French payment tech firm Worldline outlook cut sends shares tumbling
Share price reaches new low, down 15.5%
Guidance cut on slow consumer spending, uncertain H2
Improvement in volumes since the start of July
Updates share move in paragraph 3, adds detail, context in 5
Aug 1 (Reuters) -Shares in Worldline WLN.PA tumbled to an all-time low on Thursday after the French payment technology group cut its 2024 outlook, citing a sharp decline in domestic consumption trends across Europe and uncertainty about a potential recovery.
The payments industry is under pressure as the post-pandemic boom wanes and competition intensifies.
Worldline shares dropped 15.5% to 8.87 euros by 0913 GMT, their lowest price ever, in what was the biggest daily decline among the members of the European benchmark STOXX 600 index .STOXX.
"The Group has observed a softer macroeconomic and consumption environment in the second quarter with a progressive slowdown of the merchant services volumes growth across all the geographies in Europe," the company said in the earnings statement.
Reuters reported in January that Worldline has enlisted bankers to develop a defence strategy to reassure shareholders and prevent a hostile takeover following a sharp decline in its share price.
The company, which processes digital transactions for clients ranging from merchants to government agencies, forecast full-year organic revenue growth of around 2% to 3% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.13 billion to 1.17 billion euros ($1.22 billion to $1.26 billion).
It had previously expected revenue growth at minimum of 3% and an adjusted EBITDA of "at least" 1.17 billion euros.
Worldline said it had taken extra measures to protect its annual cash flow target of 230 million euros.
"We have seen an improvement in volumes since the start of the month compared with the low point in June, which is rather encouraging," CEO Gilles Grapinet told journalists.
The group said its partnerships and restructuring programme, known as Power24, was progressing well, and raised by 10% its cost savings target for 2025 to around 220 million euros.
But the implementation of the first big-scale restructuring programme since its listing in Paris 10 years ago cost Worldline 174 million euros in non-cash provision in the first half of 2024, resulting in a net loss of 29 million euros over the period.
($1 = 0.9252 euros)
Reporting by Dagmarah Mackos in Gdansk; Editing by Chizu Nomiyama and Milla Nissi
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
