Ann: Trading Update, page-26

Thanks those figures are so poor, I could not believe it. Its not even a competitor to worry about based on that article.

Klarna Australia suffered a 71 per cent slide in merchant and consumer commission revenue to only $3.1 million in 2021.

In 2020, it generated $10.8 million of income from commissions.

One of the most worrying features of Klarna’s business performance in Australia is that the massive revenue slide occurred in a year that the marketing and advertising budget more than doubled to $27 million.

An equally worrying signpost of the company’s troubled performance was the blowout in credit loss charges from $169,271 in 2020 to $8.5 million.

This means that credit loss expenses are running at almost three times top-line revenue.

Moreover, total credit loss expenses in 2021 equated to about 56 per cent of the $15.1 million worth of receivables reported on the Australian balance sheet.