In This Article:
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Active Customers Growth: Private customers grew by 25% year-over-year; business customers grew by 28%.
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Volume Growth: Total volume increased by 19% to GBP68 billion for the first six months.
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Holding Balances: Customer holding balances increased by 31% to almost GBP15 billion.
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Card Revenue: Card revenue grew by 50% to GBP170 million for the first half of the year.
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Cross Border Take Rate: Reduced from 0.67% to 0.59%.
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Underlying Income Growth: Increased by 19% year-over-year.
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Gross Profit Margin: Improved by 6% with a 30% increase in underlying gross profit.
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Profit Before Tax (PBT): Increased by 57% with a margin of 22% for the first six months.
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EPS: Earnings per share of 21.1 pence.
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Guidance: Underlying income growth expected between 15% to 20% with a profitability margin of 13% to 16%.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Wise PLC (WPLCF) has seen a significant growth in its cross-border business, tripling its active customer base and cross-border volume over the past four years.
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The company has successfully reduced fees while increasing underlying income, demonstrating effective cost management and competitive pricing.
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Wise PLC (WPLCF) has expanded its infrastructure, now operating in 40 currencies and holding 65 financial services licenses globally.
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The company has enhanced customer support by offering 24/7 service via phone and chat, improving customer experience.
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Wise PLC (WPLCF) has secured strategic partnerships, such as with Standard Chartered, to expand its Wise platform and increase transaction volumes.
Negative Points
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Wise PLC (WPLCF) still holds a very small market share in the cross-border money transfer market, indicating significant competition and room for growth.
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The company faces long sales cycles when securing partnerships with large banks, which can delay revenue realization.
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Despite infrastructure investments, Wise PLC (WPLCF) is still in the early stages of capturing the full potential of its market opportunity.
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The company has experienced fluctuations in foreign exchange rates, impacting cost of sales and potentially affecting profitability.
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Wise PLC (WPLCF) has not provided specific guidance on the impact of recent price cuts on customer growth, indicating uncertainty in short-term revenue projections.
Q & A Highlights
Q: Can you explain the process and significance of the Standard Chartered partnership? A: Kristo Kaarmann, CEO, explained that the sales cycle for large banks like Standard Chartered is lengthy, but the partnership is significant as it builds on the success with Mox, their digital subsidiary. This partnership will enhance customer experience by integrating Wise's infrastructure, which is expected to increase customer confidence and usage.