Zip Co (ASX:Z1P) see coronavirus impact minimised by digital model

Company News

by Rachael Jones

Zip Co (ASX:Z1P) report that they have not observed any material impact from coronavirus across its business, though they do believe there will be implications for various parts of the economy.

The Company generated $30 million in revenue during Jan-Feb 2020 which was 98 per cent higher than the same period in 2019, with core transaction volume quarter-to date of $403 million up 85 per cent up year on year.

Whilst it’s inevitable there will be a softening in demand across certain segments, such as bricks and mortar retail, discretionary spend categories, travel and tourism, they expect continued strong demand for online purchases, bill payments, everyday spend and health - where Zip continues to increase its penetration.

Shares in Zip Co (ASX:Z1P) are trading 14.13 per cent lower at $1.19.