Finance

UK fintech posts 55% jump in profit

Published

17 hours ago

November 6, 2024

Business Finance News

The Wise logo displayed on a smartphone screen.

Pavlo Gonchar | SOPA Images | LightRocket via Getty Images

Wise posted a 55% jump in profit in the first half of its 2025 fiscal year Wednesday, citing customer growth and expanding market share.

The British digital payments firm said that its first-half profit totalled £217.3 million, up from £140.6 million in the same period a year ago.

That came on the back of a 25% increase in active customers, with Wise reporting a total of 11.4 million consumer and business clients.

Revenues at the money transfer platform climbed 19% year-on-year for the period to £591.9 million, Wise reported Wednesday.

Earlier this year, Wise issued a sales warning that sent shares of the U.K. online payments firm down as much as 21%.

Back in June, Wise said it was expecting underlying year-over-year income growth of 15-20% for its fiscal 2025, much lower than the 31% growth clip it achieved in the 12 months ending in March 2024.

The softer guidance came off the back of a series of price reductions.

Last month, Wise reported a 17% increase in underlying income for the second quarter of 2024.

The firm also said it was on track to achieve an underlying profit before tax (PBT) margin of 13% to 16% in the medium term — reiterating previous guidance from June — and wouldn’t have to make “further material investments in reduced pricing” in the second half.

On Wednesday, Wise said that its underlying PBT margin for the first-half period was 22%, above its target range of 13% to 16%.

However, the firm added that investments it’s made in reducing pricing will take that margin down to a level close to that target range for the second half of its 2025 fiscal year.

Last week, Wise’s billionaire CEO and co-founder Kristo Käärmann was fined £350,000 fine by the U.K.’s Financial Conduct Authority for failing to report an issue with his tax filings.