MoneyHero slashes Q2 loss to US$12.2 million on higher revenue

NASDAQ-LISTED MoneyHero reported a net loss of US$12.2 million for the second quarter ended Jun 30, narrowing from a loss of US$68.6 million in the year-ago period.

This translated to a loss per share of US$0.30 in the latest quarter for the group, which made its debut on Nasdaq in October 2023.

In a statement on Friday (Sep 20), chief financial officer Hao Qian attributed the improved performance to “investments in strategically expanding customer acquisition, brand building, technology re-platforming and data infrastructure”.

The group’s revenue for the second quarter went up 24 per cent on year to US$20.7 million, from US$16.7 million in the previous year.

The personal finance platform, which aggregates and compares digital insurance packages and runs Seedly and SingSaver in Singapore, attributed this to “solid growth in approved applications”.

The company’s revenue from Singapore surged 68 per cent to US$9 million from US$5.4 million. This was about 43.6 per cent of the group’s total revenue, “primarily driven by credit card and insurance product demand”.

Hong Kong was the second largest contributor to revenue, recording a 19 per cent increase to US$7.3 million from US$6.1 million.

In terms of source, online financial comparison platforms’ revenue climbed 26 per cent to US$17.8 million from US$14.1 million, contributing around 85.9 per cent to overall revenue. 

MoneyHero’s B2B business, Creatory, contributed the remaining 14.1 per cent, with revenue increasing 13 per cent to US$2.9 million from US$2.6 million.

For the second quarter, the group’s adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) loss widened to US$9.3 million from US$0.6 million in the previous year. The exit of a key provider from several of the group’s markets “had a notable effect on both revenue and profitability”, noted Hao. He expects this impact to be “largely mitigated by Q3 and Q4”.

Looking ahead, the group anticipates its third-quarter adjusted Ebitda loss to narrow and range between US$5 million and US$6 million.

“We still anticipate achieving adjusted Ebitda profitability on a monthly basis within Q4, supported by targeted actions to streamline operations, optimise marketing spend and enhance overall efficiency,” said chief executive officer Rohith Murthy.

Hao added that a comprehensive review of the group’s organisation structure had been initiated, beginning with the recent reorganisation announcement. This is expected to be completed by the end of Q3.

The Business Times reported in July that it had learnt that the group laid off 80 employees in Singapore to cut costs.

In August, MoneyHero made a non-binding offer of US$8 million to acquire its competitor, MoneySmart, which rejected the unsolicited offer. 

Rohith said that the group’s “capital position remains robust”, enabling it to pursue strategic investments and explore mergers and acquisitions (M&A) opportunities to further consolidate its leadership.