humm Group’s Revenue Hits $336M, Net Profit Swings Positive in H1 2025

Strong Financial Turnaround

humm Group Limited (ASX: HUM) has delivered a notable financial recovery in its half-year results for the period ended 31 December 2024. The company reported a net profit after tax attributable to shareholders of $27.3 million, a significant improvement from the $6 million loss recorded in the same period last year. This turnaround underscores the group’s successful navigation through a challenging economic environment and reflects operational improvements across its consumer finance portfolio.

Revenue from ordinary activities rose 12% to $336 million, indicating solid top-line growth. This increase suggests that humm Group’s core business activities, including its point-of-sale and consumer lending products, have gained traction despite broader market headwinds.

Dividend Increase Signals Confidence

In line with its improved profitability, humm Group declared an interim dividend of 1.25 cents per share, fully franked at 30%, payable on 2 April 2025. This represents a 67% increase from the 0.75 cent interim dividend paid in the previous corresponding period. The company’s commitment to returning value to shareholders is further emphasized by the continuation of its Dividend Reinvestment Plan (DRP), with the last date for DRP elections set for 4 March 2025.

While the net tangible assets per security decreased slightly to 84 cents from 88 cents a year earlier, this metric remains robust, reflecting a stable asset base supporting the company’s ongoing operations and growth initiatives.

Outlook and Market Implications

humm Group’s half-year results mark a pivotal moment after a period of losses, suggesting that strategic adjustments and market conditions are aligning favorably. Investors will be watching closely to see if this momentum can be sustained into the full financial year, especially as consumer finance markets remain competitive and sensitive to interest rate fluctuations.

The company’s ability to increase dividends while maintaining a strong balance sheet may enhance investor confidence, potentially supporting the share price. However, the absence of detailed commentary on the drivers behind the profit improvement leaves some questions about the durability of this performance.