Government stimulus measures hurt cash converters lending business, online retail grows

Retailer and payday lender Cash Converters has seen an increase in online demand over the past six months, with online sales rising 39% to $ 5.3 million.

Overall, however, the company’s revenue fell 31 percent to $ 98.4 million, and EBITDA fell 19 percent to $ 24.6 million.

“The performance of our underlying business model has been extremely impressive given the substantial impact of Covid-19 throughout the first half of fiscal 2021,” said Cash Converters Managing Director Sam Budiselik.

“Every business unit that has shrunk in response to the stimulus provided by the government over the past 12 months has started the path to recovery. The closure of stores in response to the various closures, while affecting normal operating income, has resulted in an increase in online retail sales. “

According to the company, she received no payment from JobKeeper, although the economic support programs offered to workers, businesses and the wider community had a noticeable impact on its business – with less demand for credit. felt due to Australians drawing money out of their retirement pensions.

Looking ahead, however, the company said it is well positioned to take advantage of its extensive store and online network for the remainder of fiscal 2021.

“A strong pipeline of potential store acquisition and development opportunities, supported by a strong balance sheet and cash flow, provides the company with a clear track to grow in a measured and disciplined manner,” said the company in a press release to shareholders.

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