![]() In Australia, the lightly regulated sector has also come under pressure from consumer advocates, who are concerned that consumers are racking up unaffordable debts and want the product made subject to the same laws that govern loans. The next biggest loser was Fatfish Group, which operates in Singapore and plummeted 84%.Īmong providers that operate in Australia, Laybuy Group experienced the biggest share price fall, slumping 79%. IOUpay, which operates in Malaysia, suffered the biggest fall from its peak of the dozen stocks tracked by Halverson, cratering by 96%. He said big player Afterpay’s share price now tracked that of US group Square, which has agreed to buy the Australian company. Zip shares have fallen from their peak by 63% while Openpay shares have dropped 78%, according to figures compiled by Halverson. Openpay will need to raise more money by either borrowing more or issuing new shares, auditor PwC said. In August, Openpay’s auditors said there was a material uncertainty the company could continue as a going concern after an ambitious push into the US and UK resulted in a surge in bad debts. “Most BNPL apps’ 2021 reports were bad, as sales growth declined, credit losses increased and cash burn increased, with a number seeming questionable in cashflow terms.” “The sector lost over $1.05bn in 2021 which has concerned many investors,” he said. However, Halverson said a $653m loss announced by big player Zip in August, a dramatic increase from its $20m loss last year, “surprised and even shocked many”.
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