(Update: comments from an analyst, stock price)
PARIS (Agefi-Dow Jones)–Worldline shares rose sharply on Thursday, as the electronic payments specialist recorded sales growth higher than analysts’ forecasts in the first quarter.
At the start of the morning, Worldline shares recorded one of the strongest gains in the SBF 120 index, rising 5.7% to 10.36 euros.
In the first quarter, Worldline achieved a turnover of 1.1 billion euros, an improvement of 2.5% year-on-year in organic data. This growth rate is higher than that of 1.8% expected by analysts, comments JPMorgan, which for its part was counting on an organic increase of 1% in Worldline’s quarterly sales.
This robust commercial dynamic can be explained by the good direction of merchant services activities, underlines JPMorgan in a research note sent to its clients and entitled “Finally the calm after the storm”. This division saw its revenues increase by 3.9% organically in the first quarter, to 787 million euros. Analysts anticipated growth of barely 1% for this division, underlines the American investment bank.
At the same time, financial services billings fell by 1.4%, to 225 million euros, while revenues from the mobility & transactional web services division increased by 0.7%, to 85 million. euros.
Objectives confirmed
“Building on these first quarter achievements, we fully confirm that we are well underway in our transition to a streamlined group thanks to a reinforced focus, rigorous execution and the combined support of our talents and our strategic partners,” commented Gilles Grapinet, the CEO of Worldline, quoted in a press release.
For this year, the group still expects organic revenue growth of at least 3%, free cash flow of at least 230 million euros and adjusted gross operating surplus (EBE) of 1.17 billion euros at least.
“The confirmation of these objectives and the quality of the performances displayed in the first quarter reassure the market, after a year 2023 which will have been catastrophic for Worldline,” observes an analyst based in Paris. Worldline shares fell 57.1% last year, as the group suffered disruptions on one of its payment platforms, its exit from the CAC 40 index and the sudden death of its president.
-Dimitri Delmond, Agefi-Dow Jones; +33 (0)1 41 27 47 31; [email protected] ed: VLV
(Alice Doré contributed to this article)
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Dow Jones Newswires
May 02, 2024 03:09 ET (07:09 GMT)
