Equals
Group plc (AIM: EQLS), a publicly listed fintech payments company, announced a visible revenue jump for the first half of 2024 in a trading update released today (Wednesday). Revenue rose 33% compared to the same period last year. However,
the company did not provide data on net income or other important financial
metrics.
Equals Group Reports
Strong H1 2024 Revenue Growth, Up 33% Year-on-Year
Equals
reported total revenues of £60.0 million for H1 2024, an increase of more than
30% compared to £45.0 million in the same period last year. This growth was
driven primarily by strong performance in the Solutions and International
Payments segments.
FX revenues
also modestly increased, amounting to £25.24 million compared to £24.7 million
reported in H1 2023.
“FX
revenues, which incorporate both direct and white-label, are partly reliant on
market conditions and volatility in rates leading to increased customer
activity,” the company commented in the trading update. “After a quiet Q1-2024, we saw a strong pick up in Q2-2024. Overall, FX revenues from B2C customers are
subdued given macro-economic conditions whereas B2B revenues are more robust.”
Revenue per
single day in the second quarter was £527,000, up 36% from £388,000 reported in
Q2 of the previous year.
Key
highlights from the trading update include:
- Solutions
revenue surged to £24.7 million in H1 2024, up from £13.6 million in H1 2023 - International
Payments revenue increased to £13.0 million, compared to £11.0 million in the
prior year period - Fee-based
revenues showed strong growth, particularly in the Solutions segment - Interest
income saw significant growth due to increased customer balances and improved
rates from banking partners
The company
also reported a solid cash position of £20.5 million as of June 30, 2024, with
no debt. This figure accounts for a £1.9 million dividend payment to
shareholders and £1.8 million in acquisition-related costs settled during the
period.
Equals
Group’s acquisition of Equals Money Europe (formerly Oonex S.A.) on July 4,
2023, has begun to contribute to revenue growth. The European subsidiary
reported revenue of €1.6 million in Q2 2024, up from €816,000 in Q2 2023 on a
like-for-like basis.
The company
plans to release its full interim results for H1 2024 in the week of September
9, 2024. Additionally, Equals Group stated that its ongoing strategic review
remains in progress, with a further update expected on July 10, 2024.
This article was written by Damian Chmiel at www.financemagnates.com.
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