Afterpay owner Block eyeing Australia as part of global growth

Ahuja said Block would provide more details on its global ambitions at an Investor Day on May 18. During the company’s previous quarterly results in February, it also said Australia offered a “significant opportunity to leverage the flag that Afterpay has already planted so well, for Cash Application.” »

Block’s intentions for Australia are relevant to local banks, with which it already competes through its merchant business, and in particular Westpac, which has partnered to provide Afterpay’s banking app.

Block’s popular “Cash App” offers peer-to-peer payments and enables trading in stocks and cryptocurrencies.Credit:Bloomberg

Shares of Block, which trade as a CHESS depository interest on the ASX, were down 2.8% late in the morning after a turbulent session on Wall Street in which tech stocks fell.

The company’s March quarter results showed earnings before interest, taxes, depreciation and amortization of $195 million ($275 million), up slightly from the December quarter.

Block also provided a first look at Afterpay’s contribution, saying BNPL pumped $92 million into gross profit in February and March.

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Block co-founder Jack Dorsey, who also co-founded Twitter, said the Afterpay integration had created distractions for Block, but he was optimistic about the merger’s long-term growth opportunities.

“We’re really excited about Afterpay and where it’s going,” Dorsey said. “We are still very early in this integration. It’s the biggest thing our company has ever done, and obviously…it’s certainly a lot of fun. But we managed to pull through.“

“We see a lot of our competitors taking advantage of the fact that we have this integration, but focusing on the fundamentals and why we acquired this business in the first place, which is to connect these two ecosystems.

RBC Capital Markets analyst Daniel Perlin said Block’s EBITDA was ahead of market expectations, while Cash App and Merchant gross profit exceeded its forecast.

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