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Equals Group H1 Revenue Hits £60 Million, Up 33% Year-on-Year

Wednesday, 03/07/2024 | 06:36 GMT by Damian Chmiel

  • Strong performance in the Solutions and International Payments segments drives results.
  • Growth was also reported in the FX segment, where revenues exceeded £25 million.

Equals Money

Equals Group plc (AIM: EQLS), a publicly listed fintech payments company, announced a visible revenue jump for the first half of 2024 in a trading update released today (Wednesday). Revenue rose 33% compared to the same period last year. However, the company did not provide data on net income or other important financial metrics.

Equals Group Reports Strong H1 2024 Revenue Growth, Up 33% Year-on-Year

Equals reported total revenues of £60.0 million for H1 2024, an increase of more than 30% compared to £45.0 million in the same period last year. This growth was driven primarily by strong performance in the Solutions and International Payments segments.

FX revenues also modestly increased, amounting to £25.24 million compared to £24.7 million reported in H1 2023.

“FX revenues, which incorporate both direct and white-label, are partly reliant on market conditions and volatility in rates leading to increased customer activity,” the company commented in the trading update. “After a quiet Q1-2024, we saw a strong pick up in Q2-2024. Overall, FX revenues from B2C customers are subdued given macro-economic conditions whereas B2B revenues are more robust.”

— Research Tree (@research_tree) July 3, 2024

Revenue per single day in the second quarter was £527,000, up 36% from £388,000 reported in Q2 of the previous year.

Key highlights from the trading update include:

  • Solutions revenue surged to £24.7 million in H1 2024, up from £13.6 million in H1 2023
  • International Payments revenue increased to £13.0 million, compared to £11.0 million in the prior year period
  • Fee-based revenues showed strong growth, particularly in the Solutions segment
  • Interest income saw significant growth due to increased customer balances and improved rates from banking partners

Source: Equals

Source: Equals

The company also reported a solid cash position of £20.5 million as of June 30, 2024, with no debt. This figure accounts for a £1.9 million dividend payment to shareholders and £1.8 million in acquisition-related costs settled during the period.

Equals Group’s acquisition of Equals Money Europe (formerly Oonex S.A.) on July 4, 2023, has begun to contribute to revenue growth. The European subsidiary reported revenue of €1.6 million in Q2 2024, up from €816,000 in Q2 2023 on a like-for-like basis.

The company plans to release its full interim results for H1 2024 in the week of September 9, 2024. Additionally, Equals Group stated that its ongoing strategic review remains in progress, with a further update expected on July 10, 2024.

Strong H1 2024 after Strong 2023

The results align with those reported for Q1 2024 and the entire year of 2023, during which Equals’ profits doubled, reaching £7.7 million with total record revenues of £96 million. It could, therefore, be estimated that if profit constituted 8% of revenues, then based on the currently provided numbers from the trading update, it would be at just under £5 million.

“We continued to grow strongly in 2023, achieving record levels of revenue, Adjusted EBITDA, and operational cash generation,” Ian Strafford-Taylor, the CEO of Equals Group PLC, said. “This allowed us to continue to invest in the business and declare a maiden dividend.”

If Equals maintains this revenue momentum in H2 2024, the total annual result could be higher than the record-setting 2023.

Equals Group plc (AIM: EQLS), a publicly listed fintech payments company, announced a visible revenue jump for the first half of 2024 in a trading update released today (Wednesday). Revenue rose 33% compared to the same period last year. However, the company did not provide data on net income or other important financial metrics.

Equals Group Reports Strong H1 2024 Revenue Growth, Up 33% Year-on-Year

Equals reported total revenues of £60.0 million for H1 2024, an increase of more than 30% compared to £45.0 million in the same period last year. This growth was driven primarily by strong performance in the Solutions and International Payments segments.

FX revenues also modestly increased, amounting to £25.24 million compared to £24.7 million reported in H1 2023.

“FX revenues, which incorporate both direct and white-label, are partly reliant on market conditions and volatility in rates leading to increased customer activity,” the company commented in the trading update. “After a quiet Q1-2024, we saw a strong pick up in Q2-2024. Overall, FX revenues from B2C customers are subdued given macro-economic conditions whereas B2B revenues are more robust.”

— Research Tree (@research_tree) July 3, 2024

Revenue per single day in the second quarter was £527,000, up 36% from £388,000 reported in Q2 of the previous year.

Key highlights from the trading update include:

  • Solutions revenue surged to £24.7 million in H1 2024, up from £13.6 million in H1 2023
  • International Payments revenue increased to £13.0 million, compared to £11.0 million in the prior year period
  • Fee-based revenues showed strong growth, particularly in the Solutions segment
  • Interest income saw significant growth due to increased customer balances and improved rates from banking partners

Source: Equals

Source: Equals

The company also reported a solid cash position of £20.5 million as of June 30, 2024, with no debt. This figure accounts for a £1.9 million dividend payment to shareholders and £1.8 million in acquisition-related costs settled during the period.

Equals Group’s acquisition of Equals Money Europe (formerly Oonex S.A.) on July 4, 2023, has begun to contribute to revenue growth. The European subsidiary reported revenue of €1.6 million in Q2 2024, up from €816,000 in Q2 2023 on a like-for-like basis.

The company plans to release its full interim results for H1 2024 in the week of September 9, 2024. Additionally, Equals Group stated that its ongoing strategic review remains in progress, with a further update expected on July 10, 2024.

Strong H1 2024 after Strong 2023

The results align with those reported for Q1 2024 and the entire year of 2023, during which Equals’ profits doubled, reaching £7.7 million with total record revenues of £96 million. It could, therefore, be estimated that if profit constituted 8% of revenues, then based on the currently provided numbers from the trading update, it would be at just under £5 million.

“We continued to grow strongly in 2023, achieving record levels of revenue, Adjusted EBITDA, and operational cash generation,” Ian Strafford-Taylor, the CEO of Equals Group PLC, said. “This allowed us to continue to invest in the business and declare a maiden dividend.”

If Equals maintains this revenue momentum in H2 2024, the total annual result could be higher than the record-setting 2023.

Damian Chmiel

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Damian’s adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.

  • 1560 Articles
  • 35 Followers

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