By Mauro Orru
Shares of Worldline lost more than half of their value on Wednesday after the French payments company reported third-quarter revenue below analysts’ expectations and slashed its guidance for the year due to challenging macroeconomic conditions.
At 0820 GMT, Worldline shares traded 57% lower at EUR9.90.
The group posted revenue of 1.18 billion euros ($1.25 billion) for the third quarter, up 4.8% on year organically, led by growth at its core merchant services business. However, Citi analysts had forecast EUR1.22 billion in revenue, they wrote in a research note.
Jefferies analysts said Worldline’s performance showed its merchant services business had reckoned with the macroeconomic slowdown in Germany, which is Worldline’s largest end-market. Revenue at the unit rose 7.6% organically to EUR868 million, missing Jefferies’s EUR887 million forecast.
“After a solid start of the year, we now enter into a second semester where the macro environment deteriorates, in particular in Germany,” said Worldline Chief Executive Gilles Grapinet. “This evolution is reflected in our third-quarter performance despite satisfactory commercial developments in merchant services.”
Worldline now expects organic revenue growth of 6% to 7% for the year, down from a previous range of 8% to 10%. The group’s operating margin before depreciation and amortization should be stable in absolute value, or decline by about 150 basis points compared with 2022. Worldline had previously guided for an improvement of more than 100 basis points.
Write to Mauro Orru at [email protected]
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