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Western Union rival TransferWise says it will record its second year of profit

  • The money transfer firm recorded its first profit in the year ended March 31, 2017 and said it expects to do the same this year.
  • "We're managing to be a sustainable business. So I'd expect us to be profitable," CFO Matt Briers told CNBC.

TransferWise will book another year of profit in its latest fiscal year, the online money transfer start-up's financial chief told CNBC on Tuesday.

The London-based firm reported revenues of £67 million ($94 million) in the year ended March 31, 2017, more than double the previous year. It made an adjusted operating profit of £2 million, its first profitable year.

Speaking to CNBC at the Goldman Sachs Disruptive Technology Symposium in London, Matt Briers, chief financial officer at Transferwise, said the company would achieve another profit in the year ended March 31, 2018.

"We're managing to be a sustainable business. So I'd expect us to be profitable," Briers said.

"We've been profitable for the last year. We're very much focused on just driving growth as a business. It's all about growing, but growing in a sustainable manner. We're not managing to a margin, but rather making sure that we have this sustainable business which benefits everybody."

Briers did not disclose the profit that TransferWise expects this fiscal year, but did say that revenues will see "similar growth" to what it has recorded before. In its 2017 fiscal year, revenues more than doubled.

TransferWise is one of Europe's biggest technology companies, reportedly valued at around $1.6 billion. Its core product allows people to transfer money across the world in different currencies, but without incurring the high fees charged by traditional banks and companies like Western Union.

But it has tried to branch out beyond that. It recently launched a product known as "borderless account," which lets a user hold money in multiple currencies. It could be useful if a business is getting paid in different currencies or a person goes to work abroad, for example. It would allow them to convert between different currencies at a cheaper cost than at a traditional bank.

Incumbents are fighting back, however. Western Union has been investing heavily in its digital money transfer business, which continues to grow.