Zip Co shares lift as annual loss narrows

The news: Buy now, pay later player Zip Co has posted record transaction volumes and revenues for the year, cut annual losses by nearly two-thirds and boosted its share price in the process.

The numbers: Zip lifted its revenue by 16.1% for the year ending June 30 to $693.2 million, while transaction volume jumped 7% to $8.9 billion. Gross cash profits were up 20.4% to $250.6 million. The company still recorded a $414 million statutory net loss, but this figure was down 63% from $1.1 billion the year before. Zip shares were trading 4.5% higher at around 11.30am AEST.

The context: Zip has recently restructured its global operations to focus on profitability in key ANZ and Americas markets, which it reached on a monthly basis in June. The restructure included closing operations in Mexico, Singapore and the UK, selling its businesses in Eastern Europe, the Middle East and South Africa, and reducing its headcount for ongoing operations.