FY 2023 financial results, outperformance in a growing market

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8 Feb 2024

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Group Financial Highlights

The Group reported underlying EBITDA of £58.8 million, representing £35.8 million or 156% growth on 2022 (£61.3 million, up 166% on a constant currency basis). This represents an excellent result as Travelex continues its strong recovery post the pandemic. Full year revenues were up 24% year-on-year, at £534.2 million (£541.9 million, up 26% on a constant currency basis), with continued growth expected, including from increased passenger numbers which are currently at c.87% of historical levels at the airports in which the Group operates.

	FY22	FY23	YOY%
Net revenue	£429.1m	£534.2m	24%
Underlying EBITDA	£23.0m	£58.8m	156%

Business Outlook

Travelex is well-placed to deliver further growth across all areas of its business, supported by several structural tailwinds, notably:

• The continued increase in international travel which is set to overtake pre-Covid-19 levels by 2025, reaching 1.25 billion outbound international trips compared to 1.15 billion in 2019[1]
• The growth in the travel cash market, which is anticipated by the Group to grow at an average of 14% per annum between 2022-2028[2], with rising spend per visitor
• The long-term global demand for physical currency, which remains a popular choice for travellers

The Group is investing in a number of initiatives to continue to drive its future growth. These include increased focus on the Travelex Money Card (TMC) and app, where there is a significant opportunity to increase Travelex’s share of the overall travel money market by being a one-stop-shop for cash and card. In 2023, Travelex was very successful in cross-selling the TMC to its existing walk-up customer base, providing a secure and convenient way for customers to spend with multiple currencies.

There is also potential to expand both the retail cash and outsourcing offerings into new countries, leveraging Travelex’s international footprint in key travel corridors. Furthermore, there is strong momentum in the wholesale banknote trading business as Travelex continues to win share in markets that are expanding, for example in Asia and the Middle East.

As a result, the Group expects to deliver another year of growth in 2024 with underlying EBITDA between £65 million and £75 million.

Operational Highlights

The retail and outsourcing business which operates in over 20 countries with c.1,550 sites, offers a unique omnichannel solution for customers' travel money needs and has rebounded strongly as the travel industry continued to recover in 2023, particularly in the Asia Pacific region, with 44% EBITDA growth since 2022.

In total, the Group added more than 65 new stores in 2023 and over 1,700 new colleagues to Travelex since 2022. Key airport wins include the Non-Schengen terminal at Munich Airport, giving Travelex 90% coverage of airport volumes in Germany, and a contract extension at Zurich Airport. The Group also continued to expand its off-airport store network, notably at London Paddington Station, and post period end at Westfield London in White City, further targeting the pre-trip market. Additional store expansions are planned in 2024 in key markets across the globe.

As the only global cash and card travel money provider, Travelex increased its card and app customer base by over 200,000 in 2023, demonstrating 70% year-on-year growth, including the successful launch of the TMC in Japan.

The wholesale business has continued to grow in 2023 particularly in the UK, Africa and Asia with 21% EBITDA growth since 2022. Having launched a wholesale banknotes operation in the Middle East in 2023, and with recent investments in cash processing capabilities in key markets, including a new centre in Hong Kong, Travelex is bolstering its wholesale capability globally as the business focuses on the next stage of growth in 2024.

Richard Wazacz, CEO of Travelex, commented:

“Over the last three years, Travelex has transformed into a stronger, more diversified business than ever before, whether through our own unrivalled branded store network, white-labelled offering in partners’ sites, or wholesale cash distribution. All of this has helped us to outperform in a strongly recovering travel market in 2023.

“Cash is still used by over 70% of travellers and demand for travel money is forecast to increase significantly over the medium term. We are ideally placed to take advantage of this growth thanks to our unique offering that combines the best of both cash and cards, in-store and online.

“Looking forward, global travel volumes are accelerating at pace thanks to strong demand from consumers making up for lost time post-Covid. To capitalise on this we have clear plans to grow our base of customers, open new sites, and move into new geographies. All of this gives us confidence that we will deliver another successful year of profitable growth.”

ENDS

 

For further information, please contact:

Travelex

For investor related queries:

victoria.benis-lonsdale@travelex.com

For media queries:

press@travelex.com 

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 c.750 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 over 70 airports, including 8 of the top 20, and in other key locations such as department stores and railway stations, including Selfridges and London Paddington. The Group processed c.15 million retail transactions in 2023.
• 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 across 80 countries and in 60+ currencies. 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, comprising 11 in total.
• 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.

[1] Company market model, using underlying travel data from a global consulting firm

[2] Company market model, using underlying travel data from a global consulting firm

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