Razer Fintech's total payment volume doubled to $1.8b in H1

It was boosted by online shopping and higher digital entertainment consumption.

Razer Fintech generated $1.8b in total payment volume (TPV) for H1, a 114.3% YoY increase compared to last year, an announcement revealed.

This was driven by the onboarding of new merchants and surges in online shopping as well as digital entertainment consumption activities as a result of the COVID-19 pandemic.

The firm announced in January that it has submitted a digital bank license bid to the Monetary Authority of Singapore (MAS), with results to be announced in the second half of the year.

The company also said that it is exploring applying for digital bank licenses in other jurisdictions.

Overall, gaming firm Razer reported a record-high revenue of $447.5m for H1, a 25.3% jump compared to last year’s revenue, thanks to strong growth across its portfolio particularly in its systems and services business, an announcement revealed.

The Singapore, Hong Kong and USA-headquartered firm also reported a gross profit margin of 22%, resulting from an increase in contribution from its services business offset by an increase in freight costs.

“The global ‘stay-at-home’ situation has boosted user engagement with gaming and esports to record levels. With our gamer and youth-centric ecosystem of hardware, software and services, Razer is well-positioned to capture the opportunities of these secular trends,” said Min-Liang Tan, Co-Founder and CEO of Razer.

He added that their business fundamentals, strong operating cost discipline, and strong cash position of over $500m puts them in a good position even during times of challenging global economic conditions.

Cashflow from operating activities also turned positive to $66m, with operating profit growth and strong working capital management leading to record cash conversion cycles from 51 days in the first half of 2019 to 72 days in the first half of 2020.

Meanwhile, Razer’s cash balance is reportedly over $500m with no debt.

Revenue from its hardware business expanded 26% YoY to $382.7m due to growth of mouse, keyboard, and headset sales. Stay-at-home situation also boosted sales of live-streaming portfolio such as the Kiyo camera and Seiren streaming microphone.

Its software business saw user accounts rise by 42.8% YoY to approximately 100 million with monthly active users surging 45%, the company added.

Razer’s services business also recorded a 79.3% revenue growth to $64m, or 30% of the company’s gross profits.

In the payments side, Razer Gold more than doubled its total payment volume with a 125.9% YoY growth, on the back of more users and 600,000 new channel touch points in North Africa and the Middle East.