Worldline - Q3 2021 revenue
Q3 2021
revenue1in line
with full-year trajectory
Robust organic growth of 8.3%
Q3 revenue:
€ 960 million
Divestment strategy of the
payment
terminal business validated2Short
term scenario: sale discussions
progressing as per plan
2021 objectives for
continued operations3in line with
full year guidanceAt least
6% revenue organic
growthAbove 200 bps OMDA margin
improvement vs. 2020 proforma
(23.1%)Circa
42% OMDA conversion to
FCF
(stable
versus
20204)
New governance in
placeChairman of the Board:
Bernard BourigeaudCEO: Gilles
Grapinet
Bezons,
October
26, 2021 –
Worldline [Euronext: WLN], leader in the payments industry,
today announces its Q3 2021 revenue. As planned at the time of the
Ingenico’s acquisition, the new governance of the Group has been
implemented by the Board of Directors, with Bernard Bourigeaud
appointed as Chairman while Gilles Grapinet remains CEO.
Gilles Grapinet, CEO of
Worldline, said: “Throughout the third quarter, Worldline
benefited from steady dynamics in domestic payment transaction
volumes, allowing the Group to deliver particularly robust growth
well in line with our central scenario for the year. The ongoing
trends are expected to continue, paving the way for further
acceleration in Q4. As such, we confirm our 2021 objectives, which
are now excluding those of the payment terminal business.
As part of the review of the payment terminal
activity, the Board of Directors has validated the divestment
strategy. Correspondingly, the Group has completed the definition
of all the elements necessary for a fully stand-alone and
independent TSS business. The Group is currently giving priority to
the short-term scenario with sale discussions progressing as per
plan.
Finally, Worldline will host tomorrow its 2021
Investor Day where we will present our vision for the next three
years.”
Bernard Bourigeaud, Chairman of the
Board of Directors of Worldline said: “I
am honored and very proud to become Chairman of the Board of
Directors of Worldline at this very important moment of the new
Group’s three-year strategic plan, and to work with the Board
Members and Gilles Grapinet and its management team, to endorse
Worldline’s vision to create a Global payment champion for the
benefit of all stakeholders and society at large.”
New governance in place
As announced in the context of the acquisition
of Ingenico and confirmed by Worldline in its press release dated
April 14, 2021, Mister Bernard Bourigeaud5, independent Director
since October 28, 2020, has been appointed as Chairman of the Board
of Directors of Worldline on October 25, 2021.
Mister Gilles Grapinet, Chief Executive Officer
of the Group since April 30, 2014, and who had assumed the position
of Chairman of the Board since October 24, 2019, will continue to
lead the executive management of the Group as Chief Executive
Officer.
Payment terminals business strategic
review
The Board of Directors has validated the
strategy to divest TSS (Terminals, Solutions & Services)6.
Correspondingly, the Group has completed the definition of all the
elements necessary for a fully stand-alone and independent TSS
business including its transformation journey, a proper corporate
structure, a tested framework for commercial and contractual
relationships with Worldline, as well as a documented and detailed
carve-out project.
The Group is currently giving priority to the
short-term scenario with ongoing sale discussions progressing as
per plan.
In this context, TSS is accounted for under IFRS
5 as discontinued operation. As such all figures presented in this
press release exclude those of TSS.
2021 revenue trend scenario
confirmed
After the materialization of the scenario
expected by the Group for the first nine months of 2021, Worldline
confirms its underlying hypothesis for H2 2021, as follows:
- Ease of domestic restrictions with
end of lockdowns for non-essential merchants, end of curfews and
border restrictions;
- Intra-European travels fully
allowed and progressive return to normal level of travel
flows;
- No significant intercontinental
travel.
All 2021 objectives for continued operations7 in
line with full year guidance
2021 objectives are based on the revenue trend
scenario described above and are the following:
- Revenue organic
growth: At least 6%
- OMDA margin: Above
200 basis points improvement vs. proforma 2020 OMDA margin of
23.1%
- Free cash flow: c.
42% OMDA conversion rate (stable versus 20208)
Q3
2021 revenue performance per Global Business
Line
For the analysis of the Group’s performance,
revenue for Q3 2021 is compared to Q3 2020 revenue at constant
scope and exchange rates.
During the third quarter of 2021, Worldline’s
revenue reached € 960 million representing a robust organic growth
of 8.3%, led by a steady increase in payment transaction volumes.
Q3 2021 revenue organic evolution per Global Business Line was as
follows:
In € million |
|
Q3 2021 |
Q3 2020* |
Organic change |
Merchant Services |
|
639 |
585 |
+9.2% |
Financial Services |
|
234 |
223 |
+5.0% |
Mobility & e-Transactional Services |
|
88 |
79 |
+10.9% |
Worldline |
|
960 |
887 |
+8.3% |
* At constant scope and exchange rates
Merchant Services
Merchant Services’ revenue in Q3 2021 reached €
639 million, representing organic growth of 9.2%. This solid
performance was led by the positive ongoing dynamic in domestic
payment volumes despite a solid comparison basis. As a reminder, Q3
2020 benefitted from a strong recovery of payment volumes following
the wide re-openings of economies during the summer season after
the first wave of Covid.
In Q3 2021, the main performance drivers per
division were:
- Commercial Acquiring: Double-digit
growth with almost all geographies and customer segments
contributing positively, in particular SMBs in Switzerland and the
Nordics.
- Payment Acceptance: Significant
growth in all geographies and customer segments, led in particular
by digital customers despite a still limited recovery from travel
and airlines, and by The Global Sales & Vertical go-to
market.
- Digital Services: Positive growth
with a varied performance per geography. In particular, Germany
showed a strong recovery in both SMBs and large retailers while the
situation was softer in Belgium.
Merchant Services continued to support merchants
in their digitization plans. In the airline sector in particular
with the signing of a contract with Fly Play Airline to deliver a
full e-Com solution and with Porter Airlines to offer popular
digital wallets, namely WeChat Pay and PayPal, for bookings through
the airline’s website. Worldline will also provide an online
payment gateway to madeiramadeira (a Brazilian home goods company)
managing all domestic cards schemes.
In addition, after having been the payment
facilitator partner of DNA Payments, a European payment provider
based in the UK, Worldline will now support them for in-store
acquiring.
Finally, Worldline extended for 4 additional
years an existing 10-year contract for the white label delivery of
an acceptance gateway to a large financial institution in the
UK.
Financial Services
Financial Services’ revenue in Q3 2021 reached €
234 million, representing an organic growth of 5.0%, showing a
continued improvement of its revenue trend since Q4 2020. During
the quarter, the main performance drivers of each division
were:
- Issuing Processing: Ramp-up of new
projects signed in 2020 and higher volumes from the Commerzbank and
ComDirect contracts not fully compensating for lower build and
project activity.
- Acquiring Processing: Continued
positive trend on volumes recovery and the successful start of the
run phase of a new contract in France applied on a high comparison
basis led to a slight organic decline.
- Digital Banking: Continued strong
double-digit growth driven in particular by higher volumes and new
services in trusted authentication in a context of acceleration of
online transactions, coupled with a high level of project activity
over the quarter.
- Account Payments: Strong growth
benefiting from the ramp-up of the UniCredit contract combined with
a significant level of activity and increasing run volumes of large
contracts in Germany.
During the third quarter, Financial Services
continued its commercial development with the signature of a
long-term outsourcing contract with ABN AMRO to deliver a large
part of Worldline’s Financial Services portfolio, from Issuing and
Acquiring Processing to Clearing & Settlement for Instant
Payments and SEPA Credit Transfers as well as Digital Services.
Over the quarter, Worldline also continued to
enhance its fintech partners ecosystem with new partners such as
A3BC, a French fintech venture, to combine its biometric digital ID
and data storage protocol solution with Worldline Authentication
solution to protect mobile phones from intrusion. Worldline also
partners with ecolytiq, a Berlin-based fintech that offers a
Sustainability-as-a-Service solution based on the use of payment
transaction data to raise banking customers’ awareness of their
environmental footprint and encourage more sustainable
behaviors.
Mobility & e-Transactional
Services
Mobility & e-Transactional Services’ revenue
in Q3 2021 reached € 88 million, representing an organic growth of
10.9% led by the recovery on transactional revenue coupled with the
roll-out of several projects. By division, the main highlights
are:
- Trusted Digitization: Double-digit
growth driven by new projects and improving volumes in France,
higher volumes in Tax collection and digital healthcare in Latin
America, growing project activity on e-archiving solutions in
Germany, and new cash-to-invoice solutions sold in the Brexit
context.
- e-Ticketing: Very strong growth
driven by the robust pick-up in the transportation sector in Europe
as well as higher fare collection in Latin America, coupled with a
number of development projects in the UK and in France.
- e-Consumer & Mobility: Robust
performance thanks to strong momentum in Connected Living &
Mobility solutions and strong commercial dynamic for Contact
solutions compensating for non-reproductible project activity on
eHealth cryptographic solutions.
The commercial activity of Mobility &
e-Transactional Services was particularly strong during the third
quarter with several contract renewals in the Transport/Ticketing
sector such as with the Rail Safety & Standards Board in the
UK. Worldline also renewed for 3 years its contract with Thalys
consisting in delivering the on-board payment and control solution
for Train Managers, including the upgrade to the latest payment
solutions.
Finally, answering post-Brexit customs
challenges and with its Credit-as-a-Service (CaaS) solution,
Worldline is contributing to the launch of a digital solution which
will offer UK businesses an easy, cost-effective way to submit
customs declarations for importing goods from the EU to Great
Britain.
Appendices
9M 2021 revenue
performance per Global Business Line
Worldline’s revenue organic evolution per Global
Business Line for the first nine months of 2021 was as follows:
In € million |
|
9M 2021 |
9M 2020* |
Organic change |
Merchant Services |
|
1,722 |
1,629 |
+5.7% |
Financial Services |
|
676 |
661 |
+2.2% |
Mobility & e-Transactional Services |
|
256 |
240 |
+6.5% |
Worldline |
|
2,654 |
2,530 |
+4.9% |
* At constant scope and exchange rates
Reconciliation of
Q3 2020
revenue at constant scope and exchange rates
with Q3 2020 statutory
revenue
For the analysis of the Group’s performance,
revenue for Q3 2021 is compared to Q3 2020 revenue at constant
scope and exchange rates. Reconciliation between the Q3 2020
reported revenue and the Q3 2020 revenue at constant scope and
foreign exchange rates is presented below (per Global Business
Lines):
In € million |
|
Q3 2020 |
Scope effects** |
Exchange rates effect |
Q3 2020* |
Merchant Services |
|
270 |
+314 |
-0 |
585 |
Financial Services |
|
224 |
-1 |
+0 |
223 |
Mobility & e-Transactional Services |
|
78 |
- |
+1 |
79 |
Worldline |
|
573 |
+313 |
+1 |
887 |
* At constant scope and September 2021 YTD
average exchange rates** At December 2020 YTD average exchange
rates
Scope effects are related to the consolidation
of Ingenico, and to a lesser extent of GoPay.
Conference call
The Management of Worldline invites you to an
international conference call on the Group third quarter revenue,
on Tuesday, October 26, 2021 at 7:15 pm (CEST – Paris).
You can join the webcast of the conference:
- on worldline.com, in the Investors
section
- by smartphones or tablets through this
link
- by telephone with the dial-in:
United Kingdom (Local): |
+44 (0) 8444 819 752 |
France, Paris (Local): |
+33 (0)1 70 70 07 81 |
Germany, Frankfurt (Local): |
+49 069 2222 2625 |
United States, New York (Local): |
+1 646 741 3167 |
Standard international: |
+44 (0)20 7192 8338 |
|
|
Confirmation code: 5584809 |
|
After the conference, a replay of the webcast will
be available on worldline.com, in the Investors section.
Forthcoming
events
- October 27,
2021 Investor
Day
- February 22,
2022 FY 2021
results
- April 27,
2022 Q1
2022 revenue
- 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
WorldlineWorldline [Euronext: WLN] is the European
leader in the payments and transactional services industry and #4
player worldwide. With its global reach and its commitment to
innovation, Worldline is the technology partner of choice for
merchants, banks and third-party acquirers as well as public
transport operators, government agencies and industrial companies
in all sectors. Powered by over 20,000 employees in more than 50
countries, Worldline provides its clients with sustainable, trusted
and secure solutions across the payment value chain, fostering
their business growth wherever they are. Services offered by
Worldline in the areas of Merchant Services; Terminals, Solutions
& Services; Financial Services and Mobility &
e-Transactional Services include domestic and cross-border
commercial acquiring, both in-store and online, highly-secure
payment transaction processing, a broad portfolio of payment
terminals as well as e-ticketing and digital services in the
industrial environment. In 2020 Worldline generated a proforma
revenue of 4.8 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’ behaviors. 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 2020
Universal Registration Document filed with the French Autorité des
marchés financiers (AMF) on April 13, 2021 under the filling
number: D.21-0303 and its Amendment filed on July 29, 2021 under
the filling number: D. 21-0303-A01.
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 2020 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. 2021
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.
1 Excluding TSS2 Subject to appropriate social
process3 Excluding TSS from January 1st, 20214 Excluding TSS mature
activity with a significantly higher conversion rate5 Mister
Bernard Bourigeaud's biography is in section G.2.3 of Worldline's
2020 Universal Registration Document.6 Subject to appropriate
social process7 Excluding TSS from January 1st, 20218 Excluding TSS
mature activity with a significantly higher conversion rate
- Worldline - Q3 2021 revenue - Press release
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