ASX-listed financial technology Novelty September quarter sales rose to $10.5 million, a 98% year-over-year increase.
Novatti’s cash balance reached $14.5 million at the end of the quarter, with another $12.8 million expected in the near term.
These figures highlight the continuation of Novatti’s long-term growth trend and strong balance sheet.
Novelty the transition from development to monetization is now in full swing, particularly with strong growth in acquisitions, issuance and cross-border business. For example, Novatti’s acquiring business now serves more than 800 merchants.
Novelty Managing director Peter Cook said: “This shift also brings two other notable benefits. First, we can shift our focus to delivering positive cash flow, with cash utilization down another 10% compared to the previous quarter. Second, we can now use our ecosystem to quickly and efficiently commercialize new products and services. This is emphasized by the development of our Australian dollar-backed AUDD stablecoin to launch on November 1st.
“Broader in the payments sector, the value of fintech-based solutions is becoming evident. For example, we recently saw Westpac confirm its interest in acquiring Tyro, while ANZ also considered acquiring accounting platform MYOB. This interest underlines the significant value of Novatti having its own market acquisition business and the rationale for our strategic stake and strong partnership with Reckon Limited.
“Novatti continues to maintain a strong balance sheet, ending the September quarter with $14.5 million in cash and another $12.8 million expected in November through a special dividend from Reckon.
“These funds allow Novatti to continue to implement its growth strategy at a time when the larger players are clearly realizing the enormous potential of digital payments,” Cook said.
Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of Novatti Group Limited.