your first question comes from Bob Chen with JPMorgan.

Just a couple of questions for me. I guess in terms of that sort of enterprise pipeline that you guys have been talking about, can you talk a little bit about the competitive dynamics in winning some of those clients, where are they typically sort of migrating from and why they would choose to partner with OFX?

Sure, Bob. Well, the first thing to say is that in the last 12 months, we've put in place a head of enterprise sales and salespeople in every region, which we didn't have 12 months ago. What we've also done is to refine what our value proposition is and what our target prospect looks like. And to put it bluntly, what we're seeing out in the market is that larger enterprises that are, in some way, facilitating a lot of cross-border payments, and Link is an example, are increasingly focused on 2 things. One is the risk management, and the major banks, as I said, all around the world have really had to take a bit of a hit on AML/KYC obligations. And that is creating a lot of nervousness in boardrooms and at executive level around being inadvertently caught in an AML breach. So that conversation could start with as simple as our bank doesn't wish to make the investment for us as a partner. And so we have to make that investment, and we can come in there and say, "Our value proposition as it is with Link is that we will take all of that off your hands." The second thing is that clearly, what's happening is, especially post-COVID, enterprises are looking at every line of costs. And they're focusing on what are all the peripheral costs that we currently have in our organization to support these cross-border payments. And often, it's a kind of small department somewhere. There's a lot of exception processing. There are banking arrangements. There's a lot of things that come with it that just all add up. And so they're saying, "Look, now would be a good time if we can take that cost out of our company." Naturally, To have a ticket to play, you've got to be able to support these clients globally. So you've got to have the licenses in all these jurisdictions. They're very understandably concerned about what the service could look like. And we know when we're going to compete with other players, and we compete hard on this, is that the ability to pick up the phone for their clients is very, very important. Obviously, our treasury management, our banking infrastructure is another factor of the service that they get. And what we're seeing is in every region now, we're working on some really good opportunities that these heads of enterprise sales as well as the regional presidents have been personally working on. Obviously, as I've always said in the past, Bob, I can't commit to a commercial outcome in a time period because these things can move slowly or quickly. But I'm confident in our pipeline and the fact that I've made this announcement within the context of our outlook should send a signal that we're confident that we'll make further progress this year.

All right. Great. And then just touching on sort of that outlook into FY '21. I think it's one of the first times that you're not targeting that positive operating bridge. It sounds like it's more sort of around conservatism around the economic conditions rather than any sort of ramp-up in costs or expenses that you're sort of expecting over the next couple of years.

Yes. And I'll say, Bob, it's a combination, right? So we want to maintain and continue to invest where there is competitive differentiation and opportunity. We do know that -- we've seen April is a little bit subdued. But we do want to continue to invest where there is that different than an opportunity. We are really excited about online sellers and enterprise, and that's really the reason that we're saying this year that we're not targeting positive operating leverage. Now we will continue to manage the expenses, maintaining the flexibility to grow and make sure we don't spend money where it's not needed, but we want to make sure that we keep the business growing in this environment, and there will be opportunities.

Okay. Great. And just touching on that April revenue being a little bit subdued. Do you get any sense that maybe some of the ramp-up in revenue in sort of March was a bit of pulling forward of demand?

Yes. There was certainly a bit of that. I mean what's interesting is that if you actually break it down, transactions were pretty flat, and in fact, corporate was up. So what you're seeing is ATVs dropped from a consumer and corporate perspective. And so the activity was there. It's just at a lesser level in absolute ticket size. And clearly, that data point around registrations is really interesting for us because what we saw in March was a big increase, 83%. Every month, we get people who convert from a registration to a new dealing client. And we were looking at the March data to try and get our heads around that. In March, we saw an 83% increase in consumers that converted from a registration to an NDC where the registration was at least 6 months old. So what you're seeing is -- particularly for our target client is a register in many cases, and they're making a plan, and they're waiting on an exchange rate in the consumer sense for that to hit. And you could see a lot of that in those data points that I was sharing. And therefore, whilst we saw some pullback, particularly in consumer, in April, we know that fundamentally, there's still a lot of clients out there that have registered and are continuing to register with us. And even indeed, when I mentioned that new corporate revenue figure, that's highly encouraging. It obviously is a smaller proportion of our total revenue, so you don't see that benefit on the total line yet. But to grow it that much says that -- suggests that we're winning share because we know the market didn't grow that much. And it's also very encouraging, given all the investments we've made in commercial excellence, adding salespeople, refining our target, corporate value proposition. So it's just as Selena said, it's very hard to forecast how that will all play out. And whilst the top line number came down, we know that the lead indicators remain pretty encouraging.

[Operator Instructions] There are no further questions at this time. I'll now hand back to Mr. Malcolm for closing remarks.

Well, thanks, Ashley, and thanks, everyone, for dialing in. Look forward to engaging going forward. Thanks for your time.