Currency exchange specialist Wise reported total first-half income of £416m on Tuesday, up 63% year-on-year, which it put down to “strong growth” in active customer numbers, and an increase in total volumes.
The London-listed firm said its adjusted EBITDA was 52% higher for the six months ended 30 September, at £92m, representing a margin of 22%.
Profit before tax rocketed 173% to £51.3m, as the company continued to invest in its teams and growth as its “profitable, cash generating model” enabled it to remain focussed on long-term opportunity.
Looking ahead, Wise said its total income was set to increase by between 55% and 60% for the full 2023 financial year, with a total income compound annual growth rate of more than 20% CAGR over the medium-term.
It pencilled in adjusted EBITDA margins at or above 20% over the same medium-term.
“Our goal today remains unchanged – to make moving and managing money faster, easier, cheaper and more transparent for people and businesses around the world,” said co-founder and chief executive officer Kristo Käärmann.
“In the first half of this financial year, our payments got faster, hitting a key milestone with 50% of all transfers now instant.
“And while we had to increase prices on some routes, we were able to decrease fees on others, enabling us to limit the impact of more volatile markets.”
As a result, Käärmann said its average fee was today 0.64%, as Wise remained “one of the cheapest and fastest options” for moving money internationally.
“Our customers agree – 5.5 million customers trusted us with their money in the second quarter alone, up 40% from last year, and in total, we helped move £51.3bn for people and businesses in these six months, an increase of 49%.
“But we are still solving only a fraction of the problem, and the fight for transparency must go on.
“In the past months we also joined the European Commission in calling on all providers to commit to full disclosure on all fees, including exchange rate markups, on all transfers to Ukraine – a significant step forward in the right direction for transparency in the industry.”
At 1044 GMT, shares in Wise were down 3.55% at 609.4p.
Reporting by Josh White for Sharecast.com.
