CAB Payments Cuts 2023 Revenue Views Amid Uncertainties Over Africa Payment Flows

By Michael Susin

CAB Payments Holdings warned that revenue for the full year will come below expectations amid increasing uncertainties regarding its key currency corridors in Africa.

The London-listed fintech group on Tuesday said that it currently expects 2023 revenue to be at least 20% ahead of the prior year figure of 109.4 million pounds ($134 million). This represents a 17% fall from its previous guidance, it added.

The company said that the lowered guidance is mainly driven by a number of changes to the market conditions in some of its key currency corridors, added to the continuing uncertainties surrounding the Nigerian Naira and its impact in both volumes and margins, particularly on the Central African franc and West African franc.

Currency corridors are the set of payment flows between one country and another.

"These challenges are recent but continuing, and coincide with the traditionally strong fourth quarter for both of these corridors; it is unclear when and to what extent conditions in these markets may improve," it said.

CAB Payments will be seeking opportunities to lessen the impact on group profitability in 2023 through cost reduction measures and efficiencies, the company said.

"Therefore, the company anticipates that the majority of any revenue impact will flow through to the bottom line," it added.

Write to Michael Susin at michael.susin@wsj.com

(END) Dow Jones Newswires

October 24, 2023 03:17 ET (07:17 GMT)

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