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MC Payment reports operating profit but net loss due to goodwill write-off

The Edge Singapore
The Edge Singapore 8/14/2021 09:46 PM GMT+08  • 1 min read
MC Payment reports operating profit but net loss due to goodwill write-off
MC Payment reports operating profit of $0.66 million, but net loss of $29.4 million due to goodwill write off
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MC Payment reported a net loss of $29.4 million mainly due to one-time RTO expenses of $30 million, of which $26.4 million was a non-cash expense item relating to the write-off of goodwill for the reverse takeover of the company. Excluding the one-time RTO expenses and a one-time legal fee of $0.16m relating to the EGM on June 30, 2021, the adjusted net profit was $0.66 million

See also: MC Payment proposes name change to OxPay Financial

Gross profit rose 11% to S$2.8 million in 1H2021, despite a slight decrease in revenue, due to a better pricing strategy, as gross profit margin jumped by nearly 600 basis points to 47.7% in 1H2021. Administrative expenses increased by $4.2 million due mainly to the one-time RTO expense of $3.6 million, as well as higher legal fees of $0.1 million and expenses incurred due to a one-time legal fee of $0.16 million relating to the EGM on 30 June 2021. The group’s operating and free cash flow were positive for 1H2021.

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MC Payment has announced a name change to OxPay Financial, subject to shareholders’ approval in an EGM to be held on Sept 2, 2021.

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