By CAB Payments Holdings has issued a warning stating that its revenue for the full year is expected to be lower than previously anticipated. The London-listed fintech group predicts that its 2023 revenue will be at least 20% higher than the previous year’s figure of £109.4 million ($134 million), which is a 17% decline from its initial guidance.
The company cited various changes in market conditions in its key currency corridors, alongside ongoing uncertainties surrounding the Nigerian Naira. These factors have had an impact on both volumes and margins, particularly on the Central African franc and West African franc. Currency corridors refer to the payment flows between two countries.
“These challenges are recent but continuing, and coincide with the traditionally strong fourth quarter for both of these corridors; it is unclear when and to what extent conditions in these markets may improve,” stated CAB Payments.
In order to mitigate the impact on group profitability in 2023, CAB Payments will be exploring opportunities for cost reduction measures and operational efficiencies. As a result, the company expects that the majority of the revenue impact will affect the bottom line.
It is crucial for CAB Payments to navigate these uncertain conditions in order to maintain stability and achieve sustainable growth in the future.
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