Wise, the UK-based payments firm, reported a significant 55% increase in first-half profit to £217.3 million, alongside a 19% revenue increase. The growth was fueled by a 25% boost in active users, with 11.4 million customers globally. The company’s stock surged after forming a strategic partnership with Standard Chartered. Wise’s profitability exceeded expectations, but a forecasted profit margin reduction is anticipated due to pricing adjustments intended to enhance competitiveness. Despite setbacks earlier this year from a sales warning, Wise has achieved strong financial resilience.
Key Points:
- Revenue and Profit Growth: A robust profit increase alongside a 19% revenue boost, driven by user growth.
- Active Customer Surge: A 25% increase in users underscores Wise’s expanding market presence.
- Stock Performance: Shares rose sharply, bolstered by Wise’s new cross-border payment partnership with Standard Chartered.
- Profit Margin Adjustments: Despite exceeding margin targets in the first half, margins are expected to normalize due to pricing strategies.
- Executive Challenges: Wise’s CEO, Kristo Käärmann, recently faced an FCA fine, yet the company’s financial position remains strong.
