Expanded Earnings from Intermex: The Success in Latin America Shines
Intermex, a leading player in the remittance market, reported its quarterly earnings last week, revealing consistent growth throughout 2020 and ambitious expansion plans for the future.
Despite the digital revolution sweeping across various industries, Intermex remains grounded in brick-and-mortar operations, with a significant market share of around 20% in the US to Mexico, Guatemala, Honduras, and El Salvador corridors. This strategy has proven successful, with the company processing customers quickly and most payments in real-time, resulting in an impressive 13% increase in transactions for Q3 and a 3% increase for Q2, despite the lockdown.
The President and CEO of Intermex, Robert Lisy, was interviewed to discuss growth drivers and the future of the company. Lisy emphasised that while digital transactions are a part of Intermex's operations, the company is primarily focused on remittances from the US to Central and South America. Digital transactions consist of any payment method other than cash.
Intermex does not aim to move all customers online due to the high costs of acquiring online customers and the preferences of their target market. Instead, the company is primarily focused on a network of profitable agents in key corridors, with a typical agent processing twice as many daily transactions as those serving Western Union or MoneyGram.
Intermex has a substantial amount of free cash flow to invest in future growth, which may include M&A opportunities. The company is planning to expand its operations to new geographies such as Africa and Canada, further solidifying its position as a global player in the remittance market.
Looking ahead, Intermex anticipates double-digit revenue growth for the fourth quarter of 2020. However, no specific forecast was given for the next year (2021). Despite this, the company's consistent growth and ambitious expansion plans suggest a promising future for Intermex.
In conclusion, Intermex continues to thrive in the remittance market, leveraging its brick-and-mortar strategy to maintain a strong presence in key corridors. With a focus on profitable agents and strategic expansion, Intermex is well-positioned for continued growth in the years to come.
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