Afterpay’s deteriorating results have reignited debate about the profitability of its buy now, pay later business model amid a surge in write-offs and late fees that dragged its losses to $345 million.
Fintech giant Block, formerly Square, acquired Afterpay for $39 billion last year. It released details of Afterpay’s earnings to December 31 in New York on Monday night Australian time, revealing that its costs had blown out by 65 per cent and its bad debts were up 70 per cent.
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Ayesha de Kretser is a senior reporter with The Australian Financial Review covering the aviation and tourism sectors. She has previously reported on banking, mining and commodity markets. Connect with Ayesha on Twitter. Email Ayesha at ayesha.dekretser@afr.com.au
Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
