The submit Travelex revenue surges as global travel returns appeared first on TD (Travel Daily Media) Brand TD.
Travelex International proclaims its full-year outcomes for the yr ended 31 December 2023, reporting robust revenue and underlying EBITDA progress throughout all enterprise segments and a constructive future outlook.
Group Financial Highlights
The Group reported underlying EBITDA of £58.8 million, representing £35.8 million or 156% progress on 2022 (£61.3 million, up 166% on a relentless foreign money foundation). This represents a wonderful outcome as Travelex continues its robust restoration submit the pandemic. Full yr revenues have been up 24% year-on-year, at £534.2 million (£541.9 million, up 26% on a relentless foreign money foundation), with continued progress anticipated, together with from elevated passenger numbers that are at present at c.87% of historic ranges on the airports during which the Group operates.
| FY22 | FY23 | YOY% | |
| Net revenue | £429.1m | £534.2m | 24% |
| Underlying EBITDA | £23.0m | £58.8m | 156% |
Business Outlook
Travelex is well-placed to ship additional progress throughout all areas of its enterprise, supported by a number of structural tailwinds, notably:
- The continued enhance in worldwide travel which is about to overhaul pre-Covid-19 ranges by 2025, reaching 1.25 billion outbound worldwide journeys in comparison with 1.15 billion in 2019
- The progress within the travel money market, which is anticipated by the Group to develop at a median of 14% every year between 2022-2028, with rising spend per customer
- The long-term global demand for bodily foreign money, which stays a well-liked selection for travellers
The Group is investing in a variety of initiatives to proceed to drive its future progress. These embody elevated concentrate on the Travelex Money Card (TMC) and app, the place there’s a vital alternative to extend Travelex’s share of the general travel cash market by being a one-stop-shop for money and card. In 2023, Travelex was very profitable in cross-selling the TMC to its present walk-up buyer base, offering a safe and handy means for patrons to spend with a number of currencies.
There can be potential to develop each the retail money and outsourcing choices into new international locations, leveraging Travelex’s worldwide footprint in key travel corridors. Furthermore, there’s robust momentum within the wholesale banknote buying and selling enterprise as Travelex continues to win share in markets which are increasing, for instance in Asia and the Middle East.
As a outcome, the Group expects to ship one other yr of progress in 2024 with underlying EBITDA between £65 million and £75 million.
Operational Highlights
The retail and outsourcing enterprise which operates in over 20 international locations with c.1,550 websites, gives a singular omnichannel answer for patrons’ travel cash wants and has rebounded strongly as the travel business continued to recuperate in 2023, notably within the Asia Pacific area, with 44% EBITDA progress since 2022.
In whole, the Group added greater than 65 new shops in 2023 and over 1,700 new colleagues to Travelex since 2022. Key airport wins embody the Non-Schengen terminal at Munich Airport, giving Travelex 90% protection of airport volumes in Germany, and a contract extension at Zurich Airport. The Group additionally continued to develop its off-airport retailer community, notably at London Paddington Station, and submit interval finish at Westfield London in White City, additional concentrating on the pre-trip market. Additional retailer expansions are deliberate in 2024 in key markets throughout the globe.
As the one global money and card travel cash supplier, Travelex elevated its card and app buyer base by over 200,000 in 2023, demonstrating 70% year-on-year progress, together with the profitable launch of the TMC in Japan.
The wholesale enterprise has continued to develop in 2023 notably within the UK, Africa and Asia with 21% EBITDA progress since 2022. Having launched a wholesale banknotes operation within the Middle East in 2023, and with latest investments in money processing capabilities in key markets, together with a brand new centre in Hong Kong, Travelex is bolstering its wholesale functionality globally as the enterprise focuses on the following stage of progress in 2024.
Richard Wazacz, CEO of Travelex, commented: “Over the final three years, Travelex has remodeled right into a stronger, extra diversified enterprise than ever earlier than, whether or not by means of our personal unrivalled branded retailer community, white-labelled providing in companions’ websites, or wholesale money distribution. All of this has helped us to outperform in a strongly recovering travel market in 2023.
“Cash remains to be utilized by over 70% of travellers and demand for travel cash is forecast to extend considerably over the medium time period. We are ideally positioned to reap the benefits of this progress because of our distinctive providing that mixes the most effective of each money and playing cards, in-store and on-line.
“Looking forward, global travel volumes are accelerating at pace thanks to strong demand from consumers making up for lost time post-Covid. To capitalise on this we have clear plans to grow our base of customers, open new sites, and move into new geographies. All of this gives us confidence that we will deliver another successful year of profitable growth.”
The submit Travelex revenue surges as global travel returns appeared first on Brand TD.
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