Half Year 2024 Worldline SA Earnings Call Transcript
Key Points
- Worldline SA (WRDLY) reported a 2.1% increase in first semester revenue, with 6.2% underlying growth in merchant services.
- Adjusted EBITDA remained stable at EUR414 million, demonstrating strong cost control.
- Free cash flow generation was prioritized, resulting in EUR82 million, or 16% cash conversion of adjusted EBITDA.
- Significant progress on the Power24 transformation plan, expected to deliver EUR220 million in run-rate cash cost savings by 2025.
- Successful launch of new products and partnerships, including a joint venture with Credit Agricole and strategic partnerships with Visa and Lidio.
- Visible slowdown in domestic consumption in core EU markets during Q2, impacting MSV dynamics.
- Financial Services division experienced a 1.5% decline due to earlier-than-expected re-insourcing of certain contracts.
- Reported net income group share was a loss of EUR29 million, impacted by a EUR174 million non-cash provision related to Power24 implementation.
- Significant intra-semester volatility in transaction volumes, particularly a very weak June.
- Updated full-year guidance reflects cautious stance due to macroeconomic uncertainties, with expected organic growth of only 2% to 3%.
Gentlemen, good morning. Thank you for attending today's Worldline con call on our first semester 2024 results. As usual, I'm with Marc-Henri Desportes, our Deputy CEO, and Gregory Lambertie, our group CFO.
This morning, we have issued our earnings press release announcing a good H1 performance despite a visible domestic consumption slowdown in many core EU markets of the group during Q2 after a more positive Q1.
Briefly, our first semester revenue increased by 2.1%, of which 6.2% underlying growth at merchant services, our adjusted EBITDA amounted to EUR414 million, broadly stable compared to 2023 as anticipated, and free cash flow was EUR82 million, i.e. 16% cash conversion of adjusted EBITDA.
In that still volatile macro context, we have set three very clear priorities for the management and the group for 2024. The focus on our 2024 road map execution on our group transformation, the focus on reinforcing our structural growth potential, and the focus on the strict management of our costs and free cash flow generation.
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