Intermex Secures UK License Amidst Slowing Revenue Growth in Q2
Intermex, a leading player in the remittance market, has announced plans to expand its business into major remittance markets. The company's CEO, Bob Lisy, is looking to grow Intermex's presence in these markets, although specific reasons for this interest have not been disclosed.
In Q2 2024, Intermex reported a revenue of $171.5 million, a 1.4% year-over-year increase. The company's customer base also grew, with a 3.9% increase to 4.2 million. digital revenues surged by 67%, accounting for 34% of all transactions sent or received digitally.
The potential markets under consideration include Germany, France, and the UK. Joe Baker, a representative from Intermex, suggested these countries as potential big remittance markets. However, it is not clear if Intermex currently operates in these countries.
Intermex's Adjusted EBITDA for Q2 2024 was $31.1m, a 0.6% year-over-year growth, with a margin of 18.1%. The company's net income for the same quarter was $14m, a 9.1% decrease.
In light of these developments, Intermex has downgraded its revenue guidance for the year. The company now expects revenues to be between $657.6m and $677.6m, down from the previous expectation of $681m to $701.8m. Intermex anticipates EBITDA to be between $121.1m and $124.7m in 2024, giving a margin of around 18.4%.
It is worth noting that the largest remittance markets globally typically refer to the countries receiving the highest amounts of money sent from migrants working abroad. As of recent data, the top remittance recipient countries are India, China, Mexico, the Philippines, Egypt, Pakistan, Bangladesh, Vietnam, Nigeria, and Ukraine. These amounts are subject to change based on various factors.
For more detailed and current data, international organizations like the World Bank or the International Fund for Agricultural Development (IFAD) publish annual remittance reports.
As Intermex moves forward with its expansion plans, it will be interesting to see how the company fares in these new markets and whether it can maintain its growth trajectory.
Leveraging technology to streamline its operations, Intermex aims to capitalize on the growing business opportunities in major finance sectors of Germany, France, and the UK. With these technological advancements, the company hopes to establish a significant presence in the lucrative global remittance market.
