Wise (LON: WISE) today (Tuesday) published its unaudited interim results for the six months ending September 30, revealing an income boost of 280 percent to £194.3 million. The company's adjusted EBITDA showed an uptick of 163 percent to £241.1 million, with the adjusted EBITDA margin improving to 36.7 percent from 22 percent.

Profits on a Solid Revenue Basis

In the period from April to September, the London-listed fintech generated profits on revenue, which saw an improvement of 25 percent to £498.2 million. According to Finance Magnates, the revenue was divided into £258.7 million and £240 million in the two consecutive quarters. Following an increase of 848 percent in interest income to £157.8 million, Wise reported an income of £656 million, a jump of 58 percent. The gross profit also grew 86 percent to £488.9 million,, and the gross margin escalated to 74.5 percent from 63 percent.

Reflecting on this financial performance, Harsh Sinha, the Chief Technology Officer and Interim CEO at Wise, commented: "In the first six months of this year, we continued to make progress against our mission of building the best way to move and manage the world's money."

"We continued to invest in making our account features available to more people and businesses, and we made great progress in building the network for the world's money – having completed our integration into NPP and announcing our collaboration with Swift. This has driven our growth and the fundamentals of our financial performance."

Bullish Outlook

With the latest figures, Wise changed its annual outlook with more bullish figures. The company now expects an annual income growth of between 33 and 38 percent, compared to the previous estimation of 28 to 33 percent. It is further expecting an income growth at over 20 percent CAGR in the medium term and has continued to target an adjusted EBITDA margin at or above 20 percent.

"However, our adjusted EBITDA margin will be considerably higher than this in FY24 given the higher interest rates and the reality that we are unable to return interest to customers at the level we would like," the company stated.