Q3 2021 revenue1
in line with full-year trajectory
Robust organic growth of 8.3%
Q3 revenue: € 960 million
Divestment strategy of the payment terminal business validated2
Short term scenario: sale discussions progressing as per plan
2021 objectives for continued operations3
in line with full year guidance
At least 6% revenue organic growth
Above 200 bps OMDA margin improvement vs. 2020 proforma (23.1%)
Circa 42% OMDA conversion to FCF (stable versus 20204)
New governance in place
Chairman of the Board:
CEO:
Bezons, October 26, 2021 –
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,
New governance in place
As announced in the context of the acquisition of Ingenico and confirmed by
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
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,
- 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% | |
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 inBelgium .
Merchant Services continued to support merchants in their digitization plans. In the airline sector in particular with the signing of a contract with
In addition, after having been the payment facilitator partner of DNA Payments, a European payment provider based in the
Finally,
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,
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 inLatin America , growing project activity on e-archiving solutions inGermany , 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 inLatin America , coupled with a number of development projects in theUK and inFrance . - 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
Finally, answering post-Brexit customs challenges and with its Credit-as-a-Service (CaaS) solution,
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% | |
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 | |
573 | +313 | +1 | 887 |
* At constant scope and
** At
Scope effects are related to the consolidation of Ingenico, and to a lesser extent of GoPay.
Conference call
The Management of
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:
+44 (0) 8444 819 752 | |
+33 (0)1 70 70 07 81 | |
+49 069 2222 2625 | |
+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
+33 7 84 50 18 90
laurent.marie@worldline.com
+33 6 75 51 41 47
benoit.damecourt@worldline.com
Communication
+32 499 585 380
sandrine.vanderghinst@worldline.com
+33 7 72 25 96 04
helene.carlander@worldline.com
About
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.
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
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.
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
1 Excluding TSS
2 Subject to appropriate social process
3 Excluding TSS from
4 Excluding TSS mature activity with a significantly higher conversion rate
5
6 Subject to appropriate social process
7 Excluding TSS from
8 Excluding TSS mature activity with a significantly higher conversion rate
Attachment
Worldline - Q3 2021 revenue - Press release
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