Ann: FXL - Full Year 2020 Trading Update, page-120

Mark my words:
- H2 FY20 BNPL growth will be 50%-100% IMO
- That means transactions of $450M+ for H2
- Working backwards that means $416M in H1

BNPL is a rapidly growing segment in FXL and these transaction $ are 3 to 4 times that of OPY based on its latest quarterly figures.

How are we valued at < 2 times OPY with:
1. Profitable in BNPL (yes at least $15M NPAT)
2. 3 to 4 times bigger (in terms of transaction $)
3. Growing at ~50% YoY and ~75% HoH (vs >100% for OPY). Growth is not that bad considering it is off a higher base.
4. Net losses are 4.1% (vs slightly <4% for OPY)
5. Profitable in Cards and Commercial Leasing (yes at least $35M NPAT)
6. Provision of $31M for COVID-19 losses that can be released at any time to buffer FY21 result
7. More than 25 times more merchants
8. Lower addressable market (missing the UK)
9. More financial products (5 vs 1)

As I've said, we should be valued at 20 times normalised NPAT or at least $1.2B.