Intermex secures a UK license amidst decelerating revenue growth in Q2 of the 24th year.
Intermex, a leading player in the international money transfer industry, recently reported its Q2 2024 results, showcasing growth in digital revenues and transaction volumes. The company anticipates an EBITDA of between $121.1m and $124.7m for the year, giving a margin of around 18.4%.
In Q2 2024, Intermex's digital revenues surged by 67%, while the share of transactions sent or received digitally reached 34%, marking an 11% year-on-year (YoY) increase. The principal sent for Intermex in Q2 2024 was $6.4bn, with customer numbers reaching 4.2 million. Money transfer transactions for the company grew to 15.3 million in the same quarter.
However, Intermex downgraded its revenue guidance for the year, expecting $657.6m-677.6m (previously $681m-701.8m). The net income for Q2 2024 was $14m, down by 9.1%, while the adjusted EBITDA was $31.1m, a 0.6% growth, with a margin of 18.1%.
As the global remittance market continues to evolve, identifying the largest markets becomes crucial. The Asia-Pacific (APAC) region holds the largest share in the global digital remittance market, accounting for about 45% of total transactions. North America, specifically the United States, leads the global digital remittance market by share, with digital platforms facilitating over $150 billion in remittance transactions annually.
The digital remittance market worldwide is anticipated to reach $320 billion by 2025, growing at a CAGR of 12%, with digital transfers comprising about 35% of all cross-border remittances. Key players operating predominantly in these markets include Western Union, MoneyGram, PayPal, Venmo, Zelle, Remitly, and others.
Intermex is targeting expansion in big remittance markets such as Germany, France, and the UK for its European business, aiming to tap into the potential growth in these regions. As the global remittance market continues to grow and digital transfers become more prevalent, companies like Intermex will be at the forefront of this transformation.
[1] "Global Remittance Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Personal, Business), By Region, And Segment Forecasts, 2020 - 2027" - Grand View Research, Inc. [3] "Asia Pacific Remittance Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Personal, Business), By Country, And Segment Forecasts, 2020 - 2027" - Grand View Research, Inc. [5] "North America Remittance Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Personal, Business), By Country, And Segment Forecasts, 2020 - 2027" - Grand View Research, Inc.
In the context of Intermex's growing presence in the international money transfer industry, the company aims to capitalize on the potential growth in European markets like Germany, France, and the UK. With technology playing a significant role in the expansion of digital remittance market, companies like Intermex are predicted to be at the helm of this transformation, contributing to the anticipated $320 billion digital remittance market size by 2025. Key players in this market, including Western Union, MoneyGram, PayPal, Venmo, Zelle, Remitly, and others, are also expected to be prominent players in this evolving landscape.
