Press
Release |
Paris,
22 January 2019 |
|
Ingenico Group (Euronext: FR0000125346 - ING), the
global leader in seamless payments, today announced its preliminary
2018 performance[1] and its action plan for the year 2019.
2018 performance: €485 million EBITDA[2]
/ 18.3% margin, versus €510 million expected
- €485 million EBITDA, representing an EBITDA margin of 18.3%
- Retail : operating performance in line with our
expectations
- Banks & Acquirers : unfavorable geographical and
product mix weighting on Group's EBITDA
- 5% organic growth in Q4'18, consistent with the Q3'18 rebound,
but short of our initial expectations
- Retail: 9% organic growth[3] (vs. +9% in Q4'17) fueled by SMB
activities (+20%)
- Banks & Acquirers: 1% organic growth (vs. +12% in Q4'17) in
a challenging environment in EMEA
- Revenues of €2,643 million, up 5% on a reported basis and up 2%
on a comparable basis
- 2% organic growth in 2018
- Retail: 8% organic growth, of which 11% in payment services,
with an acceleration in H2'18
- Banks & Acquirers: 4% organic decline of which 21% decline
in EMEA with a dynamic softer than expected and impacted from the
ongoing consolidation headwind effects
- Adjusted FCF[4] conversion rate of 55%, above the 40-45%
guidance
- Net debt / EBITDA ratio of 3.15x, slightly above the c.3.0x
guidance
Action plan for 2019:
- Banks & Acquirers: commercial turnaround and manufacturing
optimization facilitated by a global cost savings plan
- Retail: Investments acceleration within the most profitable
segments and integration of BSPayone and Paymark
- Optimization of Group support functions
2019 financial guidance to be communicated on
February 12th, 2019
Nicolas Huss, Chief Executing Officer of Ingenico
Group, commented: « In 2018, Retail grew significantly,
accelerating its growth in the second half of the year. This
performance confirms the relevance of our acquisitions and our
organic developments. However, Banks & Acquirers did not
perform as expected which prevents us from achieving our 2018
guidance. Ingenico Group acknowledges these results and is
implementing action plans in order to improve its future
performance. In 2019, the Retail division will keep on growing. The
contribution of the PAYONE joint-venture will strengthen our
leading position in Germany, Austria and Switzerland, which are
high potential markets, while Paymark will complete our offering
within the Pacific region. Regarding Banks & Acquirers we are
implementing the cost reduction plan already
announced. »Nicolas Huss concludes: « On February,
12th, I will present our 2019 financial guidance for the Group and
will detail the ongoing action plans. »
Fourth quarter 2018 performance
In the fourth quarter 2018, revenues totaled €727
million, representing an increase of 5% on a reported basis,
including a negative foreign exchange impact of €17 million. On a
comparable basis, revenues was 5% higher than in the fourth quarter
of 2017.
The Retail business unit revenues reached
€364 million, up 12% on a reported basis, impacted by a negative
foreign exchange of €6 million. On a comparable basis, revenues
grew by 9% in the fourth quarter of 2018. Small & Medium
Businesses division has delivered a strong double digit organic
growth (+20%), driven by merchant gains, growth in acquiring
volumes and German turnaround. Global Online activities are up 8%
fueled by contracts ramp-up and new client gains. Enterprise
division, up 1% organically as expected, has seen its overall
performance impacted by a lower contribution from payment
acceptance solutions to large retailers, while in-store gateway
processing activities continue to grow.
During the last weeks of 2018, Ingenico Group has
not recorded the expected trajectory for Banks &
Acquirers business unit. Revenues reached €364 million, down 1%
on a reported basis, impacted by a negative foreign exchange of €11
million. On a comparable basis, revenues grew by 1% in the fourth
quarter of 2018. Performance has been lower than expected in EMEA
(21% organic decline) and in North America (13% organic
decline), while Latin America and Asia-Pacific regions came in line
with our expectations with +61% and +12% organic growth
respectively.
2018 operating performance
In a context of a lower growth within Banks &
Acquirers, Ingenico Group expects €485 million EBITDA for the year
2018 versus €510 million initially anticipated. The contribution
from the Retail business unit Retail came in line with our
expectations. The contribution of Banks & Acquirers business
unit was down, mainly impacted by the non-execution of contracts
factored in Q4'18, a different than expected product mix, mainly a
lower contribution from Axium, an unfavorable geographical mix and
a negative foreign exchange impact.
Furthermore, the Group has pursued a strict
financial discipline. The EBITDA conversion rate has reached 55%,
above the guidance of 40-45% announced in October 2018.
As of end 2018, Net debt / EBITDA ratio reached
3.15x, slightly above the c.3.0x guidance
2019 action plan
In light of the 2018 performance, Ingenico Group is
implementing the required action plans. The Banks & Acquirers
business unit will be optimized, including in particular a cost
savings program as well as a commercial turnaround. Group support
functions will be optimized as well. Regarding the Retail business
unit, investments will be accelerated within the fast growing
segments. The business unit will benefit from the integration of
BSPayone and Paymark.
The Group will communicate its financial guidance
for 2019 and detailed action plans during its full year 2018
results presentation on February 12th, 2019.
Conference Call
2018 performance and 2019 overview will be
discussed in a Group telephone conference call which will be held
on 22 January 2019 at 6.15pm Paris time (5.15pm UK time).
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 (0)20 7194 3759 (from other countries), with
the conference ID: 31380136#.
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 GroupIngenico 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 MarieVP Investor Relations & Financial
Communication laurent.marie@ingenico.com (T) / (+33) (0)1 58 01 92
98 |
InvestorsKevin WoringerInvestor Relations
ManagerKevin.woringer@ingenico.com(T) / (+33) (0)1 58 01 85 09
|
CommunicationStéphane GrandMedia
Communicationstephane.grand@ingenico.com(T) / (+33) (0)1 58 01 91
95 |
Upcoming events
2018 full year results: 12th February 2019
First quarter 2019 revenues: 23rd April 2019
EXHIBIT 1
Q4'18 and FY'18 organic performance
Key figures for the fourth quarter 2018
|
Q4 2017 Reported |
Q4 2017Pro forma* |
Q4 2018 |
€m |
% Change |
€m |
€m |
Comparable1 |
Reported |
Retail |
325 |
340 |
364 |
9% |
12% |
SMBs |
72 |
89 |
105 |
20% |
33% |
Global Online |
131 |
131 |
141 |
8% |
7% |
Enterprise |
122 |
120 |
118 |
1% |
-1% |
Banks & Acquirers |
367 |
369 |
364 |
1% |
2% |
EMEA |
159 |
158 |
125 |
-21% |
-27% |
Latin America |
49 |
49 |
69 |
61% |
43% |
North America |
50 |
50 |
44 |
-13% |
-15% |
Asia-Pacific |
111 |
114 |
126 |
12% |
13% |
TOTAL |
692 |
709 |
727 |
5% |
7% |
* Q4 2017 PF figures including acquisitions made during the
year at 100% |
|
|
Key figures for 2018
|
FY 2017Reported |
FY 2017Pro forma* |
FY 2018 |
€m |
% Change |
€m |
€m |
Comparable1 |
Reported |
Retail |
1,099 |
1,280 |
1,339 |
8% |
21% |
SMBs |
175 |
349 |
393 |
16% |
59% |
Global Online |
494 |
500 |
521 |
8% |
9% |
Enterprise |
431 |
432 |
424 |
2% |
2% |
Banks & Acquirers |
1,411 |
1,428 |
1,305 |
-4% |
-4% |
EMEA |
602 |
594 |
495 |
-16% |
-21% |
Latin America |
170 |
170 |
199 |
36% |
31% |
North America |
187 |
187 |
163 |
-9% |
-10% |
Asia-Pacific |
454 |
480 |
447 |
-4% |
2% |
TOTAL |
2,510 |
2,708 |
2,643 |
2% |
9% |
* 2017 PF figures including acquisitions made during the year
at 100% |
|
|
[1] Non audited figures
[2] EBITDA is not an accounting term; it is a
financial metric defined here as profit from ordinary activities
before depreciation, amortization and provisions, and before
share-based compensations
[3] On a like-for-like basis
[4] Adjusted free cash-flow from non-recurring
items (restructurings, M&A)