CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 87.41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Scan to Download iOS&Android APP

Afterpay loss widens as it seeks growth in new markets

By Debabrata Das

04:52, 25 August 2021

Share this article

Subscribe to Weekly Highlights

The major market events for the week ahead right in your inbox. Subscribe
Afterpay logo on a smartphone with a background of a web page
Photo: Shutterstock

Australian buy now, pay later (BNPL) service provider Afterpay’s loss for the year ended June 2021 widened as it spent more on marketing while expanding to new regions. The expansion, though, helped the company nearly double its underlying sales.

On Wednesday, Afterpay reported a net transaction loss of AUD132.6m (USD96.06m) as compared to AUD42.8m in the previous year. Statutory net loss increased to AUD159.4m as compared to AUD22.9m in the previous year.

Afterpay’s marketing expense also soared to AUD168.8m in 2021 as compared to AUD70.5m in the previous year as it entered new markets. The entry into new markets led to its underlying sales rising to AUD21.1bn in 2021 as compared to AUD11.1bn in the previous year.

Afterpay expands footprint

The marketing expenses have helped raise Afterpay’s footprint in North America and it has now become the company’s largest market, even bigger than its home country Australia. Afterpay had recently accepted a takeover offer from Twitter founder Jack Dorsey's Square. 

Natural Gas

5.82 Price
-6.480% 1D Chg, %
Long position overnight fee 0.0437%
Short position overnight fee -0.0705%
Overnight fee time 22:00 (UTC)
Spread 0.005

BTC/USD

17,252.40 Price
+0.610% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

XRP/USD

0.39 Price
+0.540% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00313

Oil - Crude

82.47 Price
+2.600% 1D Chg, %
Long position overnight fee -0.0023%
Short position overnight fee -0.0114%
Overnight fee time 22:00 (UTC)
Spread 0.03

“The geographic profile of the Afterpay business continues to evolve, with all regions performing strongly during the period notwithstanding that global retail remains at various points of reopening due to the effects of the pandemic,” according to a company statement.

Afterpay’s statement also showed that active customers increased by 16.2 million during 2021, an increase of 63% over the previous year. “Approximately 25,000 new customers joined the platform globally per day during 2021,” the company added.

Shares down 

Following the announcement, Afterpay’s shares fell 0.83% from the previous close on the Australian Stock Exchange during afternoon trading in Sydney at AUD133.98.

Trade AFTERPAY T FPO - APTau CFD

Read more: Square to acquire Afterpay in largest-ever Australian buyout

Rate this article

Share this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Latest Forex news

Still looking for a broker you can trust?

Join the 475.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading