Travelex Results for the year ended 31 December 2017

22 Mar 2018

Travelex Results for the year ended 31 December 2017

22 March 2018

Travelex, a leading foreign exchange and international payments specialist, announces strong growth in profitability and significant progress in its strategy to build a world class international money transfer and remittance offer


Core Group Revenue (excl. disposed operations) up 6% to £786.1m

Core Group EBITDA (excl. disposed operations) up £20.0m to £68.4m, in line with prior guidance

Revenue growth driven by UK & Africa (up 10%), Brazil (up 16%), Asia (up 17%) and Middle East & Turkey (ME&T) (up 16%)

Significant operational progress in line with Group strategy to build world-class international money transfer capability 

Successful launch of Travelex Wire in the UK in March 2017 with further enhancements for customers to be rolled out shortly

First US outsourcing partner processing substantial volumes since on boarding in June 2017 – proven platform now capable of supporting further outsourcing partners

Focus on growing Brazil payments is delivering positive revenue growth and market share gains

Targeted growth in remittance has resulted in Travelex processing 3 million transactions in 2017

Key improvements in operating efficiency delivered

Realised annualised costs savings target of £5.8m on a run rate basis

Transitioned to the Global Trading organisational structure

Migrated Shared Service Centre to Mumbai

Free cash balance of £76.3m at 31 December 2017. Net debt of £260.6m


Tony D’Souza, Chief Executive, commented:


“This has been a hugely busy and rewarding year for Travelex. Our financial performance has been strong in most regions as we maintained our focus on deepening our presence in key regions and targeting new markets where we see good growth potential. Our profitability also improved significantly, driven by a combination of factors including the benefit of the actions we took to improve performance in some regions as well as the restructuring activity which has sharpened our focus and delivered our planned cost savings.

“Last year we made significant investment in building our international money transfer capabilities and I am delighted with the progress that has been achieved. UK Wire was launched in March last year and feedback from customers has been very positive with further enhancements to come. Using our Wire platform we also on-boarded our first US financial institution with volumes now exceeding our expectations. The opportunity to extend this platform to new partners is an exciting prospect for the Group.

Looking ahead, Travelex is in great shape with a clear strategy and a great team of people focussed on continuing to build on the strong progress to date.”



Kat Kalinina, Global Head of PR                                                                                  +44 (0) 20 7812 5500


Tulchan Communications

Peter Hewer / Jessica Reid                                                                                          +44 (0) 20 7353 4200





About Travelex

Headquartered in London, Travelex has a 140-year heritage in foreign currency, pioneering the travellers’ cheques of the past and the digital payments of the future. With a presence in over 70 countries, and over 1,200 stores at both on-airport and off-airport locations around the world, Travelex has distilled its expertise and experience into a platform that reinvents physical and digital cross-border money movement globally to ensure its clients remain one step ahead of the competition. The platform provides financial institutions with a trusted, efficient and accurate international money transfer service, plus secure and reliable banknote delivery of both major and exotic currencies.

A market leading independent foreign exchange specialist, the business covers the entire value chain of the retail foreign exchange industry. Travelex Group is also active in the remittances and payments space enabling physical and digital cross-border money movement for consumers and financial institutions.



Business Overview

Summary of financial performance


12 months


31 December



12 months ended

31 December









12 months


31 December

2017 (CER) £m

Change (CER)





Core Group Revenue (excl. disposed operations)






Core Group EBITDA (excl. disposed operations)






Statutory Revenue






Statutory EBITDA






Statutory loss after tax







Overview of trading results

Travelex has continued to deliver revenue growth, with Core Group Revenue excluding business disposals increased by £47.2m, or 6% for the year ended 31 December 2017, positively impacted by the weakening of Sterling relative to the prior year.

Underlying revenue growth of 3% at constant exchange rates (CER) excluding disposed operations was driven by UK & Africa with £25.1m revenue growth attributed to UK Supermarket operations, the continuing fulfilment of Nigeria banknotes and bureau de change orders and banknote supply to the rest of Africa and Europe. Brazil continues to experience strong revenue growth of 16% compared to prior year, benefitting from growth in bank payments, remittance and digital payment product launches in May 2016 and the appreciation of Brazilian Real against Sterling. Asia revenue increased by 17% as a result of new store openings in Singapore in July 2016. Strong revenue growth of 16% was also recorded in ME&T due to new stores in the UAE and Turkey. North America (NAM) was the only region which experienced a decline in revenues, down 14%, due to challenging trading conditions across retail operations and outsourcing. In addition, the Group continued to benefit from its online channel delivering revenue growth of 37%.

Core Group EBITDA excluding disposed operations has increased by £20.0m, or 41% for the year ended 31 December 2017. Trading EBITDA contribution grew by £18.0m, mainly driven by increased banknote volumes in Nigeria and improved performance in Brazil due to increased revenue and management actions in 2016.

Central and shared costs (excluding bonus provision) improved by £7.1m from prior year benefitting from support function cost initiatives and reduction in products & strategy spend in line with the Group’s strategic focus. Support function cost initiatives have contributed £4.7m reduction in cost, and the Group is on track to realise the annualised cost savings target of £5.8m on a run-rate basis.

During the year, the Group has made significant steps towards growing international money transfer market share, our strategic focus for long-term profitable growth.

Following the successful launch of Travelex Wire in March 2017, the digital international money transfer platform has continued to be improved with additional currency offerings and interface modifications. Customers’ experience will be further enhanced with the launch of guaranteed rates planned for H1 2018, giving customers more visibility of their orders.

Leveraging the strong capability developed as part of the Travelex Wire product, in June 2017, the Group successfully on-boarded its first financial institution client and currently processes an average of $35m of principal volume per month, exceeding initial expectations. The Group expects to continue to expand our B2B2C offering with a strong business development pipeline in NAM and a planned launch in Australia during 2018.


Recognising cash remittance as a complementary product proposition across the retail estate, experienced senior hires have been brought into the business to drive a growth agenda through the Group’s strategy to expand its presence in key locations and developing its cash remittance offering. Further, Xpress Money was launched in the UK and Brazil during the year, adding cash to a bank account remittance service to the Group’s product offerings, with further country roll outs planned for 2018.


During the year Travelex transitioned to a new Global Trading organisational structure focussed on geographic regions. This new structure enables the Group to maximise the utilisation of local expertise, giving greater autonomy to adapt quickly to changes in local markets and creating greater management accountability. This will in turn support improved long-term performance and an acceleration of our core strategy.

The full experienced executive team in place for 2018, under the leadership of Tony D’Souza as Chief Executive Officer, will continue to drive the Group in building on the positive momentum across the business.

Net debt and liquidity

In 2017, the Group successfully replaced its senior secured notes and revolving credit facility (RCF) due in 2018 with €360m (c. £303m) of 8% senior secured notes and a new RCF of £90m due in 2022. This refinancing transaction and continued support from Shareholders have contributed to the Group’s financial stability and liquidity.  


A simplification of the Group’s debt structure was undertaken during the year with debt instruments held by UTX Holdings being novated to Travelex Holdings Limited from other Group subsidiaries.


Travelex continued to make good progress during 2017 with our full year financial performance reflecting growth in both revenue and EBITDA. We expect the positive momentum experienced in 2017 to continue this year. Travelex is well positioned with a leading global brand, a strengthened balance sheet and a clear long term growth strategy.








Share this page: