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(Alliance News) - A rise in Wise PLC's interim revenue was eclipsed by increased costs, but the payment company's shares rose nonetheless after it upped its revenue guidance on Tuesday.
Wise shares were up 11% to 834.80 pence each in London on Tuesday morning.
Wise is a London-based company which offers international money transfers, and was rebranded from TransferWise.
In the six months to September 30, pretax profit inched 6.0% lower to GBP18.8 million from GBP20.0 million a year before.
Administrative expenses shot up 56% to GBP152.2 million from GBP97.6 million, while cost of sales increased 13% to GBP81.2 million from GBP71.8 million, eclipsing a strong rise in revenue.
Revenue was up by a third to GBP256.3 million from GBP192.2 million.
Looking ahead, Wise said: "Based on our progress and on our current outlook for both volumes and price drops in the second half of the year, we now expect annual revenue growth for financial 2022 to be mid-to-high 20s on a percentage basis."
This was increased from the previously expected revenue growth in the low to mid-twenties, as announced in July.
"As previously guided, our strategy of reducing costs first and then lowering our prices means that the take rate is expected to be slightly lower in the second half of financial 2022 compared to the first half. Our expectation for the gross margin for financial 2022 also remains unchanged at [between] 65% and 67%, subject to foreign exchange-related costs continuing to remain broadly stable," Wise added.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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