Ecommerce-focused Worldline recorded 10% revenue growth, to €1.16bn, in Q3 2022. The company is continuing its expansion strategy, but has kept its full-year guidance the same – a move that no doubt surprised some investors.
Some of the key highlights from Worldline’s results:
- Revenue growth was driven by Worldline’s merchant services segment, which grew 13.6% to €828m, followed by mobility and e-transactional services growing 3.4% to €89m and financial services growing 1.5% to 241. Note: this growth is based on updated Q3 2021 figures at constant scope and exchange rates.
- Merchant services were fuelled by market share gains and volume growth. Worldline’s commercial acquiring business saw high-teens growth, driven by SMBs and large retailers. Payment acceptance also saw mid-single digits growth, driven partially by travel recovery after the company ceased Russian activities in March.
- Notably, Worldline didn’t update its guidance for FY22. It continues to expect revenue growth between 8% and 10% and a 1-1.5% improvement in its EBITDA margin. The company is well on the way to meeting its revenue objectives, expected to be around €4bn, with €3.18bn made in the first 9 months.
- Worldline’s share price fell by around 2% in the immediate wake of the earnings announcement, which some have speculated was due to their current guidance being confirmed rather than increased.
- During Q3, Worldline sold 85% of its Terminals, Solutions and Services business to investment group Apollo Funds, with the remaining 15% to be sold on 1 January 2023. With this business passing to Apollo-owned Ingenico, Worldline now wants to focus on its core payment service offering.
- The company is trying to boost its technology offering for instore and online merchants, having acquired a 40% stake in Online Payment Platform B.V. and 55% of SoftPos.eu, which allows users to turn their smartphone into a POS terminal.