First quarter 2015 revenue
- Revenue: € 286.6 million, up +4.0%
- Free cash flow: € 31.9 million, up +10.4%
Good momentum in international cross selling and innovative offerings drives sales’ growth
All 2015 objectives confirmed
Bezons, April 21st, 2015 – Worldline [Euronext: WLN], European leader in the payments and transactional services industry, today announces its revenue and free cash flow for the first quarter of 2015.
Revenue was € 286.6 million, representing an organic growth of +4.0% compared to the first quarter of 2014. Free cash flow was € 31.9 million, up +10.4%.
Gilles Grapinet, Worldline CEO said: “Worldline reports today its performance for the first quarter of 2015, reflecting a satisfying activity and a solid free cash flow generation, in line with its plan. I was particularly pleased to see the further deployment of our global offers across our geographies. While actively implementing our growth acceleration and transformation plans, we are fully prepared to take advantage of structural changes and consolidation trends of the European payment industry.»
Q1 2015 revenue performance by Global Business Line
|In € Million||Q1 2015||Q1 2014*||Organic growth %|
|Merchant Services & Terminals||93.5||90.9||+2.9%|
|Financial Processing & Software Licensing||98.3||96.2||+2.2%|
|Mobility & e-Transactional Services||94.8||88.5||+7.1%|
* Constant scope and exchange rates
During the first quarter of 2015, Merchant Services & Terminals revenue was € 93.5 million, up +2.9%. This was primarily driven by the confirmed recovery of the Payment Terminal business, as well as by the continued internationalization of the Commercial Acquiring. These favorable trends more than compensated for less project activity in Private Label Cards & Loyalty Services and e-commerce activities compared with the first quarter of 2014.
Revenue for Financial Processing & Software Licensing was € 98.3 million, +2.2% compared with Q1 2014. The main growth driver was Online Banking Services, notably due to higher volumes of transactions and new contracts signed in France. Growth in Payment Software Licensing activities increased, driven by revenue from new product implementations in Germany. As anticipated, Issuing Processing was almost stable. In Acquiring Processing, growth improved compared with the last quarter of 2014 but revenue remained negatively impacted by the effect of the re-insourcing of one significant contract in France.
Revenue in Mobility & e-Transactional Services was € 94.8 million, up +7.1% compared to the first quarter of last year. All three divisions contributed to the overall growth of the Global Business Line. E-consumer & Mobility reported double digit growth, thanks to positive trends in Connected Living activities in continental Europe. E-Ticketing activities grew strongly thanks to an increase in business volumes and project work in Latin America. Services to the UK transport industry also benefitted from more project work and an increase in rail ticketing volumes. Revenue for e-Government collection was up thanks to new contracts signed in the Benelux as well as to volume increase in Latin America.
Merchant Services & Terminals secured significant strategic long-term renewals in electronic payment acceptance, notably with Société Générale and with one of the largest e-commerce sites in France. The Global Business Line also contracted with a new client in India, Sodexo, for acceptance of closed-loop meal & gift card program.
In Financial Processing & Software Licensing, commercial highlights included the deployment of Worldline’s Trusted Authentication solutions for a French bank, the internationalization of the Group’s Fraud Management services to Bank of India, and an end-to-end online loan management service for Agence France Locale. Issuing Processing contracts with an Austrian bank and a large French bank were also renewed.
In Mobility & e-Transactional Services, new accounts were won with a product tracking system in the Nordics and the Baltics and a secured digital processing platform in healthcare for a French public organization. Contracts in e-Ticketing services were signed for new added-value products. Also, several large contract renewals were secured, notably for e-Ticketing services, and in healthcare in Argentina and France.
Full backlog totaled € 1.7 billion, representing 1.4 years of revenue, while the weighted qualified pipeline remains healthy.
Free Cash Flow
Worldline free cash flow totaled € 31.9 million for the first quarter of 2015, in line with the objectives for the full year of between € 120 million and € 125 million and up +10.4% compared with Q1 2014.
The Group confirms all the objectives for 2015 as stated in the February 18, 2015 press release:
The Group expects to achieve organic growth of its revenue, at constant scope and exchange rates, of between 4% and 5%.
The Group has the objective to increase the OMDA margin by approximately 50 basis points compared to 2014, in line with its 2017 objective.
Free cash flow
The Group has the ambition to generate free cash flow of between € 120 million and € 125 million.
Appendix: Revenue at constant scope and exchange rates reconciliation
|Scope and FX effects|
|In € Million||Q1 2014
* Constant scope and exchange rates
Exchange rate effects reflect mostly the depreciation of the Euro versus the British Pound and Asian currencies. There was no change in scope in Q1 2015 compared with Q1 2014.
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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 7,300 people worldwide and generated 1.15 billion euros revenues in 2014. Worldline is an Atos company. worldline.com
This document contains 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 the United Kingdom).
Revenue organic growth is presented at constant scope and exchange rates. 2015 objectives have been considered with exchange rates as of December 31, 2014.
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.