Afterpay (ASX:APT) records big loss despite income up 78%

Buy now, pay later giant Afterpay (ASX:APT) increased its total income for the year ending 30 Jun 2021, up 78 per cent from the prior year.

Despite double digit income, the BNPL provider reported a loss after tax of $159.4 million, compared to $22.9 million in FY20.

The increase in loss after tax was primarily driven by loss on financial liabilities of $96.8 million and share-based payment expenses of $59 million. 

Afterpay delivered earnings before interest, taxes, depreciation and amortisation (EBITDA) of $38.7 million, down 13 per cent from the prior year. Lower EBITDA was driven by increased investment in employment, marketing and operating expenses. 

Afterpay declared no final dividend for the year. 

Earlier this month, US payment platform Square entered a $39 billion deal with Afterpay. Completion is expected to occur in the first quarter of FY22. 

Shares in Afterpay (ASX:APT) are trading 0.8 per cent lower at $134.
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