Edenred posts 18.8% rise in Q1 profit, citing Reward Gateway purchase
April 18 (Reuters) -French vouchers and cards provider Edenred EDEN.PA reported first-quarter operating revenue that beat estimates on Thursday, citing benefits from the acquisition of Britain's Reward Gateway last year.
Edenred, which helps companies manage staff expenses and benefits and is known for its "Ticket Restaurant" vouchers, reported a first-quarter operating revenue of 625 million euros ($665.44 million), topping the 608 million euros forecast by analysts in a company-compiled consensus.
"The good performance of Reward Gateway, our new engagement platform, makes us confident in the success of its deployment in Belgium, France and Italy," Chairman and CEO Bertrand Dumazy said in a statement.
The impact of the Reward Gateway acquisition on growth should be limited this year, but a planned expansion of the software-as-a-service product to France, Italy and Belgium is expected to generate at least 50 million euros in additional sales for the group in 2027, the company said.
"In 2024, I can confirm that the Reward Gateway acquisition will be accretive," Finance Chief Julien Tanguy told journalists in a call.
Edenred acquired British company Reward Gateway, a provider of software that helps companies reward employees, in May 2023, and continues to seek new growth opportunities with two agreements signed in February and the full acquisition in March of the cards business of Italy's private fuel and mobility company with a portfolio of around 50,000 B2B clients.
Edenred's total revenue came in at 685 million euros for the January to March period, above the 666 million euros forecast in a company-compiled consensus.
Edenred's Employee Benefits and Engagement division, its biggest by sales, generated 408 million euros in operating revenue for the period, up 25.8%.
The company also confirmed the 2024 target announced in its Beyond 2022-2025 strategic plan, of organic EBITDA growth of more than 12%.
($1 = 0.9392 euros)
Reporting by Lina Golovnya and Dimitri Rhodes in Gdansk; Editing by Leslie Adler
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