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(Alliance News) - Wise PLC on Tuesday reported a surge in annual profit in the financial year that ended March 31, supported by strong growth in its number of active customers.
Shares were up 20% at 630.80 pence each on Tuesday morning in London.
The London-based money transfer firm reported pretax profit of GBP146.5 million, multiplied from GBP43.9 million the year prior, as gross profit grew by 73% to GBP638.2 million from GBP369.1 million.
Revenue in the year jumped 51% to GBP846.1 million from GBP559.9 million. This came as the company upped its active customer count by 34% to around 10 million.
This customer growth led to a 37% year-on-year increase in volumes to GBP104.5 billion, Wise said. The growth in customers and resulting volumes were the main driver behind the 42% increase in cross-border transaction revenue to GBP679.5 million, it added.
Chief Executive Officer Kristo Kaarmann said: "At Wise we are laser focused on our mission of money without borders and building the products that our customers need. Over the past year, we continued to invest in our infrastructure and launched new features, such as Assets, to make moving and managing money faster, cheaper, easier, and more transparent for more people and businesses around the world. Today, 55% of our payments reach their recipient in less than 20 seconds and we save our customers an estimated GBP1.5 billion in fees annually."
Adjusted earnings before interest, tax, depreciation and amortisation was GBP238.6 million, up 97% from GBP121.4 million the year before.
Looking forward, Wise said it expects active customer growth to be the primary driver of income growth in financial 2024. It expects active customer growth to be between 28% and 33% in financial 2024.
Additionally, Wise said it continues to expect its adjusted Ebitda margin to be at or above 20% over the medium term.
By Xindi Wei, Alliance News reporter
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