Press Release |
Paris, 25th April 2018 |
Q1'18 performance in line with our expectations
Return to growth as early as Q2'18, with acceleration in the second half of the year
Double-digit growth in Retail and a soft growth in Banks & Acquirers in 2018
Full-year 2018 financial outlook reiterated: EBITDA[2] range of €545m - €570m
Ingenico Group (Euronext: FR0000125346 - ING), the global leader in seamless payment, today announced its revenue for the first quarter of 2018.
Philippe Lazare, Chairman and Chief Executive Officer of Ingenico Group, commented: "The beginning of the year was perfectly in line with our expectations. The Bambora integration and its end-to-end solutions opens up new market opportunities and reinforces the acceleration of the Group growth profile. The resilient trends that we foresee in Retail and the pipeline of projects of Banks & Acquirers allow us to expect a gradual improvement of the growth dynamic reflected in a positive organic growth as early as the second quarter. In this environment we are approaching the coming quarters with confidence and we reiterate our full-year 2018 guidance. Our organisation, our assets and our offer are up and running and allow us to accelerate towards our 2020 objectives."
Key figures for the first quarter 2018
Q1 2017 Reported | Q1 2017 Pro forma* | Q1 2018 | |||
€m | % Change | ||||
€m | €m | Comparable1 | Reported | ||
Retail | 243 | 299 | 302 | 7% | 24% |
SMBs | 33 | 81 | 88 | 13% | 169% |
Global Online | 111 | 118 | 119 | 11% | 7% |
Enterprise | 99 | 100 | 95 | -2% | -4% |
Banks & Acquirers | 351 | 354 | 280 | -15% | -20% |
EMEA | 142 | 137 | 114 | -14% | -20% |
Latin America | 40 | 40 | 34 | 0% | -16% |
North America | 37 | 37 | 30 | -7% | -18% |
Asia-Pacific | 132 | 140 | 101 | -22% | -23% |
TOTAL | 594 | 653 | 581 | -5% | -2% |
* 2017 PF figures including acquisitions made during the year at 100% |
First quarter 2018 performance
In the first quarter of 2018, revenue totalled €581 million, representing a 2% decline on a reported basis, including a negative foreign exchange impact of €40 million. On a comparable basis, revenue was 5% lower than in the first quarter of 2017. Adjusted from the impact of the Indian demonetization process and the European PCI V1 to V3 migration, revenue would have grown 3% on a comparable basis.
The Banks & Acquirers business unit totalled revenues of €280 million, down 20% on a reported basis, impacted by a negative foreign exchange impact of €22 million. On a comparable basis, revenue declined by 15% in the first quarter of 2018. Adjusted from the high comparison basis coming from the Indian demonetization process and the PCI V1 to V3 migration in Europe, revenue would have declined by 1% on a comparable basis. Over the quarter, Banks & Acquirers has continued its innovation effort, in particular with the launch of new Axium platform or the development of a PIN on Glass solution dedicated to micro merchants.
The Retail business unit revenues reached €302 million, up 24% on a reported basis, impacted by a negative foreign exchange impact of €18 million. On a comparable basis, revenue grew by 7% in the first quarter of 2018. Adjusted from the Indian demonetization process that has driven the performance over the first quarter of 2017, revenue would have grown by 9% on a comparable basis. The Bambora integration is going perfectly in line with our expectations, and we confirm the €30 million net synergies at EBITDA level to be generated by 2020.
Full-year 2018 outlook reiterated
In 2018, Ingenico Group expects an EBITDA of between €545 million and €570 million. The guidance factors in a negative impact from currencies of c. €25-30 million. Given the high comparison basis in the first half and the projects pipeline, the phasing of the year will result in a soft first half and a stronger second half.
Over the full year, our assumptions are based on a soft organic growth for the Banks & Acquirers business unit and a double digit organic growth in Retail. We expect a resumption of organic growth at group level in the second quarter thanks to an improving trend in the Banks & Acquirers business unit. The second half of the year will benefit from a higher growth driven by an acceleration of growth in the Retail business unit and an improvement in the Banks & Acquirers business unit.
Conference Call
The first quarter 2018 revenue will be discussed in a Group telephone conference call which will be held on the 25th April 2018 at 6.00pm Paris Time (5.00pm UK Time). The call will be accessible by dialling one of the following numbers: +33 (0)1 72 72 74 03 (from France), +1 646 722 4916 (from the US) and +44 (0)20 7194 3759 (from other countries), with the conference ID: 86931991#. A presentation will be available at www.ingenico.com/finance
This press release contains forward-looking statements. The trends and objectives given in this release are based on data, assumptions and estimates considered reasonable by Ingenico Group. These data, assumptions and estimates may change or be amended as a result of uncertainties connected in particular to the performance of Ingenico Group and its subsidiaries. These forward-looking statements in no case constitute a guarantee of future performance, and involve risks and uncertainties. Actual performance may differ materially from that expressed or suggested in the forward-looking statements. Ingenico Group therefore makes no firm commitment on the realization of the growth objectives shown in this release. Ingenico Group and its subsidiaries, as well as their executives, representatives, employees and respective advisors, undertake no obligation to update or revise any forward-looking statements contained in this release, whether as a result of new information, future developments or otherwise. This release shall not constitute an offer to sell or the solicitation of an offer to buy or subscribe for securities or financial instruments.
About Ingenico Group
Ingenico Group (Euronext: FR0000125346 - ING) is the global leader in seamless payment, providing smart, trusted and secure solutions to empower commerce across all channels, in-store, online and mobile. With the world's largest payment acceptance network, we deliver secure payment solutions with a local, national and international scope. We are the trusted world-class partner for financial institutions and retailers, from small merchants to several of the world's best known global brands. Our solutions enable merchants to simplify payment and deliver their brand promise.
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Contacts / Ingenico Group
Investors Laurent Marie VP Investor Relations & Financial Communication laurent.marie@ingenico.com (T) / (+33) (0)1 58 01 92 98 | Investors Kevin Woringer Investor Relations Manager kevin.woringer@ingenico.com (T) / (+33) (0)1 58 01 85 09 | Communication Coba Taillefer External Communication Manager coba.taillefer@ingenico.com (T) / (+33) (0)1 58 01 89 62 |
Upcoming events
2018 half year results: 25th July 2018
EXHIBIT 1
Following the evolution of its activities and in order to support its position as world leader in omnichannel payments, Ingenico Group has put in place a new client-focused organization. The Group's reporting is structured around two business units: Banks and Acquirers (B&A) and Retail.
The pro forma revenue for the period ended on 31st December 2017 integrates Techprocess, IECISA, SST and Bambora. It has been produced as if each of these acquisitions were integrated from 1st January 2017.
| |||||
In millions of euros | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | 2017 |
Retail | 243 | 272 | 260 | 325 | 1,099 |
SMBs | 33 | 35 | 35 | 72 | 175 |
Global Online | 111 | 127 | 124 | 131 | 494 |
Enterprise | 99 | 110 | 101 | 122 | 434 |
Banks & Acquirers | 351 | 356 | 337 | 367 | 1,411 |
EMEA | 142 | 147 | 155 | 159 | 602 |
Latin America | 40 | 37 | 44 | 49 | 170 |
North America | 37 | 55 | 45 | 50 | 187 |
APAC | 132 | 118 | 93 | 111 | 454 |
TOTAL | 594 | 628 | 597 | 692 | 2,510 |
2. NEW ORGANIZATONAL REPORTING ON A PRO FORMA BASIS | |||||
In millions of euros | Q1 2017 PF | Q2 2017 PF | Q3 2017 PF | Q4 2017 PF | 2017 PF |
Retail | 299 | 328 | 316 | 343 | 1,286 |
SMBs | 81 | 90 | 89 | 89 | 349 |
Global Online | 118 | 127 | 124 | 131 | 500 |
Enterprise | 100 | 112 | 103 | 122 | 438 |
Banks & Acquirers | 354 | 363 | 343 | 369 | 1,428 |
EMEA | 137 | 146 | 152 | 158 | 594 |
Latin America | 40 | 37 | 44 | 49 | 170 |
North America | 37 | 55 | 45 | 50 | 187 |
APAC | 140 | 126 | 101 | 114 | 480 |
TOTAL | 653 | 692 | 658 | 711 | 2,714 |
[1] On a like-for-like basis
[2] EBITDA is not an accounting term; it is a financial metric defined here as profit from ordinary activities before depreciation, amortization and provisions, and before share-based compensations.
[3] Adjusted free cash-flow from non-recurring items (restructurings, M&A)
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