Ann: MoneyMe closes Bond issuance - Supporting Growth, page-14

G'day everyone!!

Been watching MME for a while (whilst holding a substantial amount of WZR shares), and bought my first MME parcel at $1.35 on Friday.

Hopefully this is a pretty good entry point - and will buy more if the MME SP stays at or just above these levels with continued good news.

That might be wishful thinking though

Great discussion about the relative market caps of HMY, WZR and MME.

I am still learning about the MME business, but it appears to have these similarities with WZR:

Obviously they are both online focussed lenders.
Growing loan originations very quickly.
Both recently expanded into auto finance. It sounds like Autopay may just be the better product here - with approvals within the hour.
Both looking to expand overseas - with WZR recently doing a deal that gives them exposure to the European online finance markets, and MME apparently "eyeing off" a USA expansion.

It look like MME's revenues are now starting to crank up quite quickly - with revenues around $11.9m (July - Sept 2020 quarter), then $12m (Oct - Dec 2020), then $15m (Jan - March 2021), and they are looking for revenue of $19m + in this current quarter (April - June 2021).

So could be on target for revenue growth of around 50% (second half versus first half) - and with a yearly "run rate" of around $76m in revenue by 30 June 2021.

However, in the recent half year report, MME's revenues ($23.92m) were only up by around 12.3% from the previous year - whereas WZR's revenues for the same period ($9.99m) had increased by 354%.

So WZR's revenues grew significantly faster in the first 6 months of this year, and their cash receipts are also now really cranking along.

For example, WZR had cash receipts of $1.15m for the quarter ending 31 March 2020 - with cash receipts of $6.84m for quarter ending 31 March 2021 (up 494% year on year).

Obviously one of the big differences is in the profitability of the two companies - for the half year MME showed a NPAT of $1.29m, whereas WZR showed a loss of around $9.3m.

The fact that they are profitable is obviously a huge tick for the MME business.

Be really interesting to see how these two businesses continue to grow & evolve, but IMO they do both look undervalued at the moment.