Finablr : Travelex and Covid-19 update

Regulatory Story
Go to market news section
Finablr PLC - FIN Travelex and Covid-19 update Released 09:24 02-Mar-2020

RNS Number : 6508E

Finablr PLC

02 March 2020

March 2nd, 2020

Finablr PLC (the 'Company')

Finablr PLC, the global platform for payments and foreign exchange solutions, today updates the market regarding the impact of the cyber-attack on Travelex and of its initial assessment of the impact of Covid-19.

Finablr network brand Travelex issued the following statement to the market today:

Travelex announcement

Statement regarding Q1 impact of cyber-attack and Covid-19

Following the cyber-attack that affected its business from 31 December 2019, Travelex announces that it has successfully restored all its customer-facing systems in a phased and controlled programme.

The decision to immediately take the Travelex systems offline at the time of the attack contained the spread of the malware and protected the integrity of customer and partner data. The Business Continuity Plan was initiated promptly, as a result of which the majority of the business remained operational and was able to continue trading in spite of the precautionary shutdown.

Certain financial reporting tools were unavailable for part of January, as a result of which the publication of Travelex's FY19 results is now expected to be from mid-April.

Covid-19

The outbreak of Covid-19 is an incremental negative for Travelex's business given broad exposure to airports and travel flows. VAT and related services will also be negatively impacted. While China and other Asian in-country revenue account for approximately 10% of Travelex revenues, other markets closely linked to Asian outbound travel are also experiencing headwinds.

Estimated Q1 financial impact

As a result of the above factors, based on current information, Travelex estimates that there will be a reduction of Underlying EBITDA in Q1 2020 compared to the equivalent period of 2019 of approximately £25 million on a like-for-like basis, mostly attributable to the malware. Travelex has a cyber-insurance policy in place which we currently expect to off-set a material proportion of this EBITDA reduction in addition to covering the direct costs of recovery. However, the timing of EBITDA recognition and receipt of the insurance recovery is yet to be determined.

At present, Travelex does not expect the cyber-attack to have any material impact on trading during our peak periods in Q2 and Q3 2020 which contribute a large proportion of Travelex's annual EBITDA. Travelex's current expectation is that the results for the FY20 would reflect the benefit of the cyber-insurance policy and cost actions taken by the business.

The extent of Covid-19 and the period for which it continues cannot be predicted at this time. Whilst there are current indications of sharp declines in air passenger numbers, the impact on global travel during the remainder of 2020 and on Travelex full year performance is uncertain.

Group impact

While the impact of the Covid-19 Coronavirus is at present observable mainly in the Consumer Foreign Exchange segment, of which a majority is carried out by Travelex, the situation is developing rapidly around the world and could have knock-on effects on processed volumes in other segments. The Company's Cross-border Payments segment could be impacted, for example, as a material portion of the business happens at physical locations. We will continue to monitor the situation closely and provide updates to the markets as appropriate.

ENQUIRIES

Finablr

Ryan Ayache, Head of Investor Relations [phone]

Faiz Akbar Habib, Head of Group Communications [phone]

Brunswick Group

Gill Ackers, Diana Vaughton [phone]

About Finablr

Finablr (LON: FIN) is a global platform for Payments and Foreign Exchange solutions underpinned by modern proprietary technology. With deep regulatory know-how, a relentless focus on innovation and leading industry partnerships, Finablr's group companies provide a broad array of tailored and trusted financial solutions for consumers and businesses across a wide network of digital channels, payments platforms and retail stores.

Finablr is present across the entire payments and foreign exchange value chain, from origination to processing to last-mile distribution. An integrated platform is at the heart of group's proposition, supporting an omni-channel strategy underpinned by best-in-class operating capabilities and connectivity to global payment networks. Driven by technology, the platform combines flexibility with significant economies of scale, making Finablr a partner of choice for leading global banks, financial institutions, retailers, mobile wallet providers and payment & technology companies.

Through its category renowned brands, including UAE Exchange, Travelex, Xpress Money, Unimoni, Remit2India, BayanPay and Ditto, Finablr processed over 150 million transactions in 2018, managing nearly USD 115 billion in volume for its customers. The group's global reach spans over 170 countries with relationships with more than 100 regulators.

For more information, visit the Finablr website:www.finablr.com

CAUTIONARY STATEMENT

This announcement may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as 'believe', 'expects', 'may', 'will', 'could', 'should', 'shall', 'risk', 'intends', 'estimates', 'aims', 'plans', 'predicts', 'continues', 'assumes', 'positioned' or 'anticipates' or the negative thereof, other variations thereon or comparable terminology. These forward-looking statements include all matters that are not historical facts.

These forward-looking statements and other statements contained in this document regarding matters that are not historical facts involve predictions. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Finablr group (the 'Group'). Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements. Important factors that could cause the Group's actual results to so vary include, but are not limited to: global and regional economic, social and political changes; fluctuations in foreign exchange rates; rapid technological changes in the financial services market; actions taken by the Group's competitors, such as consolidation of key competitors; the loss of a trademark or diminution in the perceived quality associated with the Group's brands; new or existing legal, regulatory and licensing requirements, including anti-money laundering, sanctions and anti-bribery laws; status of operations of the Group's computer and communication systems, including the its proprietary processing platforms, as well as third-party systems; and actions of the Group's agents and third-party partners and service providers.

Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

UPDJTMPTMTBMMBM

Close

London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.

©2014London Stock Exchange plc. All rights reserved

Travelex and Covid-19 update - RNS