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2mo ago

Wise Q1 Cross-Border Volumes Jump 24% Despite Income Shortfall, Shares Slip Before New York Listing

Margin pressure from fee cuts alongside currency volatility has overshadowed customer gains, prompting the firm to pursue a New York primary listing

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Kristo Kaarmann, chief executive, plans to shift Wise’s primary listing from London to New York

Overview

  • Wise reported cross-border transaction volume of £41.2 billion for the three months to June 30, a 24 percent increase year-on-year, and grew its active customer base by 17 percent to 9.8 million.
  • Underlying income rose 11 percent to £362 million but fell short of the £372 million analysts had forecast.
  • The average cross-border take rate declined by 12 basis points as the company continued strategic price reductions, compressing short-term margins.
  • Shares tumbled as much as 9 percent to 1,033 pence in early trading following the earnings update and the announcement of the US listing shift.
  • Wise reaffirmed its plan to relocate its primary listing to New York to tap deeper capital markets and support long-term growth as it navigates FX headwinds.