Purple Group’s share price surge as strong membership growth boosts profit

Purplse Group CEO Charles Savage says that after a strong turnaround in the first half, they faced a bright future. Picture: Supplied

Purplse Group CEO Charles Savage says that after a strong turnaround in the first half, they faced a bright future. Picture: Supplied

Published Apr 17, 2024


Purple Group’s share price shot up 23.33% yesterday following a “transformative” six months to February 29 that saw it turnaround to a solid profit, while further platform initiatives would build on a solid underpin.

CEO Charles Savage said the results heralded a return to profitability and their “innovation journey…as we venture into new horizons with the introduction of EasyTrader and the anticipated launch of EasySubscriptions and EasyRetire,” would continue unabated.

“These initiatives, along with our robust growth across all our value drivers, signal a bright future ahead,” he said.

New regional growth, while slow, was worth the time... and their work in the Philippines to deliver on an always-on, 24-hour global operations platform, and a cost-effective engineering capability, would provide “future growth opportunities that far exceed those of our past,” said Savage.

He said Easy App 3.0, set to launch in a phased rollout in July 2024, was his most anticipated product launch of the year, as he expected it would enhance user experience and drive strong viral growth loops that would bolster acquisition and conversion in coming years.

EasyTrader planned to release in August 2024, and was poised to revitalise GT247.com, with a platform for active traders. EasySubscriptions, launching in December 2024, would introduce tiered service offerings. EasyRetire, set for launch in 2025, would be dedicated to defining retirement planning and savings.

“While these results are just a half year mark for us, the momentum they signify — marked by three all-time records in the Easy Group for highest half-year revenue, highest quarterly revenue, and largest ever deposit month in February 2024 — are strong indicators of a robust recovery and bright prospects ahead,” he said.

The share price was trading 23.33% higher to 75 cents per share on the JSE yesterday afternoon. It closed XXX% higher at XXX.

Purple Group focuses on financial empowerment, with each product and platform building towards a financial ecosystem designed to educate and empower clients to make informed decisions. Existing platforms include EasyEquities, EasyProperties, EastAssetManagement, EasyCrypto, and GT247.c0m.

The group first launched its retail equity trading platform EasyEquities in October 2014. Despite the tough economy, Purple’s EasyEquities Group revenue increased 34.9% to R165.4 million in the six month period. Easy Group's operating expenses fell by 1% to R122.4m, and it generated a taxed profit of R11.8m compared to a loss of R16.5m in the comparative period, a 171.3% increase.

Client assets increased by 20.2% to R51.1 billion, while active client numbers increased 12.5% to 944 517. Easy Group’s registered clients was up by 21% to 2.17 million.

Purple Group’s attributable profit R10.9m, compared to a loss of R10.6m in the prior comparative period, representing an increase of 202.3%.

“Revenue growth has been notable across the board, highlighting the value of our services to both retail and institutional clients and all this against the backdrop of a challenging macroeconomic environment,” said Savage.

Group basic and headline earnings per share increased 192.9% to 78 cents per share, compared to a basic and headline loss per share of 84 cents in the prior comparative period.

“We are reshaping the financial landscape of our nation, fostering financial empowerment and literacy for all. This purpose has been the cornerstone of our journey, far transcending the mere creation of a platform,” said Savage.

“Our clear purpose from the outset - to democratise investing - has seen us push boundaries further than ever before,” he said.

The active client base continued to expand year after year. Both institutional and retail customer assets were growing strongly.

The inflow of cash remains robust against the headwinds of economic uncertainty, reinforcing the steadfastness of our clients’ investment journeys with us.

Leveraging their scale advantage, new products and services were being introduced with minimal marginal cost.