By Scott Kanowsky
Investing.com -- French payments firm Worldline SA (EPA:WLN) has reported a better than expected rise in second quarter revenue, thanks to strong performance at its merchant services business that was fueled by heavy demand for digital transactions.
The company posted a 13.5% jump in sales during the period to €1.08B, ahead of analyst expectations of €1.03B, driven in part by an uptick in large new business clients and successful upselling to existing customers. Worldline also confirmed its full-year guidance for organic revenue growth, operating margin before depreciation and amortization, and free cash flow.
Shares surged by more than 14% to near the top of the pan-European STOXX 600 after the results were released.
Worldline added that it was boosted by cost synergies linked to the integration of Ingenico, the rival company it agreed to buy in 2020 in a €7.8B cash and shares deal.
The group also recently closed three acquisitions of businesses in Italy, Australia, and Greece this year, as it looks to place itself at the "heart of the European payment ecosystem." In a statement, chief executive officer Gilles Grapinet said Worldline will continue to pursue "consolidation opportunities" going forward.
Spurring on this buying spree is Worldline's need to compete with peers like Fiserv (NASDAQ:FISV) and Global Payments (NYSE:GPN) in the U.S., with Grapinet stating that it is "important" for Europe to have a digital payments champion.