INGENICO GROUP: First Quarter 2019 - A strong start to the year
24 April 2019 - 1:45AM
Press
Release |
Paris,
23rd April
2019 |
Revenue of
€753 million, up 12% on a comparable basis[1]
Retail accelerated to 11 % vs. 8 % in fourth
quarter 2018
B&A growth reached 12 % boosted by major
market share gain in Brazil
All other B&A regions in line with
expectations
2019 organic growth guidance raised to c. 6 % (vs.
4 % to 6 %)
EBITDA
& Free Cash Flow objectives confirmed
Ingenico Group (Euronext:
FR0000125346 - ING), the global leader in seamless payment, today
announced its revenue for the first quarter 2019.
Nicolas Huss, Chief Executive
Officer of Ingenico Group, commented: "The first quarter performance is strong
and a great start to 2019. The Group performance was fuelled by an
acceleration of Retail reaching 11 % and by an outstanding 12 %
growth of B&A, boosted by a major market share gain in Brazil
against competition, while the B&A operations in mature markets
(EMEA, North America) were fully in line with expectations. The
performance in Brazil exemplifies the B&A revival program that
we launched in November 2018, and which is a key component of the
Fit for Growth transformation that started two months ago. The team
is fully mobilized to optimize the shift of the B&A business
mix towards the emerging markets. To even further accelerate the
revival of B&A, I am glad to welcome Matthieu Destot, as the
new leader of this Business unit. Matthieu is great addition to the
team and is already focused at reinforcing the profitable growth
profile of B&A. The Retail team, led by Johan Tjärnberg,
delivered a strong performance in Q1. Payone teams are now fully
part of Ingenico and integration is progressing well. The three
Business Lines posted organic growth ranging from 11 % in Global
Online, benefiting from recent customer wins, to 15 % in SMB
embodying the quality of our Retail offer to Merchants and 20 % in
Enterprise, boosted by a strong performance of our Healthcare
vertical, of our Axis platform and early shipments in North
America. This Q1 performance enables us to raise our 2019 organic
growth to the upper end of the initial
guidance."
Key
figures
|
Q1 2018 Reported |
Q1 2018
Pro forma* |
Q1 2019 |
€m |
% Change |
€m |
€m |
Comparable1 |
Reported |
Retail |
302 |
389 |
435 |
11% |
44% |
SMBs |
70 |
70 |
79 |
15% |
13% |
Global
Online |
117 |
117 |
133 |
11% |
14% |
Enterprise |
67 |
76 |
91 |
20% |
37% |
Payone |
48 |
125 |
131 |
4% |
175% |
B&A |
280 |
280 |
318 |
12% |
14% |
EMEA |
114 |
114 |
110 |
-6% |
-4% |
Latin
America |
34 |
34 |
65 |
99% |
92% |
North
America |
30 |
30 |
31 |
-4% |
2% |
Asia-Pacific |
101 |
101 |
112 |
8% |
11% |
TOTAL |
581 |
669 |
753 |
12% |
29% |
*
2018 PF figures including acquisitions made during
the year at 100% |
|
|
First quarter 2019
performance
In the first quarter of 2019,
revenue totalled €753 million, representing a 12% increase on
a comparable basis. On a reported basis revenue was 29% higher than
in the first quarter of 2018 and included a positive foreign
exchange impact of €6 million as well as a positive contribution
from the newly consolidated BS Payone and Paymark.
The Retail
Business Unit reported a revenue of €435 million, showing an
increase of 11% over the quarter on a comparable basis. On a
reported basis, revenue increased by 44% during this first quarter
and included a positive foreign exchange impact of €2 million and
the positive contribution of BS Payone and Paymark. Compared with
Q1'18, the various activities performed as follows on a
like-for-like basis:
-
SMB (up
15%): The Business Line performed well this quarter, in line
with our expectations. As a reminder, the division no longer
recognizes the German assets that are now part of the Payone JV.
This performance has been driven by the continuous increase of the
merchant base, growing by more than 4,000 new clients per month, as
well as the continued performance of the SMB online full-service
offering. The acquiring volumes are still growing strongly even if
the pace is decelerating compared to last year after rebalancing
our risk portfolio. Restated following these changes, volumes were
growing at a similar pace to last year.
-
Global Online (up 11%): The quarterly performance is fully in line
with our expectations. The main drivers this quarter are derived
from emerging countries where the growth trajectory is accelerating
as in Latin America or in India where organic growth was over 30%
during the quarter. The deployment of new products and services is
on track and participates the growth of the Business Line, such as
the recent launch of the Global Online Russian capabilities. The
division has started this quarter to leverage the ramp up of
clients wins that occurred over the past 12 months. The Business
Line has continued to gain new clients during the quarter such as
Radial in the United States of America, Intcomex in Latin America
or fly365 in Asia.
-
Enterprise (up 20%): The Business Line experienced a very strong
quarter driven by both the transaction activities and the sale of
POS. As a reminder, with the exception of the healthcare activity,
all the German assets are now recognized under the Payone JV. The
targeted healthcare vertical in Germany has grown significantly
this quarter, benefiting from a local equipment incentive which
started in Q2'18. In North America, the Business Line had a strong
quarter after a market share win of a large US retailer. On the
transaction side, Axis, our omnichannel retail platform, continues
to show a double-digit growth, benefiting from a recurring business
model with processed volumes ramping up. In the meantime, our
Turkish activities are accelerating benefiting from our local POS
footprint and the ramp up of volumes processed by our fiscal
gateway, both are creating a more recurring revenue profile. In the
Pacific region, the integration of Paymark is on track with our
plan and is adding scale to our transaction activities
-
Payone (up
4%): The performance was in line with our expectations. The
integration of all the assets into the newly created entity is on
track and is already delivering positive outputs. Nevertheless, the
Business Line growth profile is not yet at its cruising speed,
expected to be reached in 2020. Moreover, the first months of
common activity show that both partners are working closely
together. The JV is very well perceived by clients, both on the
large enterprise segment and by the German saving banks. An
important milestone has already been reached by luring some saving
banks away from one of the main local competitors over to the JV.
While the integration progresses, growth trajectory of the JV shall
accelerate throughout the year.
During the quarter, B&A posted a revenue of €318 million, an
increase of 12% on comparable basis. On a reported basis the
activity increased by 14% and included a positive foreign exchange
impact of €4 million. Compared to Q1'18, the various regions
performed as follows on a like-for-like basis:
-
Europe, Middle-East &
Africa (down 6%): The dynamic was in line
with our expectation this quarter. The mature countries are
slightly declining while the emerging parts of the market are
ramping up. Restated from the Iran business we decided to phase out
from in Q2'18 the performance is stable. In parallel, we have
benefited from commercial successes in Russia and CIS countries,
Middle-East/Africa and an improving dynamic in Eastern Europe
(Greece) are fuelling the pipeline of projects over the next
quarters. We have received the first signs of interest from clients
in Russia regarding the APOS, our Android terminal range. Western
Europe is still impacted by the consolidation even if this impact
is beginning to fade.
-
Asia-Pacific (up 8%): The quarterly performance came in slightly
above our expectation following a stronger demand in China from the
large Chinese banks, third-party processors and a lower price
erosion than expected due to APOS shipments accounted for a greater
share of the overall business. South East Asia is progressing well
with Indonesia benefiting from a strong demand in APOS while
Thailand remains challenging as expected. India continues to grow,
though benefiting from a low comparison basis. In the meantime,
Japan keeps on ramping up in the eve of the EMV migration.
Australia, as a mature market, remained stable this
quarter.
-
Latin America (up 99%): The whole region remained very dynamic this
quarter driven mostly by Brazil but benefiting as well from good
traction in Mexico, Peru, Colombia or Chile. Ingenico Group
took advantage of a dynamic Brazilian market in which we invested
in production capacity. Our Direct Sales model is a clear
differentiator and continue to be deployed within new acquirers.
The Group has therefore won significant market share against
competition over the quarter. However, even if the Group is
benefiting from a very strong momentum, we remain cautious due to
the historically volatile Brazilian market.
2019
objectives
-
Revenue: The Group raises
its 2019 expectations to achieve an organic growth
of c. 6% compared to the 4% to 6% initial range. B&A
revenue is expected to grow by c. 2% (vs. flat initially) compared
to last year and Retail to achieve a double-digit organic
growth.
-
EBITDA (before application
of IFRS 16): The Group targets an EBITDA above
550 million. This target factors in c. €45 million
derived from the contribution of BS Payone and Paymark and net
savings of €20 million related to the Fit for Growth plan. The
group expects the Retail EBITDA above €270 million and the
B&A EBITDA at c. €280 million
-
Free cash-flow: The Group's
ambition is to reach a free cash-flow conversion
rate of c. 50% (before application of IFRS 16).
-
The Group estimates the impact of IFRS 16 to increase EBITDA by c. €30 million, with
no impact on Free cash-flow, thus reducing the
conversion rate to c. 47%
Audio Webcast
& Conference Call
The first quarter 2019 revenue
will be discussed in an audio webcast and a Group telephone
conference call to be held on 23rd April
2019 at 6.00pm Paris time (5.00pm UK time). The
presentation and audio webcast will be accessible at www.ingenico.com/finance. The call will be accessible
by dialling one of the following numbers:
+33 (0) 1 72 72 74 03 (from France),
+1 646 722 4916 (from the US) and
+44 20 7194 3759 (from other countries) with the
conference ID: 10709919#.
This press release contains forward-looking statements. The
trends and objectives given in this release are based on data,
assumptions and estimates considered reasonable by Ingenico Group.
These data, assumptions and estimates may change or be amended as a
result of uncertainties connected in particular to the performance
of Ingenico Group and its subsidiaries. These forward-looking
statements in no case constitute a guarantee of future performance,
and involve risks and uncertainties. Actual performance may differ
materially from that expressed or suggested in the forward-looking
statements. Ingenico Group therefore makes no firm commitment on
the realization of the growth objectives shown in this release.
Ingenico Group and its subsidiaries, as well as their executives,
representatives, employees and respective advisors, undertake no
obligation to update or revise any forward-looking statements
contained in this release, whether as a result of new information,
future developments or otherwise. This release shall not constitute
an offer to sell or the solicitation of an offer to buy or
subscribe for securities or financial instruments.
About Ingenico
Group
Ingenico Group (Euronext:
FR0000125346 - ING) is the global leader in seamless payment,
providing smart, trusted and secure solutions to empower commerce
across all channels, in-store, online and mobile. With the world's
largest payment acceptance network, we deliver secure payment
solutions with a local, national and international scope. We are
the trusted world-class partner for financial institutions and
retailers, from small merchants to several of the world's best
known global brands. Our solutions enable merchants to simplify
payment and deliver their brand promise.
Stay in touch with us:
www.ingenico.com
twitter.com/ingenico
For more experts' views, visit our
blog.
Contacts / Ingenico Group
Investors
Laurent Marie
VP Investor Relations &
Financial Communication
laurent.marie@ingenico.com
(T) / (+33) (0)1 58 01 92 98 |
Investors
Kévin Woringer
Investor Relations Manager
kevin.woringer@ingenico.com
(T) / (+33) (0)1 58 01 85 09
|
Communication
Hélène Carlander
PR Officer
helene.carlander@ingenico.com
(T) / +33 (0) 1 58 01 83 17 |
Upcoming events
Capital
Market Day: 24th April
2019
Annual General Meeting: 11th June
2019
2019 half-year results: 23rd July
2019
EXHIBIT
1
Following the closing of the combination of BS
Payone with the Ingenico DACH assets, the reporting evolves towards
greater transparency and making it easier to read the joint-venture
performance. In parallel, the former Ogone activities recognized in
Global Online and Enterprise are transferred to SMB and Bambora
Pacific is now consolidated in Enterprise.
1. FORMER
REPORTING ON A REPORTED BASIS |
|
|
|
In millions of euros |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
Retail |
302 |
328 |
345 |
364 |
1 339 |
SMBs |
88 |
98 |
103 |
105 |
393 |
Global
Online |
119 |
126 |
136 |
141 |
521 |
Enterprise |
95 |
105 |
106 |
118 |
424 |
B&A |
280 |
319 |
342 |
364 |
1 305 |
EMEA |
114 |
128 |
127 |
125 |
495 |
Latin
America |
34 |
38 |
58 |
69 |
199 |
North
America |
30 |
46 |
42 |
44 |
163 |
APAC |
101 |
107 |
113 |
126 |
447 |
TOTAL |
581 |
648 |
687 |
727 |
2 643 |
|
|
|
|
2. NEW
REPORTING ON A REPORTED BASIS |
|
|
|
In millions of euros |
Q1 2018 |
Q2 2018 |
Q3 2018 |
Q4 2018 |
2018 |
Retail |
302 |
328 |
345 |
364 |
1 339 |
SMBs |
70 |
78 |
82 |
84 |
314 |
Global
Online |
117 |
124 |
134 |
139 |
514 |
Enterprise |
67 |
76 |
75 |
91 |
309 |
Payone |
48 |
51 |
54 |
50 |
202 |
B&A |
280 |
319 |
342 |
364 |
1 305 |
EMEA |
114 |
128 |
127 |
125 |
495 |
Latin
America |
34 |
38 |
58 |
69 |
199 |
North
America |
30 |
46 |
42 |
44 |
163 |
APAC |
101 |
107 |
113 |
126 |
447 |
TOTAL |
581 |
648 |
687 |
727 |
2 643 |
|
|
|
|
3. NEW
REPORTING ON A PRO FORMA BASIS |
|
|
|
In millions of euros |
Q1 2018 PF |
Q2 2018 PF |
Q3 2018 PF |
Q4 2018 PF |
2018 PF |
Retail |
389 |
425 |
447 |
466 |
1 728 |
SMBs |
70 |
78 |
82 |
84 |
314 |
Global
Online |
117 |
124 |
134 |
139 |
514 |
Enterprise |
76 |
86 |
84 |
101 |
348 |
Payone |
125 |
137 |
147 |
142 |
551 |
B&A |
280 |
319 |
342 |
364 |
1 305 |
EMEA |
114 |
128 |
127 |
125 |
495 |
Latin
America |
34 |
38 |
58 |
69 |
199 |
North
America |
30 |
46 |
42 |
44 |
163 |
APAC |
101 |
107 |
113 |
126 |
447 |
TOTAL |
669 |
744 |
789 |
830 |
3 032 |
[1] On a like-for-like basis and at constant rate
First Quarter Revenue
2019
This
announcement is distributed by West Corporation on behalf of West
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: INGENICO via Globenewswire