REG - Wise PLC - 3rd Quarter Results

WiseAnnouncement

16/01/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250116:nRSP5110Ta&default-theme=true

RNS Number : 5110T  Wise PLC  16 January 2025

 

24% volume growth YoY driven by 9m active customers

 

●     We are making significant strides toward our long-term goal of
becoming the network for the world's money as over 9m customers used Wise in
Q3 to move or manage their money globally representing 20% growth YoY.

●     With more customers using Wise, cross border volumes grew 24% (27%
on a constant currency basis) to £37.8bn and Wise account balances grew by
26% to £16.2bn.

●     Continued adoption of the Wise account resulted in a 39% YoY
increase in card and other revenue.

●     Our discipline and focus in reducing unit costs allowed us to
lower prices in the first half of FY25, which was the main driver of the cross
border take rate reducing by 11bps YoY to 56bps in Q3.

●     Underlying income grew by 13% YoY to £349.5m in Q3, bringing YTD
growth to 17% YoY on a reported basis.  Changes in FX rates result in an
understatement of our growth, with underlying income having grown by 20% on a
constant currency basis.

●     On a constant currency basis, we continue to expect underlying
income growth of 15-20% in FY25, with the reported growth expected to be at
the lower end of this range as a result of the FX headwind.

 

"This quarter saw us take another step closer to achieving our mission, most
notably through extending the availability of Wise to even more customers.

 

Having seen rapid customer growth from the popularity of the Wise Account for
individuals in Brazil, we were pleased to also launch our service for
micro-businesses based in Brazil during the quarter. This comes as we work
towards integrating with Brazil's payment system (PIX) which will further
enhance the quality of our proposition in the country.

 

Wise Platform continues to bring the power of the Wise infrastructure directly
to our partners and their customers. We were delighted to announce that Morgan
Stanley is now using Wise for international settlements capabilities for its
corporate customers. Additionally, we announced that Wise will soon power
faster and cheaper international payments for Standard Chartered's
cross-border payment service, SC Remit. These partnerships provide even more
people and businesses with easy access to a service that continues to become
faster and lower cost. Given their scale, entering into relationships with
such leading global institutions represents important milestones in our
journey as we move closer towards achieving money without borders."

 

-Kristo Käärmann, Co-founder and Chief Executive Officer

 

                                   Q3 FY25  Q3 FY24  YoY Movement
 Cross-border volume (£ billion)   37.8     30.6     24%
 Underlying income (£ million)     349.5    307.9    13%
 Cross-border take rate (%)        0.56%    0.67%    -11 bps
 Instant transfers (%)             65%      61%      +4 pps

 

You can read more about our progress in our quarterly Mission Updates on
https://wise.com/p/our-mission.

Please see the appendix for further historical financial information.

Enquiries

Martin Adams - Investor Relations

owners@wise.com (mailto:owners@wise.com)

 

Sana Rahman - Communications

press@wise.com

 

Brunswick Group

Charles Pretzlik / Sarah West / Nick Beswick

Wise@brunswickgroup.com

+44 (0) 20 7404 5959

 

About Wise

Wise is a global technology company, building the best way to move and manage
the world's money. With Wise Account and Wise Business, people and businesses
can hold over 40 currencies, move money between countries and spend money
abroad. Large companies and banks use Wise technology too; an entirely new
network for the world's money.

 

Co-founded by Kristo Käärmann and Taavet Hinrikus, Wise launched in 2011
under its original name TransferWise. It is one of the world's fastest growing
tech companies and is listed on the London Stock Exchange under the ticker
WISE.

 

In fiscal year 2024 Wise supported around 13 million people and businesses,
processing approximately £118bn billion in cross-border transactions, and
saving customers over £1.8 billion.

 

A glossary of terms can be found in our annual report and accounts
(https://wise.com/imaginary-v2/images/3f1628373b212ca54c1ac73c68d69b72-WISE-2024-Annual-Report-and-Accounts.pdf)
.

 

FORWARD LOOKING DISCLOSURE DISCLAIMER

This report may include forward-looking statements, which are based on current
expectations and projections about future events. These statements may
include, without limitation, any statements preceded by, followed by or
including words such as "forward looking", "guidance", "target", "believe",
"expect", "intend", "may", "anticipate", "estimate", "forecast," , "project",
"will", "can have", "likely", "should", "would", "could" and  any other words
and terms of similar meaning or the negative thereof. These forward-looking
statements are subject to risks, uncertainties and assumptions about Wise and
its subsidiaries. In light of these risks, uncertainties and assumptions, the
events in the forward-looking statements may not occur.

Past performance cannot be relied upon as a guide to future performance and
should not be taken as a representation that trends or activities underlying
past performance will continue in the future, and the statements in this
report speak only as at the date of this report. No representation or warranty
is made or will be made that any forward-looking statement will come to pass
and there can be no assurance that actual results will not differ materially
from those expressed in the forward-looking statements.

Wise expressly disclaims any obligation or undertaking to update, review or
revise any forward-looking statements contained in this report and disclaims
any obligation to update its view of any risks or uncertainties described
herein or to publicly announce the results of any revisions to the
forward-looking statements made in this report, whether as a result of new
information, future developments or otherwise, except as required by law.

Appendix - Historical Financials

 

 Quarterly                           Q3 FY2023  Q4 FY2023  Q1 FY2024  Q2 FY2024  Q3 FY2024  Q4 FY2024  Q1 FY2025  Q2 FY2025  Q3 FY2025  QoQ        Q YoY      QoQ        Q YoY

                                                                                                                                        Movement   Movement   Movement   Movement

                                                                                                                                                              Constant   Constant

                                                                                                                                                              CCY        CCY
 Active Customers (thousand)         5,793      6,125      6,670      7,232      7,512      7,911      8,374      8,892      9,047      2%         20%        -          -
 Personal (thousand)                 5,475      5,784      6,307      6,847      7,120      7,517      7,962      8,469      8,612      2%         21%        -          -
 Business (thousand)                 319        340        363        385        392        395        412        423        435        3%         11%        -          -

 Cross-border volume (£ billion)¹    26.4       26.7       28.2       29.2       30.6       30.6       33.2       35.2       37.8       7%         24%        8%         27%
 Personal (£ billion)                19.0       19.5       20.8       21.6       22.3       22.6       24.5       26.1       27.4       5%         23%        5%         27%
 Business (£ billion)                7.4        7.3        7.4        7.6        8.3        8.0        8.7        9.1        10.4       15%        26%        15%        29%

 Customer balances (£ billion)       10.1       10.7       11.5       12.3       12.9       13.3       14.1       14.7       16.2       10%        26%        -          -
 Personal (£ billion)                5.4        5.8        6.5        7.0        7.5        7.9        8.5        9.0        9.8        9%         31%        -          -
 Business (£ billion)                4.7        4.9        5.0        5.3        5.4        5.4        5.6        5.7        6.4        13%        19%        -          -

 Cross-border revenue (£ million)    181.3      177.7      187.9      196.5      206.2      204.6      211.2      207.9      212.9      2%         3%         3%         6%
 Personal (£ million)                141.5      139.7      149.0      154.7      161.2      161.0      167.1      167.2      169.3      1%         5%         2%         8%
 Business (£ million)                39.8       38.0       38.9       41.8       45.0       43.6       44.1       40.7       43.6       8%         (3%)       8%         (1%)

 

 

Note: Differences between 'total' rows and the sum of the constituent
components of Personal and Business are due to rounding.

 

 

 

 

 

 

 

 

Appendix - Historical Financials (continued)

 

 Quarterly                                                   Q3 FY2023  Q4 FY2023  Q1 FY2024  Q2 FY2024  Q3 FY2024  Q4 FY2024  Q1 FY2025  Q2 FY2025  Q3 FY2025  QoQ        Q YoY      QoQ        Q YoY

                                                                                                                                                                Movement   Movement   Movement   Movement

                                                                                                                                                                                      Constant   Constant

                                                                                                                                                                                      CCY        CCY
 Card and other revenue (£ million)                          43.9       45.8       51.6       62.2       70.4       72.6       80.0       92.8       97.8       5%         39%        6%         42%
 Personal (£ million)                                        32.2       33.7       37.4       46.1       51.9       54.0       59.6       70.5       74.0       5%         43%        6%         46%
 Business (£ million)                                        11.7       12.1       14.2       16.1       18.5       18.6       20.4       22.3       23.8       6%         28%        6%         31%

 Underlying interest income (first 1pct yield) (£ million)   24.2       25.4       27.4       29.7       31.3       32.3       34.2       36.3       38.8       7%         24%        7%         27%
 Personal (£ million)                                        13.0       13.7       15.2       16.9       18.0       19.0       20.4       22.1       23.6       7%         31%        7%         34%
 Business (£ million)                                        11.2       11.7       12.2       12.8       13.3       13.3       13.8       14.2       15.2       7%         14%        7%         17%

 Underlying income (£ million)                               249.4      248.8      266.9      288.4      307.9      309.5      325.4      337.0      349.5      4%         13%        4%         17%
 Personal (£ million)                                        186.7      187.0      201.6      217.7      231.1      234.0      247.1      259.8      266.9      3%         16%        3%         19%
 Business (£ million)                                        62.7       61.8       65.3       70.7       76.8       75.5       78.3       77.2       82.6       7%         7%         7%         10%

 Interest income (above the first 1pct yield) (£ million)    22.2       46.1       68.3       85.7       100.9      109.6      114.3      115.9      110.0      (5%)       9%         (5%)       12%
 Personal (£ million)                                        11.9       25.0       37.9       48.7       58.0       64.3       68.0       70.4       67.0       (5%)       16%        (5%)       19%
 Business (£ million)                                        10.3       21.1       30.4       37.0       42.9       45.3       46.3       45.5       43.0       (5%)       1%         (5%)       3%

 Benefits paid relating to customer balances (£ million)     (2.9)      (15.5)     (24.3)     (29.0)     (33.7)     (37.9)     (41.3)     (43.5)     (38.2)     (12%)      14%        (11%)      18%
 Personal (£ million)                                        (1.7)      (9.0)      (14.1)     (16.9)     (19.1)     (22.6)     (24.8)     (26.5)     (24.3)     (8%)       28%        (7%)       33%
 Business (£ million)                                        (1.2)      (6.5)      (10.2)     (12.1)     (14.6)     (15.3)     (16.5)     (17.0)     (13.9)     (18%)      (5%)       (18%)      (1%)

 Cross-border take rate (%)                                  0.69%      0.67%      0.67%      0.67%      0.67%      0.67%      0.64%      0.59%      0.56%      -3 bps     -11 bps    -          -

 

Note: Differences between 'total' rows and the sum of the constituent
components of Personal and Business are due to rounding.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRTDZGMMZKDGKZZ