Worldline: Q3 2024 revenue
Q3 2024 revenue
€ 1,163 million Group revenue, down 1.1%
organically
Underlying growth on Worldline core
activities remains positive
Mid-single digit organic growth in our core Merchant
Services activities
Growth in Financial Services excluding large one-off
re-insourcing
Continued acceleration in Mobility & Transactional
Services
Streamlined Group profile
Leaner organization fueled by Power24
Cost base ready for Free Cash Flow generation
acceleration
Ongoing execution to rebound and refocus
Worldline
Merchant Services new leadership
Management actions in place to address specific
challenges
Investment focused on value-added product roll-outs and
growth accelerators
Portfolio pruning on some peripheral assets
All 2024 objectives
confirmed
Organic revenue growth at c.1%
Adjusted EBITDA at c.€1.1bn
Free Cash-Flow at c.€0.2bn
Paris, La Défense, October 30 2024 –
Worldline [Euronext: WLN], a global leader in payment services,
today announces its revenue for the third quarter of
2024.
Marc-Henri Desportes, CEO of Worldline,
said: “Our Q3 results followed the trend we observed
during the summer and represent a point from which we will rebound
and refocus. The core of our business remains strong, while the
execution of Power24 ensures that we will start 2025 with an
optimized cost structure.
We concentrate our investments on this solid
core and take management actions on the isolated lower
growth areas. We therefore aim to return progressively to
mid-single-digit revenue growth in 2025. The arrival of Paul
Marriott-Clarke, our new head of Merchant Services, the launch of
embedded payments, and the ongoing set-up of our new CAWL joint
venture are important steps in that direction.
Finally, after ten years of actively
consolidating the payments landscape and with the aim to
refocus our group, the time has come to prune non-synergistic
peripheral activities.”
Q3 2024 revenue by Global Business
Line
|
Revenue |
|
|
|
|
|
|
|
|
|
|
In € million |
Q3
2024 |
Q3
2023* |
Organic growth (Published) |
Organic growth (NNR) |
|
Ytd Q3
2024 |
Ytd Q3
2023* |
Organic growth (Published) |
Organic growth (NNR) |
Merchant Services |
867 |
865 |
+0.2% |
(2.7)% |
|
2,525 |
2,471 |
+2.2% |
+0.7% |
Financial Services |
211 |
230 |
(8.3)% |
(8.2)% |
|
668 |
694 |
(3.7)% |
(3.6)% |
Mobility & e-Transactional Services |
85 |
81 |
+4.9% |
+4.9% |
|
259 |
253 |
+2.2% |
+2.2% |
Worldline |
1,163 |
1,176 |
(1.1)% |
(3.4)% |
|
3,452 |
3,418 |
+1.0% |
(0.2)% |
* at constant scope and exchange
rates
Worldline’s Q3 2024 revenue reached €
1,163 million, representing -1.1% organic
growth. The Merchant Services division’s performance was
slightly positive despite a challenging macro-economic backdrop. On
the one hand, business was resilient in some key geographies, and
on the other hand it was negatively impacted by the termination of
merchant contracts (fully finalized end Q1’24) and by some
underperforming businesses for which management has taken decisive
actions. In Financial Services, an M&A driven re-insourcing
process at one of our largest customers drove a one-off negative
performance despite positive underlying growth in Issuing and
important wins in Instant Payment. Mobility & e-Transactional
Services benefitted from positive momentum, notably in France,
driven by differentiated offerings in Worldline Contact
solutions.
Merchant Services
Merchant Services’ revenue in
Q3 2024 reached € 867 million, representing
+0.2% organic growth (+c.5%
excluding merchant terminations and specific challenges) in a soft
consumption context in Europe. Worldline continued to win market
share in Southern Europe, while Central Europe recorded steady
growth. The segment’s more challenging businesses, namely
Asia-Pacific and some specific Online verticals, as well as the
merchant terminations that had started in Q3’23 and finalized end
Q1’24, weighed on overall organic growth. The performance by
division was the following:
- Commercial
Acquiring: dynamic underlying growth driven notably by Central
Europe (Germany and Switzerland) and Southern Europe, although
impacted overall, as expected, by the termination of merchant
contracts and slower activity in APAC.
- Payment
Acceptance: this segment performed softly, mainly due to a
marked slowdown in the Travel and Gaming online verticals.
- Digital
Services: deceleration linked notably to temporary POS
sourcing delays.
Worldline continued to record new wins during
the quarter, such as Appart’City Emirates, Air Transat, Avantida
and CCP.
Financial Services
Q3 2024 revenue in Financial
Services came in at € 211 million, representing
-8.3% organic growth. This figure, when excluding
the re-insourcing impact, was +c.1 %. The continued positive
momentum in acquiring and issuing processing was more than offset
by the large one-off re-insourcing process in Account Payments
activity. The performance by division was the following:
- Card-based
payment processing activities (Issuing Processing and
Acquiring Processing): continued to deliver mid to high
single digit growth thanks to the solid contribution of volumes and
new projects notably in Germany, Italy and the Netherlands. The
pipeline remains strong.
- Digital
Banking: Lower activity, mainly due to decreasing volumes in
France and the Netherlands, overshadowing higher customer demand
for Sanctions Securities and Monitoring solutions.
- Account
Payments: activity was impacted by lower volumes linked to the
one-off re-insourcing of a large client, while the rest of the
business grew slightly thanks notably to new wins in instant
payments.
On the commercial front, Worldline has signed
new contracts with Anadolubank Nederland N.V., Bank of China (Hong
Kong) and British Petroleum (fleet card authorization system).
Mobility & e-Transactional Services
Mobility & e-Transactional Services
revenue reached € 85 million,
up 4.9% organically, mainly driven by increased
activity in France in Trusted Services and
Omnichannel interactions. The performance by division was the
following:
- Trusted
Services: good growth in France thanks to increased activity
in our e-education digital workplace and in Germany driven by our
cryptographic solution for e-health and security hardware
sales.
- Transport
& Mobility: slightly decelerating with lower activity in
the rail industry partly offset by increased volumes in ticketing
in France.
- Omnichannel
interactions: strong growth supported by higher volumes and
project deliveries.
In terms of business developments, two large
companies have extended their partnership with Worldline’s Contact
solution: BNP Paribas Group and Diot-Siaci.
Streamlined Group profile
The Power24 reorganisation was fully delivered
in Q3, as planned.
Implementation cash costs will remain unchanged at € 250
million, and we confirm the € 220 million run rate of cash
costs savings in 2025 at a minimum.
In parallel, we are executing structural actions
to improve our cash generation, with particular attention to capex
prioritization towards growth initiatives and a continuous decrease
of Integration and rationalization costs. These actions constitute
a solid base from which Worldline will accelerate its free cash
flow generation in the coming years.
Ongoing execution to rebound and refocus
Worldline
New leadership for Merchant Services
On October 7, 2024, Worldline announced the
appointment of Paul Marriott-Clarke as the new head of Merchant
Services. M. Marriott-Clarke brings extensive expertise in the
world of banking and payments. He most recently led the Customer
& Digital business at Barclays UK, where he drove the bank’s
digital transformation, shifting the organization towards an agile
and customer-centric model. He had previously served as PayPal
Europe’s CEO and PayPal’s Chief Commercial Officer in the Europe,
Middle East, and Africa region.
M. Marriott-Clarke will lead a Merchant Services
segment that has been restructured into a more customer-focused
organization around go-to markets, namely large enterprises and
small and medium-sized businesses. The new management team will
focus on deploying a differentiated product offering adapted to
clients’ specific needs to accelerate revenue growth.
Management actions in place to address specific
challenges
Worldline’s Merchant Services activity has been
impacted by specific challenges, particularly in the Travel and
Gaming online verticals and in APAC, for which management
implemented action plans.
- In Australia,
the business is not meeting our expectations. A new management team
has been brought in and has started to turn the business around.
Repricing actions are being implemented in agreement with
Worldline’s local banking partner to factor in our cost increases
and secure a return to growth in Q4.
- In the online
business, revenue was held back notably by lower demand in the
Travel and Gaming verticals. Consequently, dedicated actions have
been put in place such as a profound work to accelerate customer
onboarding, i.e. volume ramp-up of already signed customers like
Google or Turkish Airlines.
- As previously
indicated, the impact of merchant terminations (maximum € 130
million on annual revenue) will no longer affect the reported
growth by end-Q1’25 and with already a lesser impact in Q4’24.
Investment focused on value-added product
roll-outs and growth accelerators
To secure Worldline's growth rebound, we are
accelerating the work already engaged in releasing new products
addressing new verticals or distribution channels while reinforcing
banking distribution networks through partnerships.
On the new products release side, while the
Group continues to successfully expand its Tap-on-Mobile solution,
new releases have been launched to address new verticals and
distribution channels, such as among others:
- Leveraging the
partnership with OPP, Worldline has launched an innovative Embedded
Payments solution in Europe for ISV’s and marketplaces. OPP,
coupled with Worldline's 50 years of payment expertise, will
provide a new solution covering the full revenue ecosystem from
global online acceptance to full acquiring capabilities. The
solution is easy to use and integrate, flexible, fully compliant
with the EU regulations particularly the GDPR, secure and flexible
and comes with a full range of value-added capabilities.
- The result of a
combined solution of Merchant Services and Financial Services,
Worldline has launched “Bank Transfer by Worldline”, a new
account-to-account payment method which will be available in 14
European countries by the end of 2024.
Regarding our banking distribution networks, the
implementation of the Group’s roadmap has been pursued to open new
markets (CAWL in France) or to reinforce our positions in new
markets, such as Italy where we continue to grow by over 20%.
- The development
of Worldline’s strategic partnership in France with the operational
set-up of CAWL, our joint-venture with Crédit Agricole, is fully
on-track and as per plan, and we confirmed its go live date in
2025.
- Worldline
continued its geographic expansion in 2024, particularly in Italy.
The CCB partnership signed in Q1’24 is a strategic development that
will ramp-up at the beginning of 2025 with the full migration of
circa 60,000 merchants’ portfolio on the Worldline platform. We
will pursue our development in Italy, which is a very promising
market and one of our highest growth contributors.
Portfolio pruning on some peripheral assets
After a decade of actively consolidating the
European payments landscape, Worldline's management and Board are
currently assessing the relevance of some peripheral assets in the
portfolio that may not enjoy many synergies with the Group’s other
businesses.
This analysis is driven by the Group’s strategic
refocusing, with an objective of orderly execution to generate
shareholder value.
2024 objectives confirmed
- Organic revenue
growth of around 1%.
- Adjusted EBITDA
of around € 1.1 billion.
- Free cash flow
of around € 0.2 billion.
Appendices
RECONCILIATION OF Q3 2023 STATUTORY
REVENUE WITH Q3 2023 REVENUE AT CONSTANT SCOPE AND EXCHANGE
RATES
For the analysis of the Group’s performance, Q3 2023 revenue at
constant scope and exchange rates as presented below per Global
Business Lines:
|
|
Revenue |
|
|
|
|
|
|
In € million |
|
Q3 2023 |
Scope effects** |
Exchange rates effects |
Q3 2023* |
Merchant Services |
|
868 |
-0.5 |
-3.2 |
865 |
Financial Services |
|
232 |
-2.7 |
+0.3 |
230 |
Mobility & e-Transactional Services |
|
81 |
+0.0 |
+0.3 |
81 |
Worldline |
|
1,182 |
-3.2 |
-2.6 |
1,176 |
* At constant scope and September 2024 YTD average exchange
rates |
|
|
|
|
|
** At December 2023 YTD average exchange rates |
|
|
|
|
|
Exchanges rates effect in Q3 were mainly due to
appreciation of Swiss France and depreciation of Turkish Lira while
scope effects are mainly related to scope adjustment in the
Financial Services division.
2023 ESTIMATED PRO FORMA
FY 2023 estimated pro forma at constant scope is presented below
(per Global Business Lines):
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
|
Q2 |
|
H1 |
|
Q3 |
|
Ytd Q3 |
|
Q4 |
|
H2 |
|
FY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
Merchant Services |
|
757 |
|
849 |
|
1,606 |
|
865 |
|
2,471 |
|
850 |
|
1,715 |
|
3,321 |
Financial Services |
|
229 |
|
235 |
|
464 |
|
230 |
|
694 |
|
245 |
|
475 |
|
939 |
Mobility & e-Transactional Services |
|
84 |
|
88 |
|
172 |
|
81 |
|
253 |
|
90 |
|
171 |
|
343 |
Worldline |
|
1,070 |
|
1,172 |
|
2,242 |
|
1,176 |
|
3,418 |
|
1,185 |
|
2,361 |
|
4,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
Adjusted EBITDA |
Merchant Services |
|
|
|
|
|
400 |
|
|
|
|
|
|
|
448 |
|
848 |
Financial Services |
|
|
|
|
|
125 |
|
|
|
|
|
|
|
148 |
|
273 |
Mobility & e-Transactional Services |
|
|
|
|
24 |
|
|
|
|
|
|
|
24 |
|
48 |
Corporate costs |
|
|
|
|
|
-30 |
|
|
|
|
|
|
|
-29 |
|
-59 |
Worldline |
|
|
|
|
|
518 |
|
|
|
|
|
|
|
591 |
|
1,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In % of revenue |
|
|
|
|
|
Adjusted EBITDA % |
|
|
|
|
|
|
|
Adjusted EBITDA % |
|
Adjusted EBITDA % |
Merchant Services |
|
|
|
|
|
24.9% |
|
|
|
|
|
|
|
26.1% |
|
25.5% |
Financial Services |
|
|
|
|
|
26.9% |
|
|
|
|
|
|
|
31.2% |
|
29.1% |
Mobility & e-Transactional Services |
|
|
|
|
13.7% |
|
|
|
|
|
|
|
14.2% |
|
13.9% |
Corporate costs |
|
|
|
|
|
-1.3% |
|
|
|
|
|
|
|
-1.2% |
|
-1.3% |
Worldline |
|
|
|
|
|
23.1% |
|
|
|
|
|
|
|
25.0% |
|
24.1% |
Main components of the scope effects in 2023
estimated pro forma:
Banco Desio added contribution of 3 months
(integrated for 9 months in 2023 reported).
Scope adjustment within Financial Services division in Q3 2024.
PUBLISHED REVENUE TO NET NET
REVENUE
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
In € million |
Q3 2024 Published |
Schemes & Partners fees |
Q3 2024 Net Net |
|
Q3 2023 Published* |
Schemes & Partners fees |
Q3 2023 Net Net |
|
OG% Q3 Published |
OG% Q3 Net Net |
|
|
|
|
|
|
|
|
|
|
|
Merchant Services |
867 |
(238) |
629 |
|
865 |
(218) |
647 |
|
+0.2% |
(2.7)% |
Financial Services |
211 |
(2) |
209 |
|
230 |
(3) |
227 |
|
(8.3)% |
(8.2)% |
Mobility & e-Transactional Services |
85 |
|
85 |
|
81 |
|
81 |
|
+4.9% |
+4.9% |
Revenue |
1,163 |
(240) |
923 |
|
1,176 |
(221) |
955 |
|
(1.1)% |
(3.4)% |
* at constant scope and exchange rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
Ytd Q3 2024 Published |
Schemes & Partners fees |
Ytd Q3 2024 Net Net |
|
Ytd Q3 2023 Published* |
Schemes & Partners fees |
Ytd Q3 2023 Net Net |
|
OG% Ytd Q3 Published |
OG% Ytd Q3 Net Net |
|
|
|
|
|
|
|
|
|
|
|
Merchant Services |
2,525 |
(660) |
1,865 |
|
2,471 |
(618) |
1,853 |
|
+2.2% |
+0.7% |
Financial Services |
668 |
(7) |
661 |
|
694 |
(8) |
685 |
|
(3.7)% |
(3.6)% |
Mobility & e-Transactional Services |
259 |
|
259 |
|
253 |
|
253 |
|
+2.2% |
+2.2% |
Revenue |
3,452 |
(666) |
2,785 |
|
3,418 |
(626) |
2,792 |
|
+1.0% |
(0.2)% |
* at constant scope and exchange rates |
|
|
|
|
|
|
|
|
|
Schemes & Partners fees = scheme fees +
kickbacks PM03 + full buy-rate
FORTHCOMING EVENTS
- 26 February
2025: FY 2024
results
INVESTOR RELATIONS
Laurent Marie
E laurent.marie@worldline.com
Peter Farren
E peter.farren@worldline.com
Guillaume Delaunay
E guillaume.delaunay@worldline.com
COMMUNICATION
Sandrine van der Ghinst
E sandrine.vanderghinst@worldline.com
Hélène Carlander
E helene.carlander@worldline.com
ABOUT WORLDLINE
Worldline [Euronext: WLN] helps businesses of
all shapes and sizes to accelerate their growth journey – quickly,
simply, and securely. With advanced payment technology, local
expertise, and solutions customised for hundreds of markets and
industries, Worldline powers the growth of over one million
businesses worldwide. Worldline generated a 4.6 billion euros
revenue in 2023. worldline.com
Worldline’s corporate purpose (“raison d’être”)
is to design and operate leading digital payment and transactional
solutions that enable sustainable economic growth and reinforce
trust and security in our societies. Worldline makes them
environmentally friendly, widely accessible, and supports social
transformation.
FOLLOW US
DISCLAIMER
This document contains forward-looking
statements that involve risks and uncertainties, including
references, concerning the Group's expected growth and
profitability in the future which may significantly impact the
expected performance indicated in the forward-looking statements.
These risks and uncertainties are linked to factors out of the
control of the Company and not precisely estimated, such as market
conditions or competitors’ behaviours. Any forward-looking
statements made in this document are statements about Worldline’s
beliefs and expectations and should be evaluated as such.
Forward-looking statements include statements that may relate to
Worldline’s plans, objectives, strategies, goals, future events,
future revenues or synergies, or performance, and other information
that is not historical information. Actual events or results may
differ from those described in this document due to a number of
risks and uncertainties that are described within the 2022
Universal Registration Document filed with the French Autorité des
marchés financiers (AMF) on April 30, 2024, under the filling
number: D.24-0377 and its Amendment filed on August 2, 2024, under
number D.24-0377-A01.
Revenue organic growth and Adjusted EBITDA
improvement are presented at constant scope and exchange rate.
Adjusted EBITDA is presented as defined in the 2023 Universal
Registration Document. All amounts are presented in € million
without decimal. This may in certain circumstances lead to
non-material differences between the sum of the figures and the
subtotals that appear in the tables. 2024 objectives are expressed
at constant scope and exchange rates and according to Group’s
accounting standards.
Worldline does not undertake, and specifically
disclaims, any obligation or responsibility to update or amend any
of the information above except as otherwise required by law.
This document is disseminated for information
purposes only and does not constitute an offer to purchase, or a
solicitation of an offer to sell, any securities in the United
States or any other jurisdiction. Securities may not be offered or
sold in the United States unless they have been registered under
the U.S. Securities Act of 1933, as amended (the “U.S. Securities
Act”) or the securities laws of any U.S. are exempt from
registration. The securities that may be offered in any transaction
have not been and will not be registered under the U.S. Securities
Act or the securities laws of any U.S. state and Worldline does not
intend to make a public offering of any such securities in the
United States.
- 20241030 - Worldline - Q3 2024 revenue - Press Release
Worldline (EU:WLN)
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부터 11월(11) 2024 으로 12월(12) 2024
Worldline (EU:WLN)
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