Intermex Expands into New Territories amidst Decreased Growth in Q1 2024 Mexico
Intermex, the LatAm-focused remittances player, has announced its Q2 2024 results, showcasing a shift in customer behaviour and a strong liquidity position despite industry headwinds.
The integration of La Nacional, another remittances player, in the previous year resulted in a fourfold increase in Intermex's EBITDA, boosting its Q1 2024 adjusted EBITDA margin to 16.9%. However, the company's Q2 2024 revenue expectation is approximately $161.1 million, reflecting a 6.1% year-over-year decline. The adjusted EBITDA for the quarter is projected to be about $28.8 million, marking a 7.4% year-over-year decrease.
Transaction volumes declined 7.8% year-over-year to 14.1 million transactions, but the average principal per transaction increased by 5.0% to $441, indicating a shift towards customers sending larger amounts per transaction. Net income for Q2 2024 was $11.0 million with a diluted EPS of $0.37, also down from the previous year.
Despite the decline, Intermex's liquidity remained strong during this period, with $174.7 million in cash and cash equivalents. The company expects its FY 2024 adjusted EBITDA to be $124-127.7 million and its adjusted EBITDA margin to be around 18.2%.
Intermex's FY 2024 revenue is anticipated to rise by 3-7% to $681-701.8 million. Notably, the company achieved revenue highs in ten countries, although specific details for Q2 2024 were not provided. Digital revenues for Intermex rose by 59.1% in Q1 2024, underscoring the growing importance of digital remittances.
The Q2 2024 revenue expectations range from $171.5 million to $176.8 million, representing a 1.4-2.5% increase. The projected adjusted EBITDA for the quarter is between $31.7 million and $32.7 million, while the anticipated EBITDA margin for Q2 2024 is 18.5%.
These Q2 2024 results set the stage for Intermex’s ongoing performance before its 2025 acquisition by Western Union. The company's mixed performance trends, with top-line softness but some offset from higher average transaction amounts, highlight the challenges and opportunities in the remittances industry.
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