The publicly listed fintech payment company Equals Group plc (AIM:EQLS) announced in today’s trading update that revenue for the first half of 2024 has significantly increased. Compared to the same period last year, revenue grew by 33%. However, the company did not provide data on net income or other key financial indicators.
Equals Group reports a strong revenue increase of 33% year-over-year for the first half of 2024.
Equals reports that the total revenue for the first half of 2024 was £60 million, an increase of over 30% compared to £45 million in the same period last year. This growth was primarily driven by strong performance in the solutions and international payments sectors.
Foreign exchange income also saw a slight increase, reaching £25.24 million compared to £24.7 million reported in the first half of 2023.
The company commented in the trading update: “Foreign exchange income includes direct and white label, partly dependent on market conditions and interest rate fluctuations, leading to increased customer activity.” “After a quiet first quarter of 2024, we saw a strong rebound in the second quarter. Overall, considering macroeconomic conditions, foreign exchange income from B2C customers was lower, while B2B income was more robust.”
Equals Group Plc @meetequals #EQLS released a new regulatory news announcement. Please click the following title to view the full version: Equals Group PLC – Trading Update and Results Notification [Image]
The single-day revenue for the second quarter was £527,000, a 36% increase from £388,000 reported in the same quarter last year.
Key highlights of the trading update include:
Solutions revenue surged to £24.7 million in the first half of 2024, up from £13.6 million in the first half of 2023. International payments, as one of the foundations of exchange in the modern world, involve one party transferring legal tender or equivalent currency to another in exchange for goods or services. The payment industry has become a staple of modern commerce, although the participants and methods of exchange have changed significantly over time. In particular, the payer is the party making the payment, and the payee reflects the individual or entity receiving the payment. The most common reading this term income increased to £13 million, up from £11 million the previous year. Fee income grew strongly, especially in the solutions sector. Interest income saw a significant increase due to higher customer balances and increased interest rates from banking partners.
The company also reported that as of June 30, 2024, its cash position was stable at £20.5 million, with no debt. This figure includes a £1.9 million dividend paid to shareholders and £1.8 million in acquisition-related costs settled during this period.
Equals Group’s acquisition of Equals Money Europe (formerly Oonex USA) began contributing to revenue growth as of July 4, 2023. This European subsidiary reported that revenue for the second quarter of 2024 was €1.6 million, up from €816,000 in the second quarter of 2023.
The company plans to announce the full mid-year results for the first half of 2024 during the week of September 9, 2024. Additionally, Equals Group stated that its ongoing strategic review is still in progress, with further updates expected on July 10, 2024.
After a strong 2023, the first half of 2024
This result is consistent with the reports for the first quarter of 2024 and the full year of 2023, during which Equals’ profits doubled to £7.7 million, and total revenue reached £96 million, setting a new historical high. Therefore, it can be estimated that if profits represent 8% of revenue, then based on the current trading update data, profits would be slightly below £5 million.
Ian Strafford Taylor, CEO of Equals Group PLC, stated: “We continued our strong growth in 2023, achieving record revenue, adjusted EBITDA, and operational cash generation.” “This has enabled us to continue investing in the business and announce our first dividend.”
If Equals maintains this revenue momentum in the second half of 2024, the total annual performance may exceed the record-breaking performance of 2023.
