Travelex registers rise in Q2 2023 revenues
The Travelex International Group today reported its financial results for the second quarter of 2023.
The Group generated revenues of £136.4 million in Q2 2023, £19.0 million higher than Q1 and £29.6 million (28%) greater than 2022. First half revenues of £253.8 million were £78.3 million (45%) above 2022.
With the beginning of peak trading, the Group produced positive underlying EBITDA in the quarter of £14.7 million, £6.3 million favourable to Q2 2022. First half underlying EBITDA of £18.9 million was £17.2 million favourable to 2022.
Strong revenue recovery continued into Q2, particularly across the Retail businesses on growing global passenger numbers driven by the final countries in the APAC region easing travel restrictions and increased consumer confidence in international travel evident in markets where recovery was already well progressed.
2023 revenues of £253.8 million are aligned to 2019 levels (£253.4m) however Underlying EBITDA of £18.9m is £13m favourable to 2019 (£5.9m) driven by savings on staff and variable trading costs.
Capex at June of £6.8m was £3.3m greater than 2022 driven by investments in IT infrastructure and improvements in the Retail store network.
Free cash of £16.4m was £25.3m lower than 2022 as the business continues to prioritise investment in cash in tills and vaults across the Retail and Wholesale networks to fulfil increased demand. In April, Travelex received a further £20m of tap funding proceeds to support increased trading volumes and working capital requirements as Asia and the wider business has continued to recover. £70m of funding was also received in the same period in 2022.
Following the continued trading performance in the year to date and as the Group operates through its peak trading season, the published forward guidance of £60m to £70m of underlying EBITDA remains unchanged.