- Wise reported a fall in first-half profit as employee costs jumped, and the fintech payments company touted slower growth in the second half of the year owing to lower prices.

'As a result of the larger than anticipated cost savings flowing through into price reductions in the first half, we continue to expect the take rate to be slightly lower in the second half and for the gross margin to be c.65-67% for FY22,' the company said.

For the six months ended 30 September 2021, pre-tax profit was £18.8 million compared with £20.0 million in the same period last year, while revenue grew by 33% to £256 million.

The take rate -- fees and commissions that companies collect on transactions -- fell by 6 basis points to 0.75%.

'This was primarily as a result of the price drops [...] however the comparison to the prior period is also impacted by route mix volatility at the onset of the pandemic where we saw more volume being moved on higher priced routes,' the company said.

'The reductions in price were enabled by reduced unit costs from more favourable terms with our banking partners and lower FX costs.'

Administrative expenses increased 56% to £152.2 million, primarily due to 'increase in employee costs and outsourced services and other administrative costs.' Story provided by