Worldline Q3 revenue dips, aims for mid-single-digit growth in 2025

Worldline [Euronext: WLN], a prominent player in the payment services industry, disclosed its financial results for the third quarter of 2024. The company reported a slight decline in organic growth, with revenues totaling €1.16 billion, marking a -1.1% change. Analysts were looking for €1.17 billion.

Despite the downturn, Worldline's Merchant Services division experienced modest gains amidst a tough economic environment. The division's resilience in certain key regions was offset by the impact of terminated merchant contracts, which concluded at the end of the first quarter of 2024, and underperforming segments that are now subject to strategic management interventions.

The company's Financial Services sector faced a unique challenge due to a major client's M&A-driven re-insourcing, resulting in a one-time dip in performance. Nonetheless, this was juxtaposed against a backdrop of positive growth in Issuing services and significant achievements in Instant Payment.

Meanwhile, the Mobility & e-Transactional Services arm of Worldline enjoyed a robust phase, particularly in France, propelled by its distinctive offerings in Worldline Contact solutions.

Marc-Henri Desportes, CEO of Worldline, emphasized the company's ongoing commitment to rebound and refocus, with the core business remaining robust. He highlighted the implementation of the Power24 program, which is anticipated to optimize the company's cost structure by the onset of 2025.

Desportes also noted the strategic moves being made, including the introduction of embedded payments, the establishment of the new CAWL joint venture, and the recruitment of Paul Marriott-Clarke as the new head of Merchant Services.

In a move to streamline operations, Desportes declared Worldline's intention to divest non-synergistic peripheral activities, a decision made after a decade of active consolidation in the payments sector. This realignment is part of the company's broader strategy to enhance focus on its core competencies.

For the year 2024, Worldline reaffirmed its financial objectives, projecting an organic revenue growth of approximately 1%, an adjusted EBITDA around €1.1 billion, and a free cash flow in the vicinity of €0.2 billion. These targets reflect the company's confidence in its business model and strategic initiatives aimed at achieving sustainable growth in the forthcoming year.

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Source: Investing.com