Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Worldline Shares Jump After Q2 Revenue Beat

Published 28/07/2022, 01:30 am
Updated 28/07/2022, 01:30 am
© Reuters.

© Reuters.

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.