Finseta Sees 42% Revenue Jump as Forex Platform Gains Traction

Tuesday, 09/07/2024 | 07:20 GMT by Damian Chmiel
  • The company reported revenue up 42% to £5.1 million and adjusted EBITDA increasing 300%.
  • Growth was driven by an expanded customer base and higher average transaction values
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Finseta plc (AIM: FIN), a foreign exchange and payments solutions provider, announced financial results for the first half of 2024, with revenue soaring approximately 42% to £5.1 million compared to the same period last year.

In response to the trading update published on Tuesday morning, the company's shares opened on the London Stock Exchange with a ten percent increase, testing monthly highs.

Finseta Reports Revenue Growth in First Half of 2024

The company, which offers multi-currency accounts through a proprietary technology platform, saw its active customer base grow to 952, up from 874 in the first half of 2023. This growth, coupled with an increase in average transaction value, contributed to the significant revenue boost.

Finseta's gross margin improved to approximately 65%, up from 61% in the previous year. The company attributed this improvement to its strategic decision to phase out its white-label business. Excluding revenue from white label partners, underlying revenue growth was even stronger at 54%.

Adjusted EBITDA saw an increase of about 300% to £0.8 million, reflecting both revenue growth and the scalability of the company's platform. Cash flow generated from operations rose to £0.7 million, resulting in a healthy cash balance of £2.8 million as of June 30, 2024.

James Hickman, CEO of Finseta
James Hickman, CEO of Finseta

"This has been another excellent period of delivery for Finseta, with substantial growth in revenue and EBITDA as we continued to increase our number of customers and average transaction value,” commented James Hickman, CEO of Finseta.

Hickman also highlighted the company's progress in expanding its presence in Canada and advancing its card program. He affirmed that Finseta remains on track to deliver growth for the full year 2024, in line with the Board's expectations.

“Accordingly, and with the strong trading momentum being sustained, we remain on track to deliver significant growth for FY 2024,” Hickman added.

The company's client mix remained stable, with high-net-worth individuals accounting for 61% of revenue and corporate customers for 39%.

Finseta is scheduled to release its full interim results on September 10, 2024.

Finseta plc (AIM: FIN), a foreign exchange and payments solutions provider, announced financial results for the first half of 2024, with revenue soaring approximately 42% to £5.1 million compared to the same period last year.

In response to the trading update published on Tuesday morning, the company's shares opened on the London Stock Exchange with a ten percent increase, testing monthly highs.

Finseta Reports Revenue Growth in First Half of 2024

The company, which offers multi-currency accounts through a proprietary technology platform, saw its active customer base grow to 952, up from 874 in the first half of 2023. This growth, coupled with an increase in average transaction value, contributed to the significant revenue boost.

Finseta's gross margin improved to approximately 65%, up from 61% in the previous year. The company attributed this improvement to its strategic decision to phase out its white-label business. Excluding revenue from white label partners, underlying revenue growth was even stronger at 54%.

Adjusted EBITDA saw an increase of about 300% to £0.8 million, reflecting both revenue growth and the scalability of the company's platform. Cash flow generated from operations rose to £0.7 million, resulting in a healthy cash balance of £2.8 million as of June 30, 2024.

James Hickman, CEO of Finseta
James Hickman, CEO of Finseta

"This has been another excellent period of delivery for Finseta, with substantial growth in revenue and EBITDA as we continued to increase our number of customers and average transaction value,” commented James Hickman, CEO of Finseta.

Hickman also highlighted the company's progress in expanding its presence in Canada and advancing its card program. He affirmed that Finseta remains on track to deliver growth for the full year 2024, in line with the Board's expectations.

“Accordingly, and with the strong trading momentum being sustained, we remain on track to deliver significant growth for FY 2024,” Hickman added.

The company's client mix remained stable, with high-net-worth individuals accounting for 61% of revenue and corporate customers for 39%.

Finseta is scheduled to release its full interim results on September 10, 2024.

About the Author: Damian Chmiel
Damian Chmiel
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About the Author: Damian Chmiel
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.
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