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- Wise has hiked its profit guidance for FY24 from the prior rate of 28-33% to 33-38%.
- High interest rates have continued to boost the firm.
Wise shares extended its previous gains in early Friday trade following the hiked profit guidance for its 2024 financial year. In a statement, the money transfer company stated that its income rose by 51% YoY while the number of its customers rose by 32%.
High interest rates have continued to boost the firm. Subsequently, it has hiked its profit guidance from the prior rate of 28-33% to 33-38%.
Wise’s profit guidance
As it strives to increase profitability in coming quarters, the money transfer company has launched new offerings. This includes an expatriate remittance service in China as well as its collaboration with Swift.
Speaking on these products, the firm’s interim CEO, Harsh Sinha states, “This quarter we launched a new service in China, enabling expatriates to send their salaries back home. For business customers we re-commenced onboarding new customers in 13 European countries where we had previously paused new customer onboarding whilst we upgraded our servicing and operational capacity.”
With regards to its partnership with Swift, which was announced in mid-September, Sinha noted that the solution will allow over 11,000 financial institutions that use Swift to route international transfer payments directly to Wise. To do so, they will not need to update their own back-ends.
The hiked profit guidance comes about four months after the firm reported that its profit before tax tripled to £146.5 million for the financial year that ended on 31stMarch 2023. Besides, its earnings per share (EPS) more than tripled to 11.53 pence.
Even with the upbeat figures, the company acknowledges the persistent uncertainty in the macroeconomic environment. This has been reflected in the relatively slow volume growth among its high value clients.
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