Travelex reports a 160% rise in its Q3 2022 revenues as travel restrictions ease

New Travelex Group has released its financial results for the third quarter of 2022. The financials showed that the company’s revenues had increased by 160% year-over-year to £129.6 million.

Travelex’s Q3 2022 revenues rise by 160%

Travelex’s financial results for the third quarter show that the company realized revenues of £129.6 million. The figure was a 160% increase compared to the financial results released for 2021. However, the revenues had dropped by 17% compared to 2019.

Travelex also reported year-to-date revenues of £305.1 million by the end of September 2022. This was higher than the £108.9 million reported in 2021. However, it was lower than the £405.7 million reported in 2019.

In a statement about these financial results, Travelex said that the increase in revenues was attributed to the first peak summer travel period since the pandemic broke out, as most countries have done away with travel restrictions.

The company said, “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 also added that the markets that had surpassed the 2019 levels and were at almost full recovery were Brazil and ME&T. Conversely, ANZ, Europe, and the UK markets recorded a better performance compared to the second quarter. These markets benefited from an influx in demand.

The markets that were still struggling were China and Hong Kong. These countries had continued to enforce stringent travel restrictions, which had resulted in poor recovery.

Besides reporting a rise in revenues during the third quarter, the company also reported a rise in costs. The company ended the third quarter with total costs of £112.3 million. This was twice the £56.9 million reported in 2021. However, it remained lower than the £134.8 million reported in 2019.

The company’s EBITDA during the third quarter also came in at £17.2 million. This made it the second consecutive quarter that the company had reported a positive EBITDA. In Q3 2021, the company reported a negative EBITDA of £7.1 million, but the figure was positive at £20.4 million in 2019.

Travelex restructuring

Travelex restructured its operations in August 2020 after operations were affected by the effects of the COVID-19 pandemic and the restrictions that were imposed thereafter. The company reported $84 million in new funding from the group’s secured notes. The holders of these secured notes acquired the restructured Travelex business after this new funding.

This year, Travelex also made a significant change to its leadership. The company hired Mark Freedman as the new Chief Financial Officer. Freedman has more than 28 years of experience.

Travelex is expected to report an EBITDA of between £25 million and £27 million by the end of 2022. The company expects the EBITDA to increase to between £60 million and £70 million in 2023 as travel activities continue to recover globally as more restrictions are lifted.