Half Year 2024 Cab Payments Holdings PLC Earnings Call Transcript
Key Points
- CAB Payments Holdings PLC (CABPF) demonstrated resilience by growing volumes by 4% despite a 10% decline in the global cross-border payments market.
- The company onboarded 35 new clients, increasing its active client book to 526.
- CAB Payments Holdings PLC (CABPF) is expanding its geographical reach, including plans to enter the US market and strengthen its presence in Europe through its Dutch DNB regulated subsidiary.
- The company has formed a global partnership with Visa to enhance its payment capabilities, particularly in high-volume payment solutions.
- The leadership team has been strengthened with significant hires, including a new CEO, CFO, and other key positions, to drive the company's strategic initiatives.
- Gross income fell by 22%, primarily due to the elevated income from Naira trading in the prior year and central bank interventions in key African currencies.
- Adjusted EBITDA decreased by 53% to GBP18.7 million, reflecting lower revenue and higher costs.
- Operating free cash flow fell by 75% to GBP9.4 million, impacted by lower EBITDA and higher CapEx.
- The company's corridor concentration remains a concern, although it has improved from 49% to 32% year-on-year.
- The take rates in emerging markets have contracted significantly, particularly due to the dislocation in Naira trades, impacting overall profitability.
Good morning, everyone, and welcome to our first half 2024 results and presentation. For many of you, this is your first time at our new offices. So happy to have you here. I'm joined here today by our new CEO, Neeraj Kapur; and CFO, Richard Hallett.
Neeraj will start off by giving a strategic update on the business as a new CEO, and Richard will summarize the financial performance in the first half of the year. (Operator Instructions) With that said, I'll hand it over to Neeraj.
Good morning, everyone. Thanks, Gora, for a lovely introduction there. This is my first results presentation as CEO of CAB Payments and Crown Agents Bank. I've met some of you before, but not all of you. And so welcome to all of you, and I look forward to seeing you, meeting you more as time goes on.
But before we start, let me just say on a personal level that I am very excited to be here. This is truly a unique business with a differentiated business model, sitting within vast markets. I would add
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