Travelex Holdings Limited Q3 2018 Press Release

29 Nov 2018

 Travelex Results for the nine months ended 30 September 2018

29 November 2018

Travelex, the world’s leading foreign exchange specialist, announces its results for the nine months ended 30 September 2018

Highlights

Core Group Revenue (excl. disposed operations) up 5% to £630.6m, at constant exchange rate (CER)

Core Group EBITDA (excl. disposed operations) up by £10.4m from prior year to £66.4m, at CER

Revenue growth at CER driven by ME&T (up 24%), JANZ (up 13%), Brazil (up 9%), NAM (up 8%)

Transfer of assets from United Overseas Bank to the Group was completed in Q3, strengthening our banknote global supply chain

Trading since 30 September has continued to meet management’s expectations

We do not expect any material operational or regulatory impact from Brexit.  We will continue to closely monitor our currency exposures as Brexit events develop

 

Finablr Status

Shareholders are continuing to progress the move of Travelex’s ownership structure under a Finablr holdco

Finablr and its major shareholders continue to consider and evaluate a range of strategic options, including a public listing of the Finablr group. No definitive decision has been taken with respect to any specific course of action at this stage

Tony D’Souza, Chief Executive, commented:

 

“Travelex’s third quarter of 2018 has demonstrated that we are continuing to grow as a business whilst still driving strong EBITDA performance.  We are committed to a sustainable future through profitable revenue growth, on-going focus on appropriate cost measures and maintaining high standards of compliance and controls.

The potential of Travelex within Finablr is demonstrated by the on-going investment in our payments platform.  We have also launched Travelex Pay in the US, a new WeChat service for travellers from mainland China distributed by Travelex and powered by Swych, the global digital gifting platform majority owned by Finablr.  These opportunities arise from Travelex’s reputation as the most admired brand in foreign exchange and our great team of people.”


 

Enquiries

Travelex

Andrea Gordon, Head of Communications                                                           +44 (0) 20 7812 5500

 

Tulchan Communications

James Macey White / Jessica Reid                                                                            +44 (0) 20 7353 4200

 

 

About Travelex

Headquartered in London, Travelex has a rich heritage in foreign currency, pioneering the travellers’ cheques of the past and the digital payments of the future. With a presence in over 27 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 payments service, plus secure and reliable banknote delivery of both major and exotic currencies.

A category 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.

Travelex is part of the Finablr network of brands. With category renowned brands in its fold, Finablr provides a broad array of innovative and trusted financial solutions for consumers, corporates and enterprises, through its deep regulatory know-how, relentless focus on technological innovation and a global network of retail stores, digital channels, payments platforms and industry partnerships.

 

For more information, visit the Travelex website: www.travelex-corporate.com

Summary of financial performance

 

9 months

ended

30 Sep 2017

 

£m

9 months

ended

30 Sep

2018

 

£m

Change

 

 

 

 

 

9 months

ended

30 Sep 2018

 (CER)

 £m

Change

 

 

 

(CER)

 

Core Group Revenue (excl. disposed operations)

599.7

606.1

1%

630.6

5%

Core Group EBITDA (excl. disposed operations)

56.0

60.4

4.4

66.4

10.4

Statutory Revenue

549.0

551.3

-

Statutory EBITDA

52.3

54.3

3.8%

Statutory loss after tax

(104.3)

(69.6)

 

 

31 Dec  2017

30 Sep  2018

 

 

Free cash

76.3

76.1

 

 

Net debt

(260.6)

(273.6)

 

 

Travelex has delivered underlying revenue growth of £30.9m, or 5% at CER for the nine months ended 30 September 2018. This is driven by 6% like-for-like retail growth with strong performance in Middle East & Turkey (24%), North America (10%) and Japan, Australia & New Zealand (7%). There was also 7% growth in Outsourcing driven by new contract wins in Australia and 12% in Wholesale driven by increases in Nigeria bureau de change orders and growth in banknote supply to the rest of Africa. Revenue growth was adversely impacted by the strengthening of sterling relative to the prior year (except EUR) due to the translation of revenues earned outside the UK.

Core Group EBITDA excluding disposed operations has increased by £10.4m for the nine months on a CER basis. Retail contributed £11.5m EBITDA increase while Wholesale & Outsourcing contributed additional £3.6m as a result of increase in revenues and slightly better margins.

Free cash has decreased by £0.2m since 31 December 2017 with the outflow of cash inventory ahead of the summer peak trading period being funded by draw-down on the Group’s credit facilities.  Consequently, net debt has increased by £13.0m since 31 December 2017.

 

 

 

 

 

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