Travelex registers steep rise in revenues in Q2 2022
Travelex has reported a set of solid financial results for the second quarter of 2022.
Travelex generated revenues of £106.8 million in Q2 2022 (Q2 2021: £31.7m), which is a 55% increase on the £68.8 million reported in the first quarter. The UK, Europe, Brazil and MET continued their strong revenue recoveries into Q2, whilst the reopening of countries across Asia and ANZ have driven much improved financial performances in these markets.
Travelex produced positive underlying EBITDA in Q2 2022 of £8.4 million, the first EBITDA positive quarter since 2019, £27 million favourable to Q2 2021 and just £2.3 million lower than 2019 despite the lower revenue. First half EBITDA was £1.7 million, which was £40.8 million favourable to 2021 and only £3.8 million lower than 2019.
The improved revenue performance has been driven by a rapid return of revenues since the start of 2022 as the impact of the Covid-19 pandemic has dissipated and travel restrictions have been lifted across most major markets. Despite significantly less costs than 2019, the focus continues on ensuring cost reinvestment is linked to revenue recovery but the well-publicised challenge of recruiting staff, which is impacting businesses globally, have also led to some delay on the reintroduction of staff costs in key markets, which has helped increase Travelex’s EBITDA.
Richard Wazacz has been appointed as Chief Executive Officer of Travelex and Executive Director on the Travelex Board, succeeding Donald Muir who transitioned to the role of Non-Executive Director on the Travelex Board and James Wescott has stepped down from his board responsibilities. All changes are with effect from 28 June 2022.
No further taps are planned for 2022 after the £70 million additional New Money Notes that were issued in the first half of 2022. Proceeds were deployed directly across the business to fund working capital needs for the rapid return of international travel and recovery in revenues, particularly in Q2.
Richard Wazacz, Travelex CEO, said:
“We are delighted to be back on a firm financial footing, and our positive Q2 results are testament to the hard work of every member of the Travelex team – all of whom have helped drive the company forward through challenging conditions in recent times.
“With travel returning and Travelex creating more than 1,200 jobs worldwide, coupled with the development of new digital solutions, we are both optimistic for the future of the business and hugely excited to serve our customers in new ways.”