Third quarter 2014 revenue

• Revenue: € 284.6 million, up +2.5%
• Net cash: € 184.3 million
• Free cash flow: € 36.5 million
  
  

Accelerated growth in Q3 compared to the first semester in Merchant Services and Mobility & e-Transactional Services

New distribution and partnership agreements signed

Objectives for 2014 confirmed

Revenue was € 284.6 million, representing an organic growth of 2.5 % compared to the third quarter of 2013. Free cash flow was € 36.5 million. Net cash totaled € 184.3 million.

Gilles Grapinet, Worldline CEO said: 
"We publish today Q3 revenue and free cash flow in line with our objectives for 2014. Through a disciplined execution of its plans, Worldline is well positioned to take advantage of the digital transformation momentum in payments. Four months after its listing, the Company starts benefitting from an increased industry visibility, which supports positively all dimensions of its growth strategy."

For the analysis of the Group's performance, revenue for the third quarter of 2014 is compared with the third quarter 2013 pro forma revenue at constant scope and exchange rates. Performance for the third quarter and for the first nine months of the year, on a like-for-like basis compared with last year, was as follows:

2014 Q3 revenue

(*) Proforma at constant scope and exchange rates

In the third quarter of 2014, Merchant Services & Terminals revenue was € 90.7 million, up +2.5%. The Global Business Line benefited from accelerated growth in Private Label Cards & Loyalty Services in the United Kingdom and in Commercial Acquiring. Commercial dynamism in Payment Terminal activity increased during the quarter with the signing of several partnerships and the win of some sizeable new clients.

Over the first nine months of 2014, revenue for Merchant Services & Terminals was € 272.7 million, up +1.5%. 

Revenue for Financial Processing & Software Licensing was € 99.0 million, slightly positive compared with Q3 2013. Licensing activities and Online Banking services grew, driven by project activities in Asia on the one hand and by an increased  volume in SEPA transactions on the other hand. As anticipated, revenue for Acquiring Processing was negatively impacted by the full effect on the quarter of the re-insourcing of one contract in France.

Over the first nine months of 2014, revenue for Financial Processing & Software Licensing was € 292.0 million, up +2.8%.


Revenue in Mobility & e-Transactional Services was € 94.8 million, up +5.0% compared to the third quarter of last year. As already reported during the first half, growth remained solid in e-Ticketing thanks to the activities in the UK transport industry and in automated fare collection in Latin America. The e-Consumer and Mobility business line also contributed to revenue growth in Q3, driven by projects in Germany and France and by sustained business volumes with Atos. Activity in e-Government Collection was positively oriented during the quarter thanks to new projects in France and higher transactional volumes in Latin America.

Over the first nine months of 2014, revenue for Mobility & e-Transactional Services was € 276.2 million, up +2.6%.

Commercial activity

Merchant Services & Terminals consolidated its position in Belgium by signing an agreement with a leading American Express cards affiliate. New name contracts were signed in On Line services and Commercial Acquiring in the media sector, respectively in France and in Belgium. The Payment Terminal business expanded its international reach through new distribution partnerships in the Middle-East, Africa and Europe and through an exclusive agreement with Powa to sell integrated point-of-sale systems in continental Europe and the Middle-East.

In Financial Processing & Software Licensing, several contract renewals were signed with tier one banks across Europe and India. Regarding new payment means, the Global Business Line won the processing contract for a large e-wallet associating banks and telecommunication operators. Paylib, processed by Worldline, has expanded its reach to Crédit Mutuel Arkéa.

In Mobility & e-Transactional Services, several large deals were won, including the provision of rail ticketing and operations products and services for the new franchise Govia Thameslink Railway Limited in the United Kingdom as well as for Thalys in Continental Europe. The Global Business Line also succeeded in adapting its e-ticketing services to the ferry industry with DML, a contract primed by Atos.

Full backlog totaled €1.6 billion, representing 1.4 years of revenue.

The weighted qualified pipeline remains healthy, with several large contracts expected to be signed in the next few quarters.

Free Cash Flow

Worldline free cash flow totaled € 36.5 million for the third quarter of 2014. After nine months, the free cash flow was € 93.9 million, completely in line with the objectives for the year of circa € 110 million.

2014 Objectives

On the basis of Q3 2014 revenue and the business perspectives for the fourth quarter of the year, the Group confirms the 2014 guidance issued for the IPO in section 13.2 of the Registration Document:

Revenue
The Group expects to reach 3 to 4% organic growth at constant exchange rates and scope compared to 2013, more likely at the lower end of the bracket.

OMDA
The Group has the objective to improve its OMDA margin by approximately 50 basis points as compared with 2013.

Free cash flow
The Group has the ambition to generate free cash flow of approximately €110 million.

Appendix

STATUTORY TO CONSTANT SCOPE AND EXCHANGE RATES RECONCILIATION

As described in the IPO Registration Document (the "Document de Base"), 2013 combined audited financial statements have been modified with the purpose to present Worldline financial statements as if the demerger from Atos had been carried out on January 1, 2013 and therefore as if Worldline had operated as a separate, self-managing listed group, as from that date (the "Pro forma Accounts" of the Document de Base).

Reconciliation between the third quarter 2013 combined revenue and pro forma at constant scope and foreign exchange rates is presented below.

Scope effect of €-4.9 million on revenue and €+0.1 million on OMDA, corresponds to the transfer to Atos, effective as of January 1, 2014, of the project portion of a contract in the United-Kingdom. Proforma effects were minor at €+0.1 million and reflect the Worldline net additional margin since the carve out from Atos and the listing. Last, exchange rate effects mostly reflect the depreciation of some Latin America and Asian currencies.

The revenue and OMDA figures presented in this press release are based on the 2013 proforma at constant scope and foreign exchange rates.

Conference call

Today, Thursday, November 6, 2014 at 06:15 pm (CET – Paris), CEO Gilles Grapinet, along with General Manager Marc-Henri Desportes, and Chief Financial Officer Bruno Vaffier will comment on Worldline's third quarter 2014 revenue

The audio conference numbers are:

The conference webcast and the presentation will also be available on our website at: worldline.com, in the Investors section.

Replay

A replay will be available until Saturday, December 6 2014. The dial-in numbers are as follows:

Forthcoming event

February 18, 2015    2014 full year results

Contact

Investor Relations
David Pierre-Kahn
+33 (0)6 28 51 45 96
david.pierre-kahn@worldline.com

Press
Caroline Crouch
+44 77 3331 0086
caroline.crouch@atos.net

About Worldline

Worldline [Euronext: WLN] is the European leader in the payments and transactional services industry. Worldline delivers new-generation services, enabling its customers to offer smooth and innovative solutions to the end consumer. Key actor for B2B2C industries, with 40 years of experience, Worldline supports and contributes to the success of all businesses and administrative services in a perpetually evolving market. Worldline offers a unique and flexible business model built around a global and growing portfolio, thus enabling end-to-end support. Worldline activities are organized around three axes: Merchant Services & Terminals, Mobility & e-Transactional Services, Financial Processing Services & Software Licensing. Worldline employs more than 7,200 people worldwide and generated 1.12 billion euros revenues (pro forma) in 2013. Worldline is an Atos company. worldline.com

Disclaimers

This document contains further forward-looking statements that involve risks and uncertainties concerning the Group's expected growth and profitability in the future. 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 Registration Document filed with the Autorité des Marchés Financiers (AMF) on May 6, 2014 under the registration number: I.14-027 and its update filed on August 7, 2014 under the registration number D.14-0273-A01.

Global Business Lines include Merchant Services & Terminals (in Belgium, France, Germany, India, Luxembourg, Spain, The Netherlands and United Kingdom), Financial Processing & Software Licensing (in Belgium, China, France, Germany, Hong Kong, India, Indonesia, Malaysia, Singapore, Spain, Taiwan and The Netherlands), and Mobility & e-Transactional Services (in Argentina, Austria, Belgium, Chile, France, Germany, Spain, and United Kingdom).

Revenue organic growth is presented at constant scope and exchange rates. 2014 objectives have been considered with exchange rates as of December 31, 2013.

This press release does not contain or constitute an offer of Worldline's shares for sale or an invitation or inducement to invest in Worldline's shares in France, the United States of America or any other jurisdiction.