The Wise logo is displayed on the smartphone screen.
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Shares in UK money transfer company Sensible Shares fell on Thursday after the company forecast weak annual revenue growth for the current fiscal year.
The company’s shares were down 9.8% at 1:30 pm London time, after falling nearly 21% earlier in the session.
The consumer payments company, which allows customers to send money or spend money overseas more cheaply, said it expects revenue to rise 15-20% annually for the full year ending in March 2025.
That was below the 31% underlying revenue growth of 1.2 billion pounds ($1.53 billion) Wise reported on Thursday in results for the year ended March 31.
Base revenue is net of benefits paid on customer balances or net interest income above the first 1% gross margin.
Wise said that the full-year basic pre-tax profit was 242 million pounds, an annual increase of 226%, of which pre-tax profits have been included in costs and reinvestment. Wise’s pre-tax margin is 21%, the company said.
price reduction
The weak revenue growth forecast is the result of price cuts implemented by Wise at the beginning of the fiscal year.
Jefferies analysts said in a note released on Thursday that the guidance announced by Wise was “disappointing at first glance” given the price cuts.
Jefferies analysts said Wise’s forecast for total revenue growth is 15-20%, which is 2% lower than the market average forecast. They added that they believed Wise’s price cuts “increased confidence in medium-term growth”.
Wise said it had 12.8 million active customers as of this fiscal year, an increase of 29% year-over-year. The company handled cross-border transactions worth £118.5 billion, an increase of 13% year-on-year.
Wise said an increasing number of customers were using their own accounts to store cash, and the company now has £16bn of customer deposits in Cash and Assets, the company’s investment account.
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