Worldline posts 10.7% rise in revenues in 2022
Worldline SA (EPA:WLN), a global leader in payment services, today announced its 2022 annual results.
Worldline’s FY 2022 revenue reached €4,364 million, representing a strong 10.7% revenue organic growth, above the objective to reach 8% to 10% revenue organic growth in 2022. This achievement was reached by a solid growth in Merchant Services reflecting the widespread and rapid shift towards digital payments as well as the Group’s strong positioning following the acquisition of Ingenico.
The Global Business Unit represented 70% of the total Group revenue in 2022. Mobility & e-Transactional Services (8% of 2022 Group revenue) also contributed to growth, delivering a strong +7.3% organic growth over the year thanks to several major projects and the recovery of the public transport sector. Financial Services (22% of 2022 Group revenue) were up by +2.5% in 2022 with solid revenue flows partly compensating the temporary impact from the price decrease conceded by the Group for the renewals of historical large contracts of Equens end of 2021.
Reaching €1,133 million in 2022, the Group’s Operating Margin before Depreciation and Amortization (OMDA) was up by 15.7% at constant scope and exchange rates in 2022. It represented 26.0% of revenue, an organic improvement by +110 basis points, in line with the objective of the year.
Net income Group share from continued operations amounted to € 211 million, increasing by +10.3%. Normalized net income Group share (excluding unusual and infrequent items, net of tax) reached € 545 million, increasing by +23.8%.
Normalized basic EPS was up +23.4% to € 1.94 in 2022 compared to €1.57 in 2021. On a dilutive basis, it was up +22.9% to €1.88.
Free cash flow reached € 520 million in 2022, up by +25.5% compared to 2021, representing a 45.9% cash conversion of OMDA (free cash flow divided by OMDA), above the objective of the year to reach circa 45%.
Group Net debt amounted to €2,202 million at the end of the year, representing a Group leverage ratio at 1.9x OMDA. Decrease of Group net debt in 2022 resulted from the free cash flow generated over the year, the cash-in of c. €1.1 billion net proceeds of the TSS disposal as well as the cash-out for the acquisitions closed in 2022.
Including the additional €297 million net proceeds of the TSS disposal received on January 1st, 2023 as announced, the proforma net debt end of 2022 would be €1,905 million, representing a Group leverage ratio at 1.7x OMDA.
Gilles Grapinet, CEO of Worldline, said:
“In 2022, while facing significant and unpredictable global and geopolitical headwinds, Worldline reached or exceeded all its objectives for the year. Our particularly strong revenue growth and commercial momentum clearly demonstrate the full benefit of Ingenico combination, despite us being only half-way through our four-year integration plan. It also highlights improvement of our profitability rate and solid free cash flow generation, despite the inflationary environment.
In parallel to this strong operational performance, we executed our strategic roadmap with the disposal of TSS, simplifying our group structure and significantly deleveraging our balance sheet. We also continued to actively participate to the European market consolidation and to expand our Merchant Services business in attractive geographies. In line with our product strategy, we further enriched the Worldline value proposition through targeted acquisitions of technological companies on the marketplaces vertical and the micro-merchant segment.
Last, but not least, supported by our Trust 2025 program, we continued to make significant progress towards our 2025 targets in all CSR dimensions as is also reflected by tier-one external recognitions and ratings.
Based on this strong 2022 year, the Group reaffirms its 2024 ambition as well as its strategic project to establish itself as a premium global Paytech and the leading consolidator of the European payment industry.”