Intermex secures UK license amidst decelerated revenue growth in Q2 24
Intermex, a leading player in the money transfer industry, recently announced its Q2 2024 results, revealing a 1.4% year-over-year (YoY) increase in revenue, reaching $171.5 million. However, the company experienced a slowdown in growth compared to previous quarters, with net income decreasing by 9.1% to $14 million.
CEO Bob Lisy addressed the challenges faced by Intermex, citing external market conditions as a primary factor affecting money transfer remittances. Despite these hurdles, the company is optimistic about its future, particularly in big remittances markets such as Germany, France, and the UK, where it aims to expand.
Intermex's digital growth remains a bright spot. Digital revenues surged by 67%, and the share of transactions sent or received digitally rose to 34%, a 11% YoY increase. The acquisition of a UK licence from a new acquisition in July 2024 is intended to bolster this digital growth.
Principal, one of Intermex's key services, saw a 3.9% YoY increase in customer numbers to 4.2 million. The company anticipates EBITDA to be between $121.1m and $124.7m, giving a margin of around 18.4%.
It's worth noting that the Asia Pacific region, particularly China and India, dominates the global remittance market. According to recent data, the digital segment of the Asia Pacific remittance market was valued at about USD 8.09 billion in 2024, with projections of reaching over USD 30.10 billion by 2032.
Intermex's acquisition of La Nacional, a rival remittances player, last year saw a threefold increase in EBITDA for La Nacional. However, specific details about the new acquisition were not disclosed in the Q2 2024 results.
The adjusted EBITDA for Q2 2024 came in just below expectation at $31.1m, representing a 0.6% growth. Intermex has downgraded its revenue guidance to $657.6m-677.6m (down from $681m-701.8m). Money transfer transactions grew 1.3% YoY to 15.3 million.
For up-to-date and detailed insights into the largest remittance markets globally, key sources to track include Market Research Future, Statista, and industry reports on digital remittance trends. These provide segmented data by region, transfer method, and end-user, allowing for precise identification of the largest markets.
[1] Market Research Future. (2022). Global Digital Remittance Market Research Report - Forecast to 2032. [2] Statista. (2023). Global remittance flow statistics. [3] World Bank. (2023). Migration and Development Brief 36: Remittances and the COVID-19 pandemic. [4] The Financial Brand. (2021). The Top 10 Digital Remittance Providers in the World.
- In the wake of Intermex's Q2 2024 results, it's evident that the company's digital growth remains a significant advantage, with digital revenues surging by 67% and the share of transactions sent or received digitally increasing by 11% YoY.
- As Intermex targets expansion in big remittances markets like Germany, France, and the UK, the company also seeks to bolster its digital growth by acquiring UK licenses in technology-driven ventures,acknowledging the relevance of technology in the evolving business landscape of finance and money transfer.
