OzSale parent lifts online revenue 10 per cent
Presenting preliminary results to the London Stock Exchange yesterday, MySale Group, the parent company of OzSale and NzSale among other global e-commerce brands, reported a 10 per cent increase in online revenue to $238.7 million and a six per cent increase in group revenue to $268.4 million in FY17.
Underlying EBITDA increased 59 per cent to $8.7 million, with gross profit lifting 14 per cent to $76 million. Underlying basic earnings per share increased 500 per cent to 2.5 cents.
MySale Group CEO Carl Jackson said he was very pleased with the group’s improved financial performance during the year.
“Sustained focus on our strategic goals has delivered yet another year of growing revenue and, more importantly, increasing profitability,” he said.
MySale Group’s underlying profit before tax rose 226 per cent to $3.3 million.
The company grew its active customer base 11 per cent to 900,000 in FY17.
Factoring in Identity Direct, which the company acquired at the end of the financial year, its active customer base is now 1 million.
Meanwhile, the company maintained an average order value of $87 and robust average revenue per active customer of $292, with the average customer making over three purchases.
Mobile activity represented 59 per cent of orders in the year, and returns remained at low at only five per cent.
After investing heavily in technology in the financial year, including doubling the tech team and replatforming, Jackson said the decision has already begun to pay off.
“Investment into our proprietary technology has accelerated and this year saw the launch of a brand new platform which will support all the group’s activities, including marketplace, in the future.
“This enhanced, data-driven, platform transforms our opportunities with brands and customers. We have a fully customisable, integrated proposition for brands to seamlessly support all their needs.
“We have even greater data insights to our customers’ needs and now they have access to our ‘Endless Aisle’ with an even greater choice of products at compelling discounted prices,” he said.
Endless Aisle combines the company’s increasingly long tail of inventory, which is now over 300,000 SKUs, with a new, single live view of its global inventory linked to all websites.
MySale Group also launched Ourpay in the financial year, a proprietary ‘buy-now, pay-later’ payment solution along the lines of Afterpay and zipPay.
“This further enhances our value proposition and initial experience suggests it is popular with our customers,” Jackson said, adding that there is potential to strategically leverage Ourpay as a standalone product in future.
“We shall shortly launch a subscription-delivery model for customers which will be fully integrated to the Ourpay platform,” he added.
Jackson said the company has had a good start to the current financial, with revenue growth accelerating and underlying profitability growing strongly.
Noting that the company’s peak trading period is still ahead, he said he expects underlying EBITDA for the year to at least be in line with the upper end of market expectations.
MySale Group is a UK-based company, which operates a portfolio of flash sale sites, including OzSale and BuyInvite in Australia, NzSale in New Zealand, SingSale in Singapore, MySale in Australia, New Zealand, Malaysia, Thailand, the Philippines, the UK and Hong Kong, and Cocosa in the UK, Australia and New Zealand.
The company specialises in offering end-of-season discount fashion products from well-known European brands at steep discounts.