Worldline: The 2023 financial year affected by a depreciation of “goodwill”, the share declines

(Read billions and not millions §10, updated with stock prices)

(Reuters) – Worldline reported on Wednesday a 6% increase in its annual turnover, indicating however that the group’s net profit had fallen due to a depreciation for goodwill. a value of 1.15 billion euros linked to its merchant services activities.

On the Paris Stock Exchange, the stock fell 9.11% to 11.13 euros at 10:26 GMT, showing the biggest drop in the CAC 40.

The payment specialist indicated that the group’s net loss stood at 817 million euros in 2023, after a profit of 221 million euros the previous year.

The company indicated that the depreciation for goodwill which affected the group’s net profit 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 during a conference call with journalists.

Grégory Lambertie added that “the group’s net profit (was) relatively stable in comparison with 2022” and that the depreciation “has absolutely nothing to do with the German subject”.

Worldline’s market capitalization fell more than 50% in October, causing turmoil across the industry, after the company cut its full-year financial targets and announced a cost-cutting plan , citing the economic slowdown and increased scrutiny of money laundering risks in Germany.

Managing director Gilles Grapinet indicated that the group was still looking for a new president following the death of Bernard Bourigeaud at the end of 2023, and that he should be identified before the end of March.

Gilles Grapinet added that Worldline intended to reduce the composition of its board of directors to a maximum of 15 members, including two salaried directors.

The company said its turnover stood at 4.61 billion euros in 2023, a result in line with expectations, according to a consensus compiled by the company.

For 2024, Worldline now targets organic revenue growth of at least 3%, adjusted Ebitda of at least €1.17 billion and free cash flow of at least €230 million .

(Reporting Augustin Turpin; French version Camille Raynaud and Diana Mandiá, edited by Kate Entringer)

Copyright © 2024 Thomson Reuters

Source link -84