HomeChoice International has reported a 15% increase in revenue to R2bn for the six month to end-June, while operating profit rose 36% to R388m.
A key driver behind this increase is the group's fintech unit, Weaver Fintech, which contributed 95% of the operating profit.
Weaver Fintech saw a 31% rise in both revenue and operating profit, totaling R1.1bn and R275m, respectively. The fintech segment’s expansion is highlighted by a 76% increase in its customer base, now at 2.1-million.
The Buy Now, Pay Later (BNPL) product proved to be a growth catalyst, with Gross Merchant Value (GMV) skyrocketing by 174% to R1.5bn. Weaver’s MobiMoney credit-backed wallet also saw substantial user engagement, with disbursements growing by 29.4% to R1.1bn.
HomeChoice’s overall customer base grew by 51% to 2.5-million, with 89% of transactions now conducted through digital channels.
The shift aligns with the company’s digital-first strategy, which CEO Sean Wibberley credits for the enhanced scalability and efficiency of the business.
“Our digital-first approach continues to provide scalability and efficiency to our businesses and outstanding customer convenience,” Wibberley said on Tuesday.
HomeChoice’s retail division experienced a 2% rise in retail sales, reaching R600m. This improvement is attributed to a focus on quality credit books and cost management strategies despite a challenging market environment.
Executive chair Shirley Maltz expressed optimism about future growth prospects, emphasising the potential for sustained high earnings through Weaver Fintech’s expanding product range and ecosystem.
“With more than 2.1-million fintech customers, a compelling financial services offering, and 2,400 merchants in our digital ecosystem, Weaver Fintech is positioned for sustained high earnings growth. We will achieve this by expanding the product range and cross selling these products within the growing ecosystem. We are also pleased to see accelerated traction in the turnaround of the retail business,” Maltz said.
HomeChoice also reported a 50% increase in its fintech customer base, driven by strong performance in its Pay Just Now and FinChoice businesses. The Pay Just Now service, which allows customers to purchase goods and pay later, added 100,000 new customers monthly, leading to a significant rise in repeat purchases.
FinChoice, another key component of HomeChoice’s fintech portfolio, saw a 17% increase in disbursements and a 25% rise in gross premiums for its insurance products.
According to Maltz, the group’s credit application processing has reached approximately 7-million decisions, using advanced machine learning algorithms to enhance credit risk assessments.
Acceptance rates for new applications increased, reflecting improved credit performance and risk management. She said HomeChoice has also introduced advanced fraud detection technologies to bolster credit risk controls.
Despite increased data costs, HomeChoice maintains a balanced cost-to-revenue ratio, with strategic efforts focused on tightening credit scorecards and reducing credit limits to manage risk while driving growth.
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