By Wise PLC, the London-listed money-transfer company, has announced a significant increase in pretax profit for the first half of fiscal 2024. This growth can be attributed to strong customer expansion and higher transaction volumes.
For the six-month period ending September 30, Wise reported a pretax profit of £194.3 million ($238.6 million), compared to £51.3 million in the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) – a key performance metric which excludes exceptional and one-off expenses – rose to £241.1 million from £91.6 million.
The company’s revenue also experienced substantial growth, reaching £498.2 million compared to £397.4 million, driven by a 30% increase in the customer base.
Wise has revised its projected income growth for the fiscal year, expecting it to be between 33% and 38%, up from the previous estimate of 28% to 33%. Furthermore, the company anticipates a compound annual growth rate of over 20% in the medium term, as previously guided. In addition, Wise predicts that its adjusted EBITDA margin will be significantly higher due to increased interest rates.
For the first half of the year, income surged by 58% to £656.0 million, while the adjusted EBITDA margin stood at 37%.
Chief Technology Officer and Interim Chief Executive Officer Harsh Sinha highlighted Wise’s progress in expanding their global network through partnerships with New Payments Platform and Swift. These collaborations have been instrumental in driving their growth and improving their financial performance.
Despite this positive outlook, Wise’s shares were down to 683.0 pence, representing a decrease of 0.8% at 0808 GMT.
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