Worldline - H1 2022 results
Very strong first half
2022Revenue: € 2,020 million, +12.6%
organicallyGrowth
acceleration continued in Q2 2022
at +13.5%OMDA: € 468 million,
23.2% of revenue, +80 basis
pointsFree cash flow: €
229 million,
49.0%
OMDA conversion
Strategic initiatives
executedClosing of the acquisition of Axepta
Italy, ANZ and Eurobank acquiring
activitiesTSS closing process fully on-track for
H2
2022
All 2022
objectives
confirmed8% to 10%
revenue organic growth100 to 150 bps OMDA margin
improvement vs. 2021 proformaCirca 45% OMDA
conversion to FCF
Paris La Défense, July
27, 2022 – Worldline [Euronext: WLN], a
global leader in payment services, today announces its H1 2022
results.
Gilles Grapinet, Worldline’s
CEO, said: “Worldline executed a very satisfactory first
half of the year with a strong organic growth of 12.6%,
accelerating again in Q2, confirming, 18 months after the start of
the Ingenico integration, the power of our enhanced competitive
positioning. This performance was, in particular, reached thanks to
the very dynamic growth in Merchant Services with a steady
expansion of acquiring volumes, a solid merchants count deployment,
and numerous new large merchant wins and partnerships.
This strong business trends coupled with cost
optimization plans, integration synergies and operating leverage,
allowed the Group to deliver a 80 basis points margin expansion
led, as planned, by a very significant improvement in Merchant
Services profitability.
In parallel, we continued to execute our
strategic initiatives during the semester with the closing of three
acquisitions (Axepta Italy, ANZ commercial acquiring business in
Australia, and Eurobank Merchant Acquiring in Greece) which will,
from now on, significantly contribute to our Merchant Services
success. The disposal process of TSS is fully on track, with
closing confirmed for the second half of the year. This will
provide Worldline with further financial flexibility to seize
consolidation opportunities in our strong M&A pipeline.
Thanks to this very strong start of the year, we
fully confirm our 2022 annual guidance, and reiterate our 2024
ambition to establish Worldline as a premium global Paytech at the
heart of the European payment ecosystem.”
H1
2022 key
figures
In € million |
|
H1 2022 |
H1 2021 |
Change |
|
|
|
|
|
Revenue* |
|
2,020 |
1,794 |
+12.6% |
|
|
|
|
|
OMDA* |
|
468 |
401 |
+16.7% |
% of revenue |
|
23.2% |
22.3% |
+80 bps |
|
|
|
|
|
Net income Group share from continued
operations** |
|
53 |
53 |
+0.4% |
% of statutory revenue from continued operations |
|
2.6% |
3.1% |
|
|
|
|
|
|
Normalized net income Group share from continued
operations** |
|
213 |
169 |
+26.2% |
% of statutory revenue from continued operations |
|
10.5% |
10.0% |
|
|
|
|
|
|
Free cash flow (FCF) from continued
operations |
|
229 |
143 |
+60.4% |
OMDA to FCF conversion rate*** |
|
49.0% |
37.3% |
|
|
|
|
|
|
Closing net debt (before IFRS 5)* |
|
3,456 |
2,939 |
|
* H1 2021 at constant scope and exchange rates** H1
2021 amounts restated in application of IFRS 5*** H1 2021
conversion rate calculated on H1 2021 statutory OMDA from continued
operations
Worldline’s H1
2022 revenue
reached €
2,020
million, representing a solid
+12.6%
revenue organic growth (of which
+13.5%
in Q2). This achievement was reached
thanks, in particular, to the continuous growth acceleration in
Merchant Services reflecting the widespread and rapid shift towards
digital payments as well as the Group’s strong positioning
following the acquisition of Ingenico. Mobility &
e-Transactional Services also contributed to growth acceleration,
delivering a strong +10.3% organic growth in Q2 after having
delivered +8.4% in Q1. Financial Services was up by +3.0% in Q2
(+2.5% in Q1) despite the temporary impact from the price decrease
conceded by the Group for the successful synchronous renewals of
historical large contracts of Equens done in Q4 2021.
This strong execution also materialized in the
Group’s Operating Margin before Depreciation and
Amortization (OMDA) reaching €
468 million in H1 2022;
representing
23.2%
of revenue, an improvement by
+80 basis points
compared to H1 2021 at constant scope and exchange rates. This
profitability improvement was led in particular by Merchant
Services posting +310 basis points thanks to the acceleration of
revenue growth fostering operating leverage; synergies from
Ingenico; and effects of transversal productivity improvement
actions.
Net loss
Group share amounted to
€-42
million, including a €-96 million
loss attributable to discontinued operations. Net
income Group share from
continued operations reached €
53 million, stable year-on-year.
Normalized net income Group share
from continued operations
(excluding unusual and infrequent items, Group share, net of tax)
reached € 213
million, increasing by +26.2% or € 44 million
compared to H1 2021 Normalized net income Group share (restated in
application of IFRS 5).
Normalized
diluted EPS was
€
0.76 in H1 2021
compared to € 0.59 in H1 2021 (restated in application of IFRS
5).
Free cash flow from continued
operations in H1 2021 was €
229 million,
representing a
49.0%
cash conversion of OMDA (free cash flow divided by OMDA),
in line with the expected half-yearly pattern of 2022.
Group Net debt before IFRS 5
amounted to €
3,456
million at the end of June 2022, reflecting free
cash flow generated over the semester on one side, as well as the
cash-out for the acquisitions closed during the period on the other
side.
Focus on Q2 2022 revenue
performance
In € million |
|
Q2 2022 |
Q2 2021* |
Organic change |
|
|
|
|
|
Merchant Services |
|
751 |
639 |
+17.6% |
Financial Services |
|
235 |
228 |
+3.0% |
Mobility & e-Transactional Services |
|
95 |
86 |
+10.3% |
|
|
|
|
|
Worldline |
|
1,081 |
952 |
+13.5% |
* at constant scope and exchange rates
Worldline’s Q2
2022 revenue
reached € 1,081
million, representing a strong
+13.5%
organic growth with all Global Business Lines contributing
to growth acceleration.
Merchant Services
Merchant Services’ revenue in
Q2 2022 reached € 751
million, representing an strong organic
growth by
+17.6%,
led in particular by the strong acquiring MSV growth and new
merchants gained. The growth was mainly led by:
- Commercial Acquiring showed a
strong double-digit growth trending towards 30%, for almost all
geographies and customer segments with strong dynamics and a good
cash-to-card conversion trend;
- Payment Acceptance also contributed
to the growth of Merchant Services thanks to mid-single-digit
organic growth. Growth was spread in all geographies with strong
volumes for SMBs and large retailers. While benefiting from a
significant recovery of travel related volumes, digital commerce
(representing almost half of the acceptance business) faced a more
difficult situation due to the impact of the stop of Russian
activities; and
- Digital
Services grew at a high single-digit, led by a strong recovery in
Germany compensating as anticipated some limited delays in POS
supply during the quarter.
Merchant Services performance reflects a very
strong development of market positions all along the semester,
notably in commercial acquiring, as illustrated by the following
business KPI:
- Worldline’s acquiring merchant base
continued to steadily grow with c. 60,000 new merchants onboarded
on the Group platform over the first semester of the year, reaching
1.2 million merchants as of end of June 2022 (including Axepta
Italy and Handelsbanken merchants in both H1 2022 and H1 2021). It
represents a +10% increase over the semester led by a strong
dynamic in both instore (+9%) and online (+14%) merchants
count.
- Acquired MSV
also continued to expand with an overall acquiring MSV reaching
€ 147 billion in H1 2022, up +30% versus H1 2021 and up
+28% versus H1 2019. This H1 2022 MSV performance has been
fuelled by market share gains in both instore (+30%) and online
(+31%).
During the second quarter of the year,
commercial activity in Merchant Services has been strong with
numerous wins for both upsell with existing clients and contracts
with large new merchants such as, among others, Myra, Eram, Alpiq,
Icelandair, TUI Cruises, Iberostar, or Milanoo.
In Q2, Worldline continued to play actively its
orchestrator role of the payment industry with numerous
partnerships signed such as the one with SoftPos, enlarging
Worldline offering with a new value proposition for micro merchants
with mobile Tap & Pay payment solution on Android mobile
devices, with Casio for the simplification of the card acceptance
in Japan leveraging Casio front-end positioning on the ECR market
while combining it with Vesca NSP positioning, and with .planet
through a joint offering providing full-service end-to-end
integrated payment solution for hospitality, featuring omnichannel
capabilities and DCC services.
Financial Services
Financial Services delivered a
+3.0%
organic growth in Q2 2022, a slight acceleration compared
to Q1 2022 (+2.5%), 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 in Q4
2021. As a results, Q2
2022 revenue
reached € 235
million with the following performance by
division:
- Card-based payment processing
activities (Issuing Processing and Acquiring Processing altogether)
benefitted from improved volume trends over the quarter and a
decent level of project activities. Nevertheless, these two units
decreased organically due to price reductions conceded at renewal
time of large processing contracts, as planned and already
disclosed;
- Account Payments grew at a
double-digit rate in Q2, supported by increased volumes and strong
project demand, notably in Germany;
- Digital Banking
delivered a mid-single digit organic growth led by higher
authentications volumes related to ecommerce transactions due to
enforcement of the PSD2 regulation compensating for lower iDeal
volumes in the Netherlands.
During the second quarter, several Financial
Services contracts were signed or renewed by Worldline, and in
particular with DFM, a financing partner for enterprises within the
mobility sector which chose Worldline to be their Instant Payments
and Clearing & Settlement mechanism partner, and with Aegon
Bank N.V. for back-office processing for handling Instant payments,
SEPA batch payments and multi-currency payments. Worldline also
renewed for 5 years its contract with Credit Agricole Payment
Services for the management of the ACS service (Access Control
Server), enabling issuing banks to manage 3DSecure processes and to
authenticate cardholders during online payments. Finally, Worldline
partnered with two fintechs in the Financial Services space;
manager.one to offer to corporate cardholders a seamless experience
for managing their business expenses, and Algoan to offer
next-level credit assessment solution for lenders & service
providers.
Mobility & e-Transactional
Services
Revenue in Mobility &
e-Transactional Services reached €
95 million in Q2 2022,
up organically by
+10.3%,
accelerating after +8.4% in Q1. Growth was spread in each of the
three divisions:
- Trusted Digitization in particular
strongly grew double-digit with several new projects and improving
volumes in France, as well as higher volumes in Tax collection and
digital healthcare in Latin America. The division also benefited
from more support and project activity on eHealth solutions in
Germany and increasing activity in Spain.
- e-Ticketing also grew at a
double-digit rate thanks to higher transportation volumes and fare
collection in the UK and as well as in Latin America where the
activity also benefited from ticket tariff increases.
- e-Consumer
& Mobility growth was supported in particular by the ramp-up of
newly signed Contact contracts and the sale of solutions for
connected vehicles.
Commercial activity in Mobility &
e-Transactional Services was strong in Q2, notably with a 6-year
duration agreement with GTR, the UK’s largest railway operator
delivering 24% of all passenger rail journeys has awarded Worldline
with for the continued support of their booking office and on-board
ticket issuing systems. Worldline was also selected by a large
French metropole to build and operate the first project in France
to incentive drivers to use more ecological virtuous transport
mode, with a target of reducing up to 7% the traffic during peak
hours, relieving the traffic and improving the air quality. In
Trusted Services, GIE Sesam Vitale, the French public operator in
charge of digitizing reimbursements covered by public health
insurance in France has chosen Worldline to set up a large-scale
SecNumCloud project, for the hosting and operation of the mobile
application replacing the existing card centric system.
H1 2022 OMDA performance per Global
Business Line
|
|
OMDA |
|
OMDA % |
|
|
|
|
|
|
|
|
|
In € million |
|
H1 2022 |
H1 2021* |
Organic change |
|
H1 2022 |
H1 2021* |
Organic change |
|
|
|
|
|
|
|
|
|
Merchant Services |
|
352 |
264 |
+33.1% |
|
25.5% |
22.4% |
+310 bps |
Financial Services |
|
123 |
129 |
-5.0% |
|
26.8% |
29.0% |
-220 bps |
Mobility & e-Transactional Services |
|
26 |
25 |
+2.6% |
|
13.9% |
14.9% |
-90 bps |
Corporate costs |
|
-32 |
-18 |
+82.7% |
|
-1.6% |
-1.0% |
-60 bps |
|
|
|
|
|
|
|
|
|
Worldline |
|
468 |
401 |
+16.7% |
|
23.2% |
22.3% |
+80 bps |
* at constant scope and exchange rates
Merchant Services
Merchant Services’ OMDA in H1
2022 amounted to € 352
million,
25.5%
of revenue, representing a strong improvement by
+310 basis
points. It was positively supported by:
- Acceleration of revenue growth
fostering operating leverage;
- Synergies from Ingenico integration
program; and
- The effects of
transversal productivity improvement actions.
Financial Services
H1 2022 OMDA reached €
123 million, representing 26.8%
of revenue. The overall profitability of Financial
Services remained high despite the renewal of Equens contracts at a
lower price and to a lesser extent the temporary impact related to
cost inflation not yet compensated by the full impact of already
launched mitigation measures.
Mobility & e-Transactional
Services
Mobility & e-Transactional Services’
OMDA reached
€ 26
million in H1 2022, representing
13.9% of
revenue. Positive business trends and cost optimization
plans addressing both fixed and variable costs helped to offset the
overall cost inflation.
Corporate costs
Corporate costs amounted to € 32 million in H1
2022, representing 1.6% of total Group revenue compared to 1.0% in
H1 2021 at constant scope and exchange rates. This increase reflect
the implementation of a more centralized operating model following
recent acquisitions.
2022 objectives
fully
confirmed
2022 objectives are the following:
- Revenue organic
growth: +8% to +10%
- OMDA margin: +100
to +150 basis points improvement vs. proforma 2021 OMDA margin
- Free
cash flow: circa 45% OMDA conversion rate
2024 Worldline ambition
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
H1 2022
revenue by Global Business Line
In € million |
|
H1 2022 |
H1 2021* |
Organic change |
|
|
|
|
|
Merchant Services |
|
1,378 |
1,180 |
+16.8% |
Financial Services |
|
458 |
445 |
+2.8% |
Mobility & e-Transactional Services |
|
184 |
168 |
+9.4% |
|
|
|
|
|
Worldline |
|
2,020 |
1,794 |
+12.6% |
* at constant scope and exchange rates
Reconciliation of
H1 2021
statutory revenue and OMDA with
H1 2021
revenue and OMDA at constant scope and exchange
rates
For the analysis of the Group’s performance,
revenue and Operating Margin before Depreciation and Amortization
(OMDA) for H1 2022 are compared with H1 2021 revenue and OMDA at
constant scope and exchange rates. Reconciliation between the H1
2021 reported revenue and OMDA and the H1 2021 revenue and OMDA at
constant scope and foreign exchange rates is presented below per
Global Business Lines:
|
|
Revenue |
|
|
|
|
|
|
|
In € million |
|
H1 2021 |
Scope
effect** |
TSS scope out** |
Exchange rates effect |
H1 2021* |
Merchant Services |
|
1,084 |
+89.6 |
|
+6.8 |
1,180 |
Terminals, Solutions & Services |
|
579 |
|
-578.7 |
|
0 |
Financial Services |
|
442 |
|
|
+3.4 |
445 |
Mobility & e-Transactional Services |
|
168 |
|
|
+0.1 |
168 |
Worldline |
|
2,272 |
+89.6 |
-578.7 |
+10.4 |
1,794 |
|
|
|
|
|
|
|
|
|
OMDA |
|
|
|
|
|
|
|
In € million |
|
H1 2021 |
Scope
effect** |
TSS scope out** |
Exchange rates effect |
H1 2021* |
Merchant Services |
|
248 |
+16.5 |
|
-0.1 |
264 |
Terminals, Solutions & Services |
|
149 |
|
-148.9 |
|
0 |
Financial Services |
|
127 |
+0.0 |
|
+1.8 |
129 |
Mobility & e-Transactional Services |
|
25 |
|
|
+0.1 |
25 |
Corporate costs |
|
-18 |
-0.0 |
|
-0.1 |
-18 |
Worldline |
|
531 |
+16.5 |
-148.9 |
+1.7 |
401 |
* at constant scope and June 2022 exchange rates**
at June 2021 YTD exchange rates
Over the semester, compared to the same period last
year, exchanges rates effect is mainly due to:
- the Euro depreciation versus the
Swiss franc as well as, to a lesser extent, versus the Australian
dollar, the Indian rupee, and the British pound, and
- the Euro
appreciation versus the Turkish lira and Swedish krona.
Scope effects on H1 2021 reported are related to
the exclusion of Benelux and Austrian assets disposed following
Ingenico acquisition (excluded for 2 months from 2021 reported) and
to the integration of Cardlink, Handelsbanken and Axepta Italy
(integrated for 6 months to 2021 reported) as well as ANZ (for 3
months).
FY 2021 estimated
proforma
For the analysis of the Group’s organic
performance, revenue and OMDA in 2022 are compared with 2021
revenue and OMDA at constant scope and exchange rates as presented
below (at June 2022 YTD exchange rates and per Global Business
Lines):
|
|
Q1 |
|
Q2 |
|
H1 |
|
Q3 |
|
Q4 |
|
H2 |
|
FY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
|
Revenue |
Merchant Services |
|
542 |
|
639 |
|
1,180 |
|
723 |
|
758 |
|
1,480 |
|
2,660 |
Financial Services |
|
217 |
|
228 |
|
445 |
|
236 |
|
251 |
|
487 |
|
932 |
Mobility & e-Transactional Services |
|
83 |
|
86 |
|
168 |
|
87 |
|
91 |
|
178 |
|
347 |
Worldline |
|
841 |
|
952 |
|
1,794 |
|
1,046 |
|
1,100 |
|
2,146 |
|
3,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
|
|
|
|
|
OMDA |
|
|
|
|
|
OMDA |
|
OMDA |
Merchant Services |
|
|
|
|
|
264 |
|
|
|
|
|
405 |
|
670 |
Financial Services |
|
|
|
|
|
129 |
|
|
|
|
|
165 |
|
294 |
Mobility & e-Transactional Services |
|
|
|
|
|
25 |
|
|
|
|
|
27 |
|
52 |
Corporate costs |
|
|
|
|
|
-18 |
|
|
|
|
|
-21 |
|
-39 |
Worldline |
|
|
|
|
|
401 |
|
|
|
|
|
576 |
|
977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In € million |
|
|
|
|
|
OMDA% |
|
|
|
|
|
OMDA% |
|
OMDA |
Merchant Services |
|
|
|
|
|
22.4% |
|
|
|
|
|
27.4% |
|
25.2% |
Financial Services |
|
|
|
|
|
29.0% |
|
|
|
|
|
33.8% |
|
31.5% |
Mobility & e-Transactional Services |
|
|
|
|
|
14.9% |
|
|
|
|
|
15.0% |
|
14.9% |
Corporate costs |
|
|
|
|
|
-1.0% |
|
|
|
|
|
-1.0% |
|
-1.0% |
Worldline |
|
|
|
|
|
22.3% |
|
|
|
|
|
26.8% |
|
24.8% |
Components of the estimated scope impact from 2021
reported to FY 2021 estimated proforma:
- Sale of Benelux and Austrian assets
related to Ingenico acquisition for 10 months (excluded for 2
months from 2021 reported)
- Cardlink and Handelsbanken added
contribution of 9 months (integrated for 3 months to 2021
reported)
- Axepta Italy integrated for 12
months (from January 1st, 2022)
- ANZ integrated for 9 months (from
April 1st, 2022)
- Eurobank
integrated for 6 months (from July 1st, 2022)
Forthcoming event
- 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 - H1 2022 results - Press release
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