By Adam Whittaker
CAB Payments Holdings' pretax profit and gross income fell as global demand for foreign-exchange services dropped and the tailwinds that drove last year's performance fade, but the company confirmed its full-year guidance.
The fintech group on Wednesday posted pretax profit for the six months ended June 30 of 13.7 million pounds ($18 million), down 43% from the same period a year prior.
Gross income fell to 55.7 million pounds from 71.8 million pounds, while adjusted earnings before interest, taxes, depreciation and amortization fell to 18.7 million pounds, down from 40.0 million pounds, due to lower revenue and higher operating expenses, the company said.
The company estimates that there has been a 10% year-on-year drop in global cross-border flows and an around 5% drop in flows into Africa due to the strong dollar and global political volatility. However, it expects demand for foreign-exchange flows and payments to grow over the long-term.
It also said it continued to see reduced revenue following central bank interventions in some of its core markets, in particular for the Central African franc and West African franc. As a result, the company said that 2024 is the first year since 2020 in which it doesn't expect to benefit from any significant corridor-related tailwinds, which is evident in its first-half performance.
It confirmed its full-year guidance of marginally lower gross income compared to last year, which was 137.1 million pounds. It also said it was renewing its focus on strategic execution of its medium-term strategy, and seeks to strengthen its network, deepen client relationships, leverage the banking license to accelerate volume growth and drive growth via technology investments.
CAB Payments also said that Independent Nonexecutive Director Mario Shiliashki has resigned from the board and that the search for a replacement is underway.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
September 04, 2024 03:04 ET (07:04 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.