(Boursier.com) — Worldline announces a 6% increase in its annual turnover to €4.61 billion in 2023, in line with market expectations (organic growth of +6%, including +8.9% in merchant services), while the group’s share of net income fell due to a depreciation for goodwill worth 1.15 billion euros linked to its merchant services activities. The group’s net loss thus amounts to 817 million euros in 2023, after a profit of 221 million the previous year.
The adjusted EBITDA (previously EBO) is 1,110 million euros, stable compared to 2022. The group reports 355 ME in cash flows, or 32% conversion rate of the adjusted EBITDA and 521 ME of normalized group share of net income, stable compared to 2022.
The 2023 annual results are therefore generally in line with the forecasts communicated by the group on October 25.
Management explains that the depreciation for goodwill which affected the group’s net income reflected “the change in industry valuations”.
This depreciation is “totally linked to the evolution of sector values and the stricter application to technical parameters in the accounting and non-cash valuation of our assets”, explained the financial director of Worldline, Grégory Lambertie who added that “the group’s share of net income was relatively stable compared to 2022”.
2024 will be a year of “transformation to pivot towards a more optimized and more agile operating model”:
*’Power24′: acceleration of post-integration transformation;
*Continued strengthening of risk management;
*Focus on cash flow thanks to a rapid reduction in integration and rationalization costs excluding the strategic Power24 project which will end in early 2025;
*Continuation of growth initiatives with new products and partnerships (e.g. Joint Venture with Crédit Agricole);
*Tightened management on execution and transformation.
Quoting…
Outlook 2024
*At least 3% organic revenue growth;
*At least 1.17 billion euros of adjusted EBITDA;
*At least €230 million in free cash flow.
-Medium-term ambition:
*Mid-to-high single-digit organic revenue growth;
*Continuous improvement in adjusted EBITDA from 2024;
*Rapid progression of the conversion of adjusted EBITDA towards a rate of around 50%.
An ‘Investor Day’ is planned for the second half of 2024. Finally, the evolution of governance is considered “on track”.
Gilles Grapinet, CEO of Worldline, said: “After a solid first half and despite encouraging commercial momentum in 2023, Worldline’s performance in the second half was significantly affected by the macroeconomic slowdown and a drop in consumption in our main geographic areas as well as the impact of the termination of some of our online merchants, due to a stricter regulatory framework. Despite a strong macroeconomic deterioration observed during the fourth quarter, we were able to achieve the objectives revised which we communicated in October 2023. After a decade of market consolidation, we have built a highly competitive business with leading products and platforms, supported by a strong distribution network. Recognizing the evolution of our environment, the time has come to accelerate and complete our transformation towards an even more simplified and more efficient organization. Power24 is at the heart of this priority. This project builds on existing strategic initiatives and accelerates their scale-up. It is also designed as an essential lever to successfully overcome current challenges and to strengthen Worldline’s commercial and financial profile.
As a pan-European leader in digital payments, our mission is to continually adapt to changing industry and environmental trends. 2024 will be a pivotal year for achieving this transition to a streamlined Group, thanks to a strengthened focus, rigorous execution and the support of our talents and our strategic partners. From 2025, the Group will benefit from reinforced operational leverage which will promote solid performance dynamics in the medium term in terms of organic growth, profitability and cash generation.”