Travelex Ends Q3 2022 with 160% YoY Revenue Rise

New Travelex Group, the restructured business of Travelex, published its financials for the third quarter of 2022, reporting revenues of £129.6 million. The figure has increased by 160 percent from 2021 but declined by 17 percent from 2019.

The year-to-date revenue at the end of September came in at £305.1 million, compared to £108.9 million in 2021 and £405.7 million in 2019.

"The positive increase in revenues were driven by the first peak summer trading period without major travel restrictions in the majority of markets in which Travelex operates," the company stated.

"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."

Along with the higher quarterly revenue, the company's costs also increased. Travelex ended the quarter with a total cost of £112.3 million, which was at £56.9 million in 2021 and £134.8 million in 2019.

The underlying EBITDA of the Group in the quarter came in at £17.2 million, thus making it the second consecutive quarter with a positive figure. In the same quarter of the previous year, the EBITDA was at a negative £7.1 million, while it was at a positive £20.4 million in 2019.

A Restructured Business

Travelex restructured its business in August 2020 following the impact on its operations from the implications of the Covid-19 pandemic on the travel industry. The holders of Travelex's secured notes, who participated in providing £84 million of new money to the group, acquired the restructured Travelex business.

Earlier this year, Travelex onboarded Mark Freedman, an industry veteran with over 28 years of experience, as the Chief Financial Officer.

The United Kingdom-headquartered company is now expecting to close 2022 with an underlying EBITDA of £25 million to £27 million, significantly higher than the previous guidance. For 2023, the group is eying at an EBITDA of between £60 million to £70 million.