Intermex Expands into New Territories Amidst Sluggish Growth in Q1 2024 Mexico
Intermex, a leading player in the LatAm remittances market, has reported a robust performance in Q1 2024, with revenues reaching $150.4 million, marking a 3.5% increase. The company's adjusted EBITDA for the quarter stood at $25.4 million, a 5.5% increase from the previous year.
The integration of La Nacional, another LatAm-focused remittances player, acquired in April 2023, resulted in a fourfold increase in Intermex's EBITDA. This strategic acquisition has contributed to Intermex's growth, positioning the company for further expansion.
Digital revenues for Intermex soared by 59.1% in Q1 2024, underscoring the company's focus on accelerating digital engagement, especially targeting high-growth remittance corridors in Latin America.
Looking ahead, Intermex expects an adjusted EBITDA of $31.7-32.7 million for Q2 2024, translating to an EBITDA margin of 18.5%. For the full year 2024, the company projects an adjusted EBITDA of $124-127.7 million, giving an EBITDA margin of around 18.2%. This projected margin remains consistent with the margin reported in Q1 2024.
Intermex anticipates a 1.4-2.5% increase in revenues for Q2 2024, ranging from $171.5 million to $176.8 million. For the full year 2024, the company expects revenues to rise by 3-7% to $681-701.8 million.
The company's strategy for expansion outside its core markets focuses on growing its retail footprint, particularly in North America, and accelerating digital engagement. This includes leveraging its established network of 100,000 agents and company-operated stores and expanding digital services to broaden customer reach beyond traditional physical locations.
Intermex's strategic approach culminated in a significant milestone in mid-2025, with Western Union's $500 million acquisition of the company. This deal enhances Western Union's presence in North America and Latin America remittance corridors, including key markets such as Mexico, Guatemala, El Salvador, Honduras, and the Caribbean. The acquisition is expected to generate $30 million in annual cost synergies and immediately accrete earnings per share (EPS) by over $0.10.
This deal boosts Western Union's hybrid retail and digital model, strengthens its market share in the $1.2 trillion remittance market, and accelerates digital customer acquisition from Intermex's 6 million customers. Intermex achieved revenue highs in ten countries, although specific country revenue highs were not disclosed in the current report.
[1] Source: Intermex Press Release, Q1 2024 Earnings Report [2] Source: Western Union Press Release, Acquisition of Intermex Announcement [3] Source: Intermex Investor Presentation, Q1 2024 Results [4] Source: Intermex Q1 2024 Earnings Call Transcript [5] Source: Intermex Annual Report 2023, Strategic Alternatives Discussion
Intermex's strategic acquisition of La Nacional, another LatAm-focused remittances player, significantly boosted the company's EBITDA, indicating its dedication to investing in business expansion. With the projected EBITDA margin of around 18.2% for the full year 2024, Intermex is poised for continued growth in the finance sector, particularly in the digital remittance market.
