Worldline registers 10% Y/Y rise in revenues in Q3 2022
Provider of payment services Worldline SA (EPA:WLN) today announced its revenue for the third quarter of 2022.
Worldline’s Q3 2022 revenue reached € 1,158 million, representing a strong +10.0% organic growth. This achievement was notably reached thanks to the strong commercial dynamics in Merchant Services posting a +13.6% revenue organic growth, fuelled by market share gains and volumes growth.
Mobility & e-Transactional Services also contributed to growth with a positive underlying trend on a high comparison basis. Financial Services was up by +1.5%, a performance in line with the trajectory anticipated for the full year.
Card-based payment processing activities (Issuing Processing and Acquiring Processing altogether) posted a positive organic growth driven by good dynamics in Asia-Pacific as well as improved transaction volumes, mainly in Belgium and Finland, compensating for the impact of price concessions of renewed large contracts.
Account Payments delivered a soft organic growth with less project activity this quarter, but still good developments on the UniCredit contract, now in run phase.
Digital Banking was led by the continuing increase of authentications volumes related to e-commerce transactions due to enforcement of the PSD2 regulation, as well as authentication services, mainly in France.
As announced on October 3, 2022, Worldline completed the sale and contribution of about 85% of its Terminals, Solutions & Services (TSS) business line to Apollo Funds. The sale of the remaining circa15% is set to take place on January 1, 2023, in line with the contemplated timeline.
The standalone company now operates exclusively as Ingenico. The proceeds from this disposal allows Worldline to further accelerate its development and anchors the Group’s leadership in payments services. This transaction also encompasses the entry into a partnership agreement cementing the strategic and long-term relationship between Worldline and Ingenico over the next 5 years.
The total consideration for Worldline is based on a current fair enterprise value of c. € 2.3 billion under the terms of the transaction, including c. € 1.7 billion upfront value and up to € 0.9 billion in preferred shares. Net of the closing price adjustments and net of taxes, Worldline will receive in aggregate c. € 1.4 billion as net proceeds and will remain exposed to the future value creation of Ingenico through the preferred shares for an amount of up to € 0.9 billion (c. € 0.6 billion fair value at signing date).
In Q3 2022, Worldline significantly enriched its value proposition for both instore and online merchants, notably through the acquisition of a 40% stake in Online Payment Platform B.V. and 55% of SoftPos.eu.