(Alliance News) - Wise PLC on Thursday said it expects growth in interest income in the first half of its 2023 financial year and maintained its medium-term guidance for its adjusted earnings before interest, tax, depreciation and amortisation margin.
The London-based financial technology company said volumes had grown 47% and revenues had grown 54% in the first half of its 2023 financial year, compared to a year prior. Wise's financial year ends on March 31.
Revenue for the second quarter is now expected between GBP208 million and GBP210 million, bringing revenue for the first half of its financial year to between GBP394 million and GBP396 million.
It said revenue growth for the year will be supported by increasing levels of interest income on customer balances. The net interest income associated with this activity is now expected to be approximately GBP17.0 million for the first half.
Wise also predicted a growth in interest income during the second half if rates persist at this level. It now expects total income growth of between 55% and 60% for the financial year, as a result.
Guidance remains unchanged for the firm's medium-term adjusted earnings before interest, tax, depreciation and amortisation margin, which is expected to be at or above 20% of total income.
Wise said its success to date was down to sharing economic benefits with customers as well as investors.
"This means that the growth in interest income will be at least partially offset by reductions in prices for our customers as well as contributing to funding growth in operating expenses as we invest in our business for the long term," the company explained.
Wise shares were trading 1.8% higher at 672.80 pence each in London on Thursday afternoon.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Wise Plc (WISE)