Travelex registers steep rise in revenues in Q3 2022
Travelex has posted its financial results for the third quarter of 2022, with revenues fuelled by a peak summer trading period.
In Q3 2022, the New Travelex Group continued the strong performance seen so far in 2022 and generated revenues of £129.6 million, £79.7 million higher than 2021 and 83% of 2019. YTD revenues of £305.1 million were £196.2 million favourable to 2021.
The Group produced an underlying EBITDA of £17.2 million in Q3, continuing the trend of a return to positive underlying EBITDA from Q2. Q3 was £24.3 million favourable to 2021 and only £3.1 million behind 2019 despite the lower revenue. YTD underlying EBITDA is £18.9 million after nine months of 2022.
The positive increase in revenues was driven by the first peak summer trading period without major travel restrictions in the majority of markets in which Travelex operates. Brazil and ME&T both exceeded 2019 levels with recovery fully complete in these markets. UK, Europe and ANZ continued to improve on the Q2 performance as they benefitted from the significant pent up demand for travel. China and Hong Kong remained challenged as they continued with restrictions.
Costs remain below 2019, driven by both rent and staff cost. Recruitment continues to remain a focus for the group to ensure the business has resources to support the continuining recovery in revenues and growth.
Looking forward to 2023, the New Travelex Group is expecting an underlying EBITDA of between £60m to £70m, representing strong growth on 2022 for the business. Although this is lower than the previous 2023 guidance provided in September 2021, that guidance was indicative only at a key point of uncertainty during the Covid pandemic and assumed full recovery across all markets by 2023.
The new guidance recognises delays in recovery in some key Asian markets, inflationary pressure on the cost base, the impact of the cost of living crisis on revenues, and material investment in value generating initiatives in the business, and leaves the Group in a good position to continue to grow and remain the most recognised, respected and reliable brand in international money for our customers and partners.