(AOF) – Worldline posted for 2022 a net income Group share from continuing operations which amounted to 211 million euros, up +10.3%. Normalized net income Group share (excluding exceptional items, net of tax) amounted to 545 million euros, up +23.8%. Its Normalized Earnings per Share amounted to 1.94 euros in 2022, up +23.4% compared to 1.57 euros in 2021. On a diluted basis, it increased by +22.9% to 1.88 euros. Worldline’s 2022 revenue reached €4.36 billion, growing organically by +10.7%.
This turnover is above its annual objective of 8% to 10% organic growth. This performance was achieved thanks to the sustained growth in Merchant Services which reflects both the rapid and widespread transition to digital payments as well as the strong positioning of the Group following the acquisition of Ingenico.
Reaching €1.13 billion in 2022, the Group’s OMDA (Gross Operating Surplus) increased by +15.7% at constant scope and exchange rates. It thus represented 26% of sales, an organic improvement of +110 basis points, in line with the annual objective.
Gilles Grapinet, Chief Executive Officer of Worldline, said: “In 2022, although facing significant and unpredictable international and geopolitical challenges, Worldline met or exceeded all of its annual objectives. The particularly strong growth in our revenue business and our commercial momentum clearly demonstrate the full benefit of the combination with Ingenico while we are only halfway through our four-year integration plan.This has also resulted in the improvement of our profitability rate. and by strong free cash generation, despite the inflationary environment.”
As for its 2023 objectives, Worldline aims for organic revenue growth between 8 and 10%; more than 100 basis points of improvement in its OMDA margin compared to the estimated pro forma 2022; and free cash flow, or 46% to 48% OMDA conversion rate.
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Key points
– European number one in payment services and electronic transactions;
– Revenues of €3.7 billion centered on Europe and generated by 3 areas – merchant services (65%), financial services (25%), mobility and transactional web services (9%);
– Business model for a leading international Paytech, based on mastering the value chain of payment services, on a single and modular platform, on its presence with merchants and banks on a strong positioning on the lines services and on technological investments;
– Open capital with 2 strong positions –SIX Group (18.9% of voting rights) and BPI France (3.88%), Gilles Grapinet being CEO and Bernard Bourigeaud chairman of the 19-member board of directors;
– Financial situation under control with net debt reduced to €2.9 billion.
Challenges
– Vision 2024 strategy of sustained external growth aimed at annual revenue growth of 9 to 11%, operating margin around 30%;
– Innovation strategy broken down between the security of the group’s own information systems, incrementation and disruption: internally: Win network, Lit or Worldline Labs incubator, community of 300 experts, etc. / externally: partnerships and links with start-ups in the fields of trust services, customer experience and performance & intelligence / focus on inclusive solutions (African fintech InTouch, dedicated QR code in India, etc.) / open-innovation: integration into the technological platform of the most innovative providers –APMs, cryptocurrencies, BNPL…;
– TRUST 2025 environmental strategy: 20% reduction in CO2 emissions compared to 2020 / inclusion of sustainability criteria in solution offers / support for dedicated fintechs (the African InTouch);
– Expectation of new partnerships in Italy and India and pursuit of fintech acquisitions;
– Integration of the merchant services activities (20% of the local market) of the Australian company ANZ, which is expected to generate €180 million in revenue per year and an operating margin of 20%.
Challenges
– Exposure of 1.5% of turnover to Russia and 1.5% to the Baltic countries, Poland, Hungary, Romania, Slovakia and Moldova;
– Sale to the Apollo funds of the Terminals, solutions and services activities, valued at €2.3 billion;
– Questions about an exit from the capital of SIX Group;
– 2022 objectives of an 8 to 10% increase in revenues, an operating margin of +27% and a debt effect reduced to 1.5.