Equity Analysis /
Australia

AU : MoneyMe - Acquisition completes

    Steven Sassine
    Steven Sassine

    Research Associate

    CGS-CIMB
    25 March 2022
    Published by

    With the recent announcement of the successful acquisition completion of SocietyOne (Soc1) by MoneyMe (MME), we update our numbers to include the recent result and take the opportunity to review longer term growth assumptions for the combined business. With the majority of key metrics known at the last quarterly update, there was little surprise in MME’s 1H22 result. Revenue of A$m was up ~100% on pcp with a closing gross loan book of A$590m (+252% on pcp). Continued strength in Autopay originations was a key highlight in our view (now 26% of the book). We lower our FY22F/FY23F EBITDA estimates factoring in the first half result as well as higher impairment expenses (accelerated loan growth leading to higher upfront provisioning). Longer term, we remove some conservatism from our top line growth assumptions post the acquisition settling. Our target price is lowered to A$2.35 (from A$2.60) factoring in the above changes. Add maintained.