The global payment
services provider Worldline has reported its full-year 2023 financial results
and outlined a business transformation plan to streamline operations. The
company said its revenue grew organically in 2023 to €4.61 billion 6%
compared to the previous year.
The significant net loss caused the stock market to react pessimistically to the company’s results, falling by more than 11% on the French exchange.
Worldline Reports 2023 Net
Loss of €817 Million
Growth was
driven by an increase of 8.9% in the Merchant Services division, while Financial
Services revenue declined 1.3%. Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) were flat at €1.11 billion. The company
was not able to achieve profitability and reported a net loss of €817 million,
impacted by a €1.15 billion goodwill impairment charge related to the Merchant
Services unit.
“After
a strong first semester and despite a positive commercial momentum in 2023,
Worldline’s second half was materially impacted by a gradual overall
macroeconomic and consumption slowdown in our core geographies,” said Gilles
Grapinet, the CEO of Worldline. “Despite further deterioration
macroeconomic observed during the fourth quarter, we could deliver our revised
guidance.” These words are also confirmed by the previous results for Q3, after which the company experienced a stock market crash.
[#FINANCIALRESULTS] Today, we published our FY23 results, in line with the guidance provided on October 25th, 2023.
Read the press release: https://t.co/SYxCGYsboB pic.twitter.com/rxbkKu4sVQ
— Worldline (@WorldlineGlobal) February 28, 2024
Worldline
said it is accelerating efforts to transform into a “leaner and more agile
organization” to strengthen growth and cash flow generation. As part of
this, it has launched an initiative called Power24 to streamline operations,
reduce costs and improve productivity.
Worldline’s Cautious 2024 Forecasts
Power24
will focus on consolidating technology platforms, adopting more agile
processes, simplifying the organizational structure and optimizing procurement
and sourcing. The program is expected to deliver €200 million in annual cost
savings by 2025, with the first €80 million to be achieved in 2024.
“2024
will be a pivot year to achieve this transition to a streamlined Group through
a reinforced focus and rigorous execution ,” Grapinet added.
Worldline vows to increase revenue by at least 3% this year as CEO Gilles Grapinet seeks to restore investor confidence in the payment company https://t.co/z2UVuggioD
— Bloomberg (@business) February 28, 2024
For 2024,
Worldline said it expects organic revenue growth of at least 3%, adjusted
EBITDA of at least €1.17 billion and free cash flow of at least €230 million.
It noted that the first half would face tough comparisons due to losing some
online merchant contracts. In the meantime, 7% of the company’s stake was acquired by Credit Agricole.
The company
said its medium-term ambition is to achieve mid to high single-digit organic
growth, steadily rising profitability from 2024 and a free cash flow conversion
rate approaching 50%. To achieve this, it is expanding its global footprint, recently obtaining a new Singapore license.
Worldline announced plans to reduce and reshape its Board of Directors as part of
improved governance. An international search is underway for a new Chairperson
to be appointed before the end of March.
“As
early as 2025, the Group will benefit from strengthened operational leverage
that will drive solid medium-term performance,” the CEO concluded.
The global payment
services provider Worldline has reported its full-year 2023 financial results
and outlined a business transformation plan to streamline operations. The
company said its revenue grew organically in 2023 to €4.61 billion 6%
compared to the previous year.
The significant net loss caused the stock market to react pessimistically to the company’s results, falling by more than 11% on the French exchange.
Worldline Reports 2023 Net
Loss of €817 Million
Growth was
driven by an increase of 8.9% in the Merchant Services division, while Financial
Services revenue declined 1.3%. Adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) were flat at €1.11 billion. The company
was not able to achieve profitability and reported a net loss of €817 million,
impacted by a €1.15 billion goodwill impairment charge related to the Merchant
Services unit.
“After
a strong first semester and despite a positive commercial momentum in 2023,
Worldline’s second half was materially impacted by a gradual overall
macroeconomic and consumption slowdown in our core geographies,” said Gilles
Grapinet, the CEO of Worldline. “Despite further deterioration
macroeconomic observed during the fourth quarter, we could deliver our revised
guidance.” These words are also confirmed by the previous results for Q3, after which the company experienced a stock market crash.
[#FINANCIALRESULTS] Today, we published our FY23 results, in line with the guidance provided on October 25th, 2023.
Read the press release: https://t.co/SYxCGYsboB pic.twitter.com/rxbkKu4sVQ
— Worldline (@WorldlineGlobal) February 28, 2024
Worldline
said it is accelerating efforts to transform into a “leaner and more agile
organization” to strengthen growth and cash flow generation. As part of
this, it has launched an initiative called Power24 to streamline operations,
reduce costs and improve productivity.
Worldline’s Cautious 2024 Forecasts
Power24
will focus on consolidating technology platforms, adopting more agile
processes, simplifying the organizational structure and optimizing procurement
and sourcing. The program is expected to deliver €200 million in annual cost
savings by 2025, with the first €80 million to be achieved in 2024.
“2024
will be a pivot year to achieve this transition to a streamlined Group through
a reinforced focus and rigorous execution ,” Grapinet added.
Worldline vows to increase revenue by at least 3% this year as CEO Gilles Grapinet seeks to restore investor confidence in the payment company https://t.co/z2UVuggioD
— Bloomberg (@business) February 28, 2024
For 2024,
Worldline said it expects organic revenue growth of at least 3%, adjusted
EBITDA of at least €1.17 billion and free cash flow of at least €230 million.
It noted that the first half would face tough comparisons due to losing some
online merchant contracts. In the meantime, 7% of the company’s stake was acquired by Credit Agricole.
The company
said its medium-term ambition is to achieve mid to high single-digit organic
growth, steadily rising profitability from 2024 and a free cash flow conversion
rate approaching 50%. To achieve this, it is expanding its global footprint, recently obtaining a new Singapore license.
Worldline announced plans to reduce and reshape its Board of Directors as part of
improved governance. An international search is underway for a new Chairperson
to be appointed before the end of March.
“As
early as 2025, the Group will benefit from strengthened operational leverage
that will drive solid medium-term performance,” the CEO concluded.
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- Source: https://www.financemagnates.com//fintech/payments/worldlines-2023-revenue-up-but-817m-net-loss-weighs-on-results/
