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Wise revenue gains 25per cent in Q2 as money transfer customers jump

Wise revenue gains 25per cent in Q2 as money transfer customers jump

FILE PHOTO: Wise logo is seen on a smartphone in front of a displayed stock graph in this illustration taken June 18, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

LONDON :Money transfer company Wise Plc said on Tuesday that its revenue was 132.8 million pounds (US$182.97 million) in the second quarter, a rise of 25per cent from the same period last year.

Wise, which listed on the London Stock Market in July, said in a trading update that the growth was due to a rise in customer numbers attracted in part by lower prices. It said almost 4 million customers transferred 18 billion pounds (US$24.8 billion) in the second quarter, up 36per cent from the previous year.

The company, which specialises in cross-border transfers and is one of Britain's most well-known fintech "unicorns", said it reduced costs for 1.7 million customers by 8 basis points from the same period last year, to an average of 0.62per cent.

That meant its "take rate" - the percentage of money being transferred over its platform that it books as revenue - fell to 0.74per cent from 0.8per cent a year earlier.

Wise shares fell as much as 3.2per cent in early trading before recovering nearly all of their losses, and were last down 0.2per cent at 920 pence.

Wise said it expects its take rate for the second half to be slightly lower than in the first half, but still anticipates revenue growth for the year to March 2022 to be in the low- to mid-20per cent range over the previous year.

Wise will release full interim results on Nov. 30.

(US$1 = 0.7260 pounds)

(Reporting by Tom Wilson, Editing by Louise HeavensEditing by Rachel Armstrong)

Source: Reuters

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