Travelex warns of heavy EBITDA reduction in Q1 2020 due to cyber-attack and Covid-19

Maria Nikolova

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.

Finablr’s brand Travelex has earlier today published estimates of the impact that the recent cyber incident and the novel coronavirus will have on its financial performance in the first quarter of 2020.

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

Given that certain financial reporting tools were unavailable for part of January, the publication of Travelex’s FY19 results is now expected to be from mid-April.

The outbreak of Covid-19 is an incremental negative for Travelex’s business given broad exposure to airports and travel flows, the company said. 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.

As a result of the above-mentioned factors, Travelex estimates that there will be a reduction of Underlying EBITDA in Q1 2020 compared to the equivalent period a year earlier of approximately £25 million on a like-for-like basis, mostly attributable to the malware. Travelex has a cyber-insurance policy in place which Travelex currently expects to offset 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 its peak periods in the second quarter and third quarter of 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.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading


DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.