BUILD NOW, PROFIT LATER: Afterpay doubles sales and revenue, posts $79m loss, raises $1.25bn

BNPL market leader Afterpay (ASX:APT) posted a loss of $79.2 million in the second half of 2020, despite doubling revenue and sales, as well as its net transaction margin.

Some analysts were expecting (perhaps hoping?) for a maiden half year profit, but the $79.2m loss after tax came from a net loss on potential liabilities of $64.8 million associated with the valuation of its ClearPay UK venture.

The Melbourne-based global fintech’s shares are in a trading half after it also announced a $1.25 billion capital raise via a convertible notes issuance. It plans to increase its stake in Afterpay US from 80% to 93%.

The acquisition will cost $373 million, taking a 35% slice from the holding of US advisor Matrix, valued the subsidiary at $10.6 billion.

The half-yearly results to December 31, 2020 reveal Afterpay now generates a majority of its transactions offshore.

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