INTERNATIONAL. Travelex International Group today announced full-year results for the year ended 31 December 2023, with revenues climbing +24% year-on-year (+26% on a constant currency basis) to £534.2 million.
The global travel money services business reported underlying EBITDA of £58.8 million, up by +156% on 2022. The financial performance was lifted by recovery in passenger traffic, which reached around 87% of historical levels at the airports where the group operates.
Travelex said it is well placed to deliver further growth, supported by several structural tailwinds, notably:
- The continued increase in international travel which is set to overtake pre-Covid-19 levels by 2025, reaching 1.25 billion outbound international trips compared to 1.15 billion in 2019.
- The growth in the travel cash market, which is anticipated by the Group to grow at an average of +14% per annum between 2022-2028 with rising spend per visitor
- The long-term global demand for physical currency, which remains a popular choice for travellers, according to the group.
Travelex said it is increasing its focus on the Travelex Money Card (TMC) and app, where there is opportunity to increase its share of the overall travel money market by being “a one-stop-shop for cash and card”. In 2023, Travelex said it was successful in cross-selling the TMC to its walk-up customer base, providing a secure and convenient option for customers to spend with multiple currencies.
The company added: “There is also potential to expand both the retail cash and outsourcing offerings into new countries, leveraging Travelex’s international footprint in key travel corridors. Furthermore, there is strong momentum in the wholesale banknote trading business as Travelex continues to win share in markets that are expanding, for example in Asia and the Middle East.”
As a result, the group is forecasting underlying EBITDA between £65 million and £75 million in 2024.
Annual highlights
The retail and outsourcing business which operates in over 20 countries with around 1,550 sites has rebounded strongly, said Travelex, as the travel industry continued to recover in 2023. This was particularly the case in the Asia Pacific region, with +44% EBITDA growth since 2022.
The group added more than 65 new stores in 2023 and over 1,700 new colleagues to Travelex since 2022. Key airport wins include the Non-Schengen terminal at Munich Airport, giving Travelex 90% coverage of airport volumes in Germany, and a contract extension at Zurich Airport.
The Group also continued to expand its off-airport store network, notably at London Paddington Station, and post period end at Westfield London in White City, further targeting the pre-trip market. Additional store expansions are planned in 2024 in key markets across the globe.
Travelex increased its card and app customer base by over 200,000 in 2023, demonstrating +70% year-on-year growth, including the launch of the TMC in Japan.
The wholesale business has continued to grow in 2023 particularly in the UK, Africa and Asia with +21% EBITDA growth since 2022.
Travelex CEO Richard Wazacz said: “Over the last three years, Travelex has transformed into a stronger, more diversified business than ever before, whether through our own unrivalled branded store network, white-labelled offering in partners’ sites, or wholesale cash distribution. All of this has helped us to outperform in a strongly recovering travel market in 2023.
“Cash is still used by over 70% of travellers and demand for travel money is forecast to increase significantly over the medium term. We are ideally placed to take advantage of this growth thanks to our unique offering that combines the best of both cash and cards, in-store and online.
“Looking forward, global travel volumes are accelerating at pace thanks to strong demand from consumers making up for lost time post-Covid. To capitalise on this we have clear plans to grow our base of customers, open new sites, and move into new geographies. All of this gives us confidence that we will deliver another successful year of profitable growth.” ✈
