Wisr’s focus on high-quality loans yields revenue jump and EBITDA profitability

Consumer lending firm Wisr (ASX: WZR) has increased revenue and delivered earnings before interest, taxation, depreciation and amortisation (EBITDA) profitability for the six months to end December.

The company reported an 11% jump in revenue to $48.1 million – up from $43.2m in the previous corresponding period – and EBITDA of $200,000 compared to a previous loss of $900,000.

Chief executive officer Andrew Goodwin attributed the financial achievements to moderated loan volume settings, portfolio and run rate net interest margin growth of 11 basis points and 104 basis points respectively, along with prudent cost management.

The moderations saw loan originations total just $103m for the half-year (66% less than the previous period’s $302m) and contributed to total loan originations of $1.7 billion at end December.

As a result, Wisr’s loan book also took a hit, decreasing by 8% from $916m to $847m.

“Our focus on prime customers has ensured the quality of our portfolio remains strong and stable over time, with the average loan book credit score maintained at 781,” Mr Goodwin said.

“At the same time, we were able to deliver a run rate yield for December 2023 of 13.43%, which is a 189 basis point increase on the previous corresponding period.”

Mobile app enhancements

Ongoing enhancements to user experiences on the Wisr mobile app delivered $11.3m in additional loan repayments and an 86% increase in monthly usage statistics for Wisr loan customers.

Customers who engaged with the Wisr platform were, on average, 13% further ahead on their repayments compared to non-users.

In January, Wisr won the 2024 WeMoney Best Mobile Experience award for its loan app.

Continued improvements

Mr Goodwin said the company recognised the value of continued improvements to enhance the app.

“Wisr continues to re-imagine the consumer financial journey,” he said.

“Work is well underway to deliver various initiatives, which have included the Wisr app’s one-time payment feature supporting the facilitation of both late payments by early-arrears customers and additional payments by proactive customers on performing loans.”

“Approximately $11.3m in additional payments have been made with this feature to date.”

He said the company intends to restart loan volume growth in the second half of the year, subject to market conditions and balance sheet strength.