Ann: Business Update, page-15

Their net transaction margins are quite a bit stronger than expected. They look like they are on track to be $130m higher than last year in net transaction margin. I think it is impressive that APT have held the line on margins, and maintained the growth rate as well. I think I remember GS expecting this margin to shrink from 2.27 to 1.85% or so as an example. This margin difference would be about $50m. So if that keeps up it is going to be a profitable year for sure IMO. I reckon they will get about $35m PBT roughly more than previously expected, taking off $15m for margin of safety. So I reckon there could be a $30m pbt or so if I use GS numbers extremely roughly, amending that variable.

It seems to be a good position to be in, that Afterpay had the choice of going for growth or margin, and they have instead been able to choose both YTD. lol

I still hope they are optimising their cost per client acquisition and cost per transaction. If they do - the rest will look after itself IMO.

Somebody let me know if I am too optimistic.