Q1 2024 Results
15 May 2024
15 MAY 2024
Travelex International Limited
(“Travelex”, the “Group”, or “Travelex International Group”)
Q1 2024 Financial Results
Revenue growth led by ongoing expansion in growth markets
Travelex International Group – the global travel money services business – today announces its quarterly results for the three months ended 31 March 2024, reporting revenue growth driven by continued improvement in the core business and ongoing expansion in the growth regions of Asia and the Middle East and Turkey (ME&T).
Read the full results here.
Group Financial Highlights
The Group reported net revenues of £120.7 million (Q1 2023: £117.4 million), representing growth of 3% year on year. EBITDA declined by 27% to £3.1 million during the quarter (Q1 2023: £4.2 million), predominately due to macroeconomic conditions and the expected impact of changes to the regulatory environment in Brazil impacting margins.
Excluding Brazil, the Group’s revenues increased by 8% (£7.8m) and EBITDA by 178% (£1.2m) year on year.
The Asia business has reported impressive growth year on year, with revenues up 57% to £18.4 million (Q1 2023: £11.8 million) and EBITDA up 119% to £5.9 million (Q1 2023: £2.7 million). This is in part due to the continued recovery of travel in the region, driving growth in the Retail businesses in Japan, China and the Hong Kong market, but also the strong performance of the Group’s Wholesale business in the Asia region.
The Retail businesses in the ME&T region continues to go from strength to strength. As a region, it was the second highest contributor to Group revenues during the quarter, delivering net revenues of £23.4 million, up 12% year on year (Q1 2023: £20.9 million). EBITDA in the ME&T region was up 27% year on year to £5.4 million (Q1 2023: £4.3 million).
The Group’s global Wholesale business reported a revenue increase of 22% and EBITDA growth of 10% (Q1 2024: £5.9 million; Q1 2023: £5.4 million). This was driven predominantly by Asia, following the investment into the cash processing centre in Hong Kong, and also due to the continued growth in ME&T.
Net revenues from the UK business were down 6% (Q1 2024: £32.1 million; Q1 2023: £34.3 million), partly as a result of the reduction of regional airports during 2023 and some lower retail volumes in the first quarter of 2024.
Net revenues were up 4% in Australia and New Zealand (ANZ), to £14.1 million (Q1 2023: 13.6 million), however EBITDA declined to £1.2 million (Q1 2023: £2.5 million) as a result of normalisation of rental contracts following rental benefits in the prior year.
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|
Q1 2023 |
Q1 2024 |
YOY% |
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Net revenue |
£117.4m |
£120.7m |
3% |
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Underlying EBITDA |
£4.2m |
£3.1m |
(27%) |
Operational Highlights
Travelex acquired Number One Brokerage in Brazil in March 2024, a specialist foreign exchange brokerage and consultancy, expanding and further diversifying the Group’s activities and services for clients in the country.
The Group won a new five-year contract with Singapore’s Changi Airport during the period, which will be effective from July 2024 and see Travelex double its bureaux, terminal and staff footprint in the major Asian travel hub. New stores were also opened in Shanghai Pudong Airport and Narita, Tokyo. This follows a number of other airport successes including a five-year contract with Munich Airport’s non-Schengen Terminal, commencing in October 2025, and the expansion of Travelex’s footprint in Abu Dhabi with the launch of seven stores and eight ATMs at Zayed International Airport.
Travelex opened 12 new stores in the first quarter of the year, including a new bureau at Westfield London, Europe’s largest shopping centre, further expanding the off-airport distribution network.
The Group had several successes in digital product developments over Q1 2024:
- Australian partnerships expansion:
- Relaunching online foreign exchange cash services for Commonwealth Bank of Australia (CBA), the country’s largest bank serving more than 11 million retail customers;
- Extending FX cash click and collect with travel agency Hello World for an additional five years;
- Online click and collect service launched in Hong Kong;
- Launch of Apple Wallet™ compatibility for the Travelex Money Card (TMC) in the UK, following the introduction of Google Wallet™ last year;
- Mobile App launch in New Zealand.
Richard Wazacz, CEO of Travelex, commented:
“While the first quarter of the year is naturally a period of lower revenues for the Group due to seasonality of travel trends, our performance highlights the continued growth and opportunity through our diversified business model.
“In more mature markets, we have continued to invest in our digital proposition, in line with our plans to further scale the Travelex Money Card and App, while maintaining our unrivalled retail and wholesale presence. We continue to focus on delivering further improvements in operating performance in key airport locations.
“We saw impressive growth in Asia, the Middle East and Turkey, where travel continues to recover but also where our recent investment and successes are bearing fruit. The potential for further growth in these markets is evident, including our recent win with Changi Airport, expansion in Abu Dhabi, and our Hong Kong cash processing investment already delivering strong results.
“Despite specific market challenges in Brazil, the business continues to be well placed as a leading FX provider in the market. Our recent investment in the acquisition of Number One further solidifies this position.
“Structural tailwinds, such as the continued growth of international passenger traffic within key travel corridors, underpins the growth opportunity for the Group. I am confident that this, combined with Travelex’s unique brand positioning, means we are well positioned to continue to deliver profitable growth.”
ENDS
For further information, please contact:
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Travelex |
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For investor related queries: |
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For media enquiries: |
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Powerscourt Justin Griffiths, Ben Foster, Gilly Lock 020 7250 1446 / Travelex@powerscourt-group.com |
Notes to Editors
Travelex is a leading global travel money services business that operates across the entire travel money value chain, providing travel currency and physical banknotes to customers via a retail, outsourcing and wholesale model and is the only global player with an omnichannel cash and card offering.
Headquartered in London and employing c.6,000 people worldwide, Travelex has a unique retail global footprint spanning over 600 stores and 800 ATMs in over 20 countries across six continents.
Travelex is a highly diversified business operating across four key segments:
- Retail: A unique omnichannel offer comprising cash and prepaid Travelex Money Card including both airport and off-airport stores together with online, where customers can top-up via a mobile app, click and collect and order home delivery. Travelex is present in 80 airports, including 9 of the top 20, and in other key locations such as department stores and railway stations, including Selfridges, Westfield in the UK and Australia and London Paddington.
- Outsourcing: Provision of cash, cards and value-added services (e.g. banknote delivery, bureau management, ATM services and home delivery) to long-term partners on multi-year contracts, including banks, supermarkets and travel agents, expanding the Group’s accessible customer base.
- Wholesale: Travelex has the capability to provide end-to-end wholesale cash services in 80 countries. The Group provides onshore B2B foreign exchange (FX) services and bulk sourcing and delivering of large-scale hard currency banknotes to sophisticated global institutions. Its wholesale business is underpinned by deep logistical expertise and an international vault and cash processing centre network, including some of the world’s largest.
- Brazil: A fully-licensed FX specialist bank and broker providing cash, cards and international payments, including mass payments, import and export, and hedging of FX current accounts for High Net Worth Individuals, corporates and travellers.