• $26.2m in H1 revenue - up 22.3% YoY
• 29% decrease in H1 FY25 opex YoY
• 97% YoY improvement in H1 EBITDA to ($0.36m)

Novatti Group Limited (ASX:NOV), a leading fintech enabling businesses to pay and be paid, has released its Half Year Report (H1 FY25) and Appendix 4D. The results highlight that the positive results from Novatti's turnaround strategy are now clear and embedded. Revenue increased 22.3% YoY in H1 FY25 to $26.2m, despite a focus on reducing costs. The core Payments AU/NZ business saw a 38% increase in gross transaction value YoY (excluding cross border payments). The review across H1 FY25 to exit low profitability services, solutions and customers helped contribute to Q2 FY25 Payments AU/NZ gross margin increasing to 49%, an increase of 15% YoY, on the way to a three-year 70% target. Novatti's substantial cost out program, now fully implemented, saw opex in H1 FY25 fall 29% YoY. This, combined with the embedding of the turnaround strategy, resulted in a 97% improvement YoY in H1 EBITDA, to ($0.36m). Novatti remains focused on achieving positive operating cashflow in H2 FY25, while also positioning the business for growth, particularly in the Payments AU/NZ segment. The company has made significant structural changes and embedded its turnaround across H1 FY25, and remains positive about the prospects of the business and its growth moving forward.

Novatti expects to come within $30k of positive monthly operating cashflow within January and to achieve positive operating cashflow for the half-year ending June 2025.

Novatti considers that the Payments AU/NZ business will provide the core growth platform moving forward, and will use the remainder of FY25 to execute on its existing pipeline for this business. The company remains incredibly positive about the prospects of the business and its growth moving forward.