Travelex Holdings Limited Q1 2019 Press Release

30 May 2019

Travelex results for the quarter 31 March 2019

30 May 2019

Travelex, a leading foreign exchange and international payments specialist, announces its results for the three months ended 31 March 2019

Highlights

Core Group Revenue (excl. disposed operations) up 3% to £174.5m, at constant exchange rate (CER)

Core Group EBITDA (excl. disposed operations) up by £1.5m from prior year to £2.9m, at CER

Revenue growth at CER driven by ME&T (up 14%), UK & Africa (8%) and NAM (1%)

As a result of a Group legal restructure, Travelex became a subsidiary of Finablr, with the parent company listing on the London Stock Exchange on 15 May 2019

Free cash balance of £85.7m at 31 March 2019. Net debt of £268.6m

Tony D’Souza, Chief Executive, commented:

“Travelex’s first quarter of 2019 has demonstrated that we are continuing to grow as a business while 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.

As part of the newly listed parent company Finablr, Travelex will continue to build its payments technology solutions capabilities with on-going investment in the payments platform.

We see significant opportunities within Finablr for Travelex’s great team of people to build on our reputation as the most admired brand in foreign exchange.”

Enquiries

Travelex

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

Brunswick Group                                                                                                             +44 (0) 207 404 5959

Brian Buckley, Gill Ackers, Alex Blake-Milton

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

3 months

ended

31 March

2018

£m

3months ended

31 March

2019

£m

Change

3 months

ended

31 March 2019 (CER) £m

Change (CER)

Core Group Revenue (excl. disposed operations)

169.5

174.5

3%

174.5

3%

Core Group EBITDA (excl. disposed operations)

1.4

2.5

1.1

2.9

1.5

Statutory Revenue

156.4

159.4

2%

Statutory EBITDA

1.1

25.9

Statutory loss after tax

(33.3)

(33.5)

31 Dec  2018

31 Mar  2019

Free cash

87.6

85.7

Net debt

(254.6)

(268.6)

Travelex has continued to deliver revenue growth, with Core Group Revenue excluding business disposals increased by £5.0m, or 3% at CER for the three months ended 31 March 2019. Core Group Revenue growth was driven by strong performance in ME&T (up 14%), single digit growth in mature markets (UK, Europe and NAM), partially offset by softer performance in ANZ (-4%) and Asia (-2%) due to softer retail performance and impact of the new Hong Kong airport contract. Excluding the impact of Hong Kong terms contract change, Asia grew at 3%.

Core Group EBITDA excluding disposed operations has increased by £1.5m for the three months on a CER basis.

Free cash has decreased by £1.9m since 31 December 2018 with an outflow of £14.7m from attributable operations being funded by draw-down on the Group’s credit facilities. As a result, net debt has increased by £14.0m since 31 December 2018.

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