(AOF) – Worldline has obtained payment institution approval from the Financial Conduct Authority (FCA). The payment specialist strengthens its position in the United Kingdom, and complements its current offering of acquiring solutions, acceptance and other ancillary services, to companies based in the United Kingdom and large international merchants operating on British soil .
Worldline “will bring together all activities for merchant customers under one entity in the UK and will invest significantly in its dedicated offering to its local customers”.
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Key points
– European leader in payment services and electronic transactions;
– Revenues of €4.4 billion focused on Europe and generated by 3 divisions – merchant services (70%), financial services (22%), mobility and transactional web services (8%);
– Business model for a leading international Paytech, based on control of the value chain of payment services, on a unique and modular platform, on its presence with merchants and banks on a strong positioning on the lines service and technological investments;
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Open capital with 2 strong positions – SIX Group (10.6% of shares and 18.4% of voting rights) and BPI France (4.4% and 7.6%), Gilles Grapinet being general manager and Bernard Bourigeaud chairing the 17-member board of directors;
– Financial situation under control with net debt reduced to €2.2 billion, i.e. leverage of 1.7, free self-financing of €545 million.
Challenges
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Ambition 2024 strategy: sustained external growth, annual growth of 9 to 11% in revenues and operating margin of around 30%;
– Innovation strategy based on the security of the group’s own information systems, incrementation and disruption, with a focus on the security of data centers and on property and a portfolio of 120 patents:
– internally: Win network, Lit or Worldline Labs incubator, community of 300 experts, etc.,
– externally: partnerships and links with start-ups in the areas of trust services, customer experience and performance & intelligence;
– focus on inclusive and open-innovation solutions: integration into the technological platform of the most innovative suppliers – APMs, cryptocurrencies, BNPL, etc.;
– TRUST 2025 environmental strategy:
– 20% reduction in CO2 emissions compared to 2020;
– inclusion of sustainability criteria in solution offers;
– support for dedicated fintechs (African InTouch);
– Continued strong commercial momentum;
– After the acquisitions of the Italian Axepta, the merchant services activities of ANZ in Australia (20% of the local market), those of Eurobank in Greece and Banco Desio, and the acquisition of a stake in Online Payment Platform (at 40%) and the fintech SoftPos.eu (at 55%), towards new opportunities in the consolidation of the European market.
Challenges
– Questions about an exit from SIX Group’s capital;
– Execution of the strategic partnership with Crédit Agricole on the retail market in France, operational from 2025 (€300 million in expected revenue);
– After 9.2% revenue growth in 1
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quarter, 2023 objectives: 8% to 10% increase in turnover and More than 100 basis points improvement in operating margin above 27%;
– Absence of dividend service for 3 years, priority given to the growth of the company.