18th Apr 2023 10:20
(Alliance News) - Shares in Wise PLC dropped on Tuesday, despite the company reporting a sharp surge in fourth-quarter income and revenue, as the average volume per customer fell.
The stock was 14% lower at 502.80 pence on Tuesday morning in London.
The money transfer firm reported revenue of GBP223.5 million in the final quarter of its financial year ended March 31. This was up 45% from GBP153.8 million in the same quarter the previous year.
Wise's income totalled GBP279.5 million in the recent quarter, jumping 83% from GBP153.0 million a year prior. Full-year income rose by 73% to GBP964.3 million, beating Wise's previous guidance of growth of between 68% and 72% for full-year income.
Net interest income on customer balances swung to a profit of GBP56.0 million in the final quarter from a loss of GBP800,000 a year prior, as its take rate improved to 0.84% from 0.72%.
Volume climbed 25% to GBP26.7 billion in the final quarter from GBP21.4 billion a year before. However, average volume per customer fell by 7% year-on-year, mostly due to Personal VPC, which declined by 8% year-on-year as Wise reported a slower pace of growth in higher-volume customer cohorts.
"We believe payments amongst these cohorts, such as for property purchases and investments, to be more discretionary in nature and influenced by macroeconomic conditions to a greater extent. For example, as seen at times of FX volatility and USD strength like earlier in FY23 when we saw a pull-forward of volume in these cohorts," the London-based company explained.
Wise said it will provide financial 2024 guidance with its financial 2023 results announcement in June.
By Heather Rydings, Alliance News senior economics reporter
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