Wise Group Share News (WISE)

(Alliance News) - Wise PLC on Tuesday posted a hike in both revenue and transaction volumes, though the newly listed fintech firm saw its recent share price weakness continue.

Wise is a London-based company offering international money transfers that recently rebranded from TransferWise.

In its financial second quarter ended September, revenue increased 25% annually to GBP132.8 million from GBP105.9 million. Quarter-on-quarter, revenue was 7.5% higher from GBP123.5 million.

The revenue figure was in line with expectations, Wise said, and the fintech put growth down to "higher levels of volume seen in the quarter".

"Volume, a key metric for us, grew by 36% year-on-year and 10% quarter-on-quarter to GBP18.0 billion driven by strong growth in the number of active customers and growth in the average volume per customer from further adoption of the Wise account and higher volumes from business customers," Wise explained, adding that its number of active customers was 22% higher yearly at 3.7 million.

The company added: "In short, we are a stronger, more competitive business than we were at the start of the period: we move more volume at a lower price to customers, thanks to leaner infrastructure, but still generate the healthy gross margin needed to invest in our future. This demonstrates how we can move towards our mission whilst creating long-term value for both customers and shareholders."

Looking ahead, Wise expects its take rate to be "slightly lower" in the second half of its financial year, which runs until March. It puts this down to price reductions. Take rate is a fee charged by the platform where a transaction is performed.

Wise still expects revenue growth in the low-to-mid 20s percentage range for the full-year.

Wise joined the London Stock Exchange back in July, going down the route of a direct listing instead of a traditional initial public offering.

Shares in the company have hit a rocky patch recently. The stock continued a weak run, trading 2.8% lower at 896.00 pence each in London early Tuesday afternoon.

In late September, it suffered a hefty 4.1% fall in one session. The Telegraph newspaper had reported Wise Chief Executive Kristo Kaarmann was fined by the UK tax office. Wise shares have fallen 17% so far in October. However, its market capitalisation remains nearly GBP9 billion.

By Eric Cunha; ericcunha@alliancenews.com

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