The Block Inc (ASX: SQ2) share price is edging lower today amid the company releasing half-year results for Afterpay.
The company's shares are currently swapping hands at $164.11, a 0.22% fall.
Let's take a look at what Block reported today.
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How did Afterpay fare?
Block reported the financial results of Afterpay for the six months ended 31 December 2021.
Highlights included:
- Net loss after tax of $345.5 million, up 336% from the $79.2 loss in the prior corresponding period (PCP)
- Total comprehensive loss, net of tax, of $298.99 million, up 133% on PCP
- Operating loss of $263.7 million, up 287% on PCP
- Total income of $644.9 million
Afterpay loss skyrockets
The Afterpay net loss after tax surged 336% on the PCP, in which the company reported a $79.2 million loss.
Underpinning this loss was a massive surge in operating expenses. Employment expenses surged 79% to nearly $112 million. Marketing expenses also skyrocketed nearly 99% to 137.6 million.
Other operating expenses soared nearly 287% from $63 to $212.3 million.
On a positive note, total income exploded nearly 55% from $417.2 in the PCP.
Block announced it would acquire Afterpay in August 2021 and listed on the ASX as Block on 1 February 2022. Block issued 113,387,895 shares of Block valued at $19.6 billion. Afterpay is no longer listed on the ASX.
The company also trades on the New York Stock Exchange (NYSE: SQ). Block shares dropped 0.11% in the United States overnight. In after-hours trade, the company's shares fell 0.39%.
Block share price snapshot
The Block share price is falling 7% year to date, while it has surged 12% in the last month.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned 0.01% this year to date.
Block has a market capitalisation of about $7.4 billion based on its current share price
