Worldline - Q1 2022 revenue - Press Release
Very strong start of the
yearQ1 2022 revenue from continued
operations: € 939 million+11.6%
organically fuelled by
+15.8% in Merchant
Services
Full execution of the strategic
roadmapClosing of the acquisitions of ANZ
acquiring activities and Axepta ItalyClosing of
TSS sale process on track
2022
objectives
confirmeddespite the Russian-Ukrainian
situation impacts8%
to 10% revenue organic
growth100 to 150
bps OMDA margin improvement vs.
2021
proformaCirca
45% OMDA conversion to FCF
Paris La Défense,
April
27, 2022 – Worldline
[Euronext: WLN], a leader in the payments industry,
today announces its
revenue for the first quarter of
2022.
Gilles Grapinet, CEO of
Worldline, said: “During the first quarter of the year,
Worldline executed a very strong start of the year with a solid
organic growth of +11.6%, confirming the strengths of its
competitive positioning. This performance was reached thanks to the
very dynamic growth in Merchant Services.
In Q1, we signed many new contracts with
renowned international retail groups who have chosen Worldline for
their payment needs, while we enjoyed a very dynamic commercial
activity with the SMB merchants. Leveraging its scale and reach,
Worldline continued to play actively its orchestrator role within
the payment ecosystem with numerous new partnerships signed during
the quarter with Tier-one players such as Alipay, Oracle, Microsoft
or UniCredit for an open banking solution leveraging Worldline
APIs.
In parallel, we continued to execute our M&A
roadmap. The disposal process of TSS is fully on track towards a
closing in the second half of the year, as planned. Regarding our
acquisition strategy, I am pleased to report that the acquisitions
of Axepta Italy and ANZ commercial acquiring business in Australia
have been completed. Thanks to its reinforced agility, Worldline
intends to actively participate in the European market
consolidation still offering a significant number of new
opportunities.
Thanks to this very strong start of the year and
despite the impact of the Ukrainian crisis, we confirm our 2022
annual guidance, which is a key cornerstone for our strategic
roadmap aiming at establishing Worldline as a premium global
Paytech at the heart of the European payment system and enriching
our portfolio to create more value for merchants and banks.”
Q1
2022 revenue by Global
Business Line
In € million |
|
Q1 2022 |
Q1 2021* |
Organic change |
|
|
|
|
|
Merchant Services |
|
627 |
542 |
+15.8% |
Financial Services |
|
223 |
217 |
+2.5% |
Mobility & e-Transactional Services |
|
90 |
83 |
+8.4% |
|
|
|
|
|
Worldline |
|
939 |
841 |
+11.6% |
* at constant scope and exchange rates
Worldline’s Q1 2022 revenue
reached € 939
million, representing a strong
+11.6%
organic growth. This achievement was notably reached
thanks to the very dynamic growth in Merchant Services at +15.8%
organically, benefiting from the strong growth of acquiring MSV (up
by +36% in Q1 2022 compared to the same period last year). Mobility
& e-Transactional Services also contributed to growth,
delivering a strong +8.4% organic growth in Q1. Financial Services
was up by +2.5%, a decent performance taking into account the
temporary impact from the price decrease conceded by the Group for
the successful synchronous renewals of historical large contracts
of Equens in Q4 2021.
Merchant Services
Merchant Services’ revenue in
Q1 2022 reached
€ 627
million, representing a strong organic
growth by
+15.8%,
led in particular by the strong acquiring MSV growth by +36% in Q1
2022 compared to the same period last year. By division, the growth
was mainly led by:
- Commercial Acquiring showed a
strong double-digit growth in almost all geographies and customer
segments with strong dynamics;
- Payment Acceptance also contributed
to the growth of Merchant Services thanks to high single-digit
organic growth. Growth was spread in all geographies and led by
much stronger transactions’ volumes, in particular for digital
native players benefitting from the bounce-back of the Travel
vertical, as well as a strong dynamic of SMBs, notably in Germany;
and
- Digital
Services delivered a mid-single digit growth with a mixed picture
by geography and customer segment.
During the first quarter of the year, commercial
activity in Merchant Services has been particularly strong with
numerous new client wins and upsells signed with existing clients
such as among others But, Vinfast, Monoprix, Pearson, Chronopost or
Norse.
In Q1, leveraging its scale and reach, Worldline
continued to play actively its orchestrator role of the payment
ecosystem with numerous partnerships signed such as:
- Microsoft with Next Gen fraud
solution for online payments based on Dynamics 365 fraud
protection;
- Alipay for the Integration of
Alipay+ enhancing in-store and e-commerce payments with a wide
range of e-wallets and bank apps from across Asia;
- Oracle through the integration
agreement including full suite of payment services for hospitality,
F&B and Retail verticals;
- Vesca for
Credit card acquiring and POS card acceptance and processing in
Japan for instore and online merchants.
Financial Services
Financial Services delivered a
+2.5%
organic growth in Q1 2022, a decent performance in line
with FY expectations with solid revenue flows partly compensating
the temporary impact from the price decrease conceded by the Group
for the renewals of historical large contracts of Equens end of
2021, effects that will fade away in the course of the second half
2022. As a results, Q1 2022 revenue reached
€ 223
million. The performance of each division
continued to be contrasted:
- Issuing Processing:
low-to-mid-single-digit organic growth thanks to higher transaction
volumes project deliveries in Belgium and Asia, compensating for
the impact of price concession of renewed large contracts;
- Acquiring Processing: improved
volume trends in the Netherlands, Belgium and Germany, did not
fully compensated for the impact of price concession of renewed
large contracts, in particular in the Netherlands, leading to a
low-to-mid-single-digit organic decline of the division;
- Despite the difficult base effect
of the UniCredit contract now in its run phase with significant
decrease of project works as per plan, Account Payments grew at
mid-to-high-single-digit, pursing the positive trend recorded last
year and largely benefitting from the significant level of activity
of large contracts in Germany in particular;
- Digital Banking
delivered a high-single-digit organic growth with strong volumes in
France where the unit continued to benefit from higher
authentications volumes related to ecommerce transactions due to
enforcement of the PSD2 regulation, as well as strong volumes and
project deliveries in Belgium.
Since the start of the year, Financial Services
continued to extend its business, and notably through the following
signatures, among others:
- a partnership with UniCredit to
allow the bank’s customers to connect their accounts in other banks
throughout Europe via one single application programming interface
(API). This enables UniCredit to effectively offer Account
Information Services (AIS) and Payment Initiation Services (PIS)
and opens up a range of business opportunities for both UniCredit
and its customers. UniCredit has been using Worldline’s Open
Banking TPP service since 2020. The partnership has been extended
for another two years;
- a partnership
with Mainsys Financial Software, a Belgian IT company that offers
comprehensive banking solutions. The joint solution has been
recently rolled-out for the first time to manage co-badged Visa
Debit-Bancontact cards.
Mobility & e-Transactional
Services
Revenue in Mobility &
e-Transactional Services reached €
90 million,
up organically by
+8.4%,
thanks to the contribution of each of the three divisions:
- Trusted Digitization in particular
strongly grew at a strong double-digit rate in Q1 2022 with volume
increase and new projects signed in France, higher volumes in Tax
collection and digital healthcare in Latin America, growing project
activity on eHealth solutions in Germany, and new cash-to-invoice
solutions sold in the Brexit context.
- e-Ticketing delivered a
high-single-digit growth driven by higher project activity and
increasing volumes on rail transactional revenue in the UK, higher
transportation and fare collection in Latin America, coupled with
several development projects in France and Germany.
- Finally,
e-Consumer & Mobility was slightly up organically with lower
revenue on the Group’s cryptographic solutions in Germany, offset
by the strong momentum of Contact solutions in France and thanks to
higher project activity in Iberia in Connected Living and
Mobility.
Commercial activity in Mobility &
e-Transactional Services was strong in Q1, in particular with the
following signatures:
- The department of the North
(largest administrative area in France) has chosen Worldline to use
the SaaS solution Worldline Parcours RSA in order to equip their
+1,400 social agents. It will enable the Department to streamline
the process of supporting social assistance beneficiaries with the
hundreds of counterparts involved, in order to bring them back
quicker in employment.
- Worldline will deliver Cloud based
control system to a train operating company in Great Britain to
provide better IT integration and data flows such as planning and
maintenance systems.
2022
objectives confirmed
2022 objectives are the following:
- Revenue
organic growth: +8% to +10%
- OMDA
margin: +100 to +150 basis points improvement vs.
estimated 2021 proforma OMDA margin
- Free
cash flow: circa 45% OMDA conversion rate
The bottom of the 2022 objectives range factors
localized and temporary Covid-19 constraints, limited recovery of
international travel and limited delays on POS supply related to
still ongoing components shortages, as well as the impact along the
year of international sanctions policies on Merchant Services
online activities in Russia.
2024 Worldline ambition fully
reiterated
The Group ambitions to deliver:
- Revenue
organic growth: +9% to +11% CAGR
- OMDA
margin: above 400 basis points improvement over the
2022-2024 period, trending towards 30% of revenue by 2024
- Free
cash flow: circa 50% OMDA conversion rate
Appendices
Reconciliation of
Q1
2021
statutory revenue with Q1
2021
revenue at constant scope and exchange rates
For the analysis of the Group’s performance,
revenue for Q1 2022 is compared with Q1 2021 revenue at constant
scope and exchange rates as presented below per Global Business
Lines:
In € million |
|
Q1 2021 |
Scope
effect** |
TSS scope out** |
Exchange rates effect |
Q1 2021* |
Merchant Services |
|
517 |
+21.6 |
|
+2.9 |
542 |
Terminals, Solutions & Services |
|
266 |
|
-265.6 |
+0.0 |
0 |
Financial Services |
|
216 |
|
|
+1.4 |
217 |
Mobility & e-Transactional Services |
|
82 |
|
|
+0.4 |
83 |
Worldline |
|
1,080 |
+21.6 |
-265.6 |
+4.7 |
841 |
* At constant scope and March 2022 YTD average
exchange rates** At December 2021 YTD average exchange rates
Exchanges rates effect in Q1 is mainly due to the
Euro depreciation vs the Swiss franc as well as vs the British
pound and the Indian rupee to a lesser extent on the one side, and
the Euro appreciation vs the Turkish lira and Swedish krona on the
other side.
Scope effects are related to the consolidation
of Cardlink, Handelsbanken, and Axepta Italy on the one side, and
the divestments following the clearance from the European
Commission for the acquisition of Ingenico on the other side.
FY 2021 pro forma
For the analysis of the Group’s organic
performance, revenue and Operating Margin before Depreciation and
Amortization (OMDA) in 2022 will be compared with 2021 revenue and
OMDA at constant scope and exchange rates. Reconciliation of FY
2021 reported revenue and OMDA with FY 2021 revenue and OMDA at FY
2022 scope and foreign exchange rates is presented below (per
Global Business Lines):
|
|
Estimated proforma revenue |
|
Estimated proforma OMDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
|
Q1 |
Q2 |
H1 |
Q3 |
Q4 |
H2 |
2021 |
|
H1 |
H2 |
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchant Services |
|
542 |
637 |
1,179 |
722 |
759 |
1,481 |
2,659 |
|
268 |
412 |
681 |
Financial Services |
|
217 |
228 |
445 |
235 |
251 |
487 |
931 |
|
129 |
165 |
293 |
Mobility & e-Transactional Services |
|
83 |
86 |
169 |
88 |
91 |
179 |
348 |
|
25 |
27 |
52 |
Corporate costs |
|
- |
- |
- |
- |
- |
- |
- |
|
-18 |
-21 |
-39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldline |
|
841 |
951 |
1,793 |
1,045 |
1,102 |
2,147 |
3,939 |
|
405 |
583 |
988 |
* At March 2022 YTD average exchange rates
Components of the estimated scope effect from 2021
reported to estimated 2021 proforma:
- Sale of Benelux and Austrian assets
related to Ingenico acquisition for 10-month (excluded for 2-month
in 2021 reported)
- Cardlink and Handelsbanken added
contribution of 9-month (Integrated for 3-month in 2021
reported)
- Axepta Italy integrated for
12-month
- ANZ integrated for 9-month
(transaction closed on March 31st, 2022)
- Eurobank integrated for 6-month
(estimated closing: July 1st, 2022)
Forthcoming events
- June 9,
2022 Annual
General Shareholders’ Meeting
- July 27,
2022 H1
2022 results
- October 25,
2022 Q3 2022
revenue
Contacts
Investor Relations
Laurent Marie+33 7 84 50 18
90laurent.marie@worldline.com
Benoit d’Amécourt+33 6 75 51 41
47benoit.damecourt@worldline.com
Communication
Sandrine van der Ghinst+32 499 585
380sandrine.vanderghinst@worldline.com
Hélène Carlander+33 7 72 25 96
04helene.carlander@worldline.com
About
Worldline
Worldline [Euronext: WLN] is a global leader in
the payments industry and the technology partner of choice for
merchants, banks and acquirers. Powered by 20,000 employees in more
than 50 countries, Worldline provides its clients with sustainable,
trusted and innovative solutions fostering their growth. Services
offered by Worldline include instore and online commercial
acquiring, highly secure payment transaction processing and
numerous digital services. In 2021 Worldline generated a proforma
revenue close to 4 billion euros. 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.
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 2021
Universal Registration Document filed with the French Autorité des
marchés financiers (AMF) on April 25, 2022 under the filling
number: D.22-0342.
Revenue organic growth and Operating Margin
before Depreciation and Amortization (OMDA) improvement are
presented at constant scope and exchange rate. OMDA is presented as
defined in the 2021 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. 2022
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. state, or 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.
- Worldline - Q1 2022 revenue - Press Release
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