PARIS (Agefi-Dow Jones)–The specialist in payment solutions in the world of work Edenred confirmed its objectives for 2024 on Thursday after recording sustained growth in the first quarter.
For the current year, the group continues to expect organic growth in its gross operating surplus (Ebitda) of more than 12% and a conversion rate of Ebitda into free cash flow of more than 70%, in accordance with to the objectives of its 2022-2025 strategic plan.
Edenred confirmed these prospects as its activity proved to be vigorous over the first three months of the year. In the first quarter, the group’s total revenue stood at 685 million euros, up 21.4% compared to the same period of 2023.
This increase includes positive scope effects of 5.2%, mainly linked to the acquisition of Reward Gateway, consolidated from May 2023, and unfavorable currency effects of 4.4%. At constant exchange rates and scope, total turnover increased by 20.5%.
Operating revenue reached 625 million euros, up 18.8% on a reported basis and 16.9% on a comparable basis. Other income almost doubled to 60 million euros, compared to 38 million a year earlier.
Operating turnover is generated by the issuance of prepaid service vouchers strictly speaking, while other income is generated by the investment of the group’s cash.
According to a consensus communicated by the company, analysts expected total revenue of 666 million euros and operational turnover of 608 million euros.
Accretive impact of Reward Gateway
Edenred’s financial director, Julien Tanguy, clarified during a conference call that the integration of Reward Gateway was progressing as planned and would have an accretive effect on earnings per share in 2024.
The British employee reward and engagement platform continued its commercial dynamism in the first quarter and will be deployed in Belgium, France and Italy in the second quarter, Edenred said.
The group also wishes to continue its penetration of the meal voucher market in France among small and medium-sized businesses (SMEs). The government’s plan to accelerate the dematerialization of these securities is “very good news for Edenred”, which is ahead in this area, underlined Julien Tanguy.
-François Schott, Agefi-Dow Jones; 01 41 27 47 92; [email protected] ed: VLV
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Dow Jones Newswires
April 18, 2024 01:01 ET (05:01 GMT)