INGENICO GROUP: Q1 2016: A quarter of strong growth Strategic acquisition in Japan
(Thomson Reuters ONE) -
* Revenue of ?552 million, representing organic growth of 15%
* Growth across all regions and operational progress in the ePayments division
* Strategic acquisition in Japan
* Specified objectives for 2016:
* Organic growth(1) above or equal to 10%
* EBITDA margin[2] of c. 21%
Ingenico Group (Euronext: FR0000125346 - ING) announced today its revenue for
the first quarter of 2016.
Philippe Lazare, the Chairman and Chief Executive Officer of Ingenico Group,
commented: "Our performance in the first quarter highlights our Group's ability
to sustain a high growth rate. The figures are up in all of our Regions. Our
multi-local footprint continues to give us the competitive edge in Payment
Terminals. At the same time, our ePayments division is making rapid operational
progress, as demonstrated by an increasing transaction flow from strategic
customers. The division can therefore look forward to a return to double-digit
growth in the second half of the year.
In addition, we have just carried out two acquisitions. Think&Go NFC has brought
us greater opportunity for expansion in the field of connected objects and the
means to strengthen our omni-channel offering. And, now, Lyudia will enable
Ingenico Group to build up a solid presence in Japan and capture the market
growth driven by EMV migration, which is expected to begin in 2017. Both
acquisitions are an indication of how swiftly we are implementing our Strategic
Plan 2020.
On the basis of these promising developments, we can provide more specific
objectives for 2016. We expect revenue organic growth to exceed or equal 10% and
EBITDA margin to be around 21%."
--------------------------------------------------------------------------------
[1] On a like-for-like basis at constant exchange rates.
[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 expenses for shares distributed to employees and
officers.
Subsequent events
Strategic acquisition in Japan
The Group announced today the acquisition of 70% of Lyudia, japanese expert in
software development and already distributing Ingenico terminals in Japan.
BroadBand Tower Inc will keep 30% of Lyudia capital. This strategic move will
enable Ingenico Group to gain strong market shares in a high-barrier-entry-
market.
Acquisition of Think&Go NFC
On April 11, 2016, Ingenico Group announced the acquisition of Think&Go NFC, a
start-up provider of connected screens. Think&Go NFC and Ingenico Group designed
the first connected screens incorporating contactless payment technology, with
the result that digital advertising displays are turned into points-of-sale.
Revenue in Q1'16
+--------------------+---------+---------+--------------------------+
| | Q1 2016 | Q1 2015 | % change |
| +---------+---------+---------------+----------+
| | ?m | ?m | Comparable(1) | Reported |
+--------------------+---------+---------+---------------+----------+
| Europe-Africa | 193 | 168 | 17% | 15% |
+--------------------+---------+---------+---------------+----------+
| APAC & Middle East | 129 | 99 | 36% | 30% |
+--------------------+---------+---------+---------------+----------+
| Latin America | 45 | 55 | 2% | (18%) |
+--------------------+---------+---------+---------------+----------+
| North America | 74 | 63 | 17% | 17% |
+--------------------+---------+---------+---------------+----------+
| ePayments | 111 | 113 | (1%) | (2%) |
+--------------------+---------+---------+---------------+----------+
| Total | 552 | 498 | 15% | 11% |
+--------------------+---------+---------+---------------+----------+
In the first quarter of 2016, revenue totaled ?552 million, representing an 11%
increase on a reported basis, including a negative foreign exchange impact of
?20 million. Total revenue included ?388 million generated by the Terminals
business and ?164 million generated by Payment Services activities.
On a comparable basis(1), revenue growth was 15% higher than in the first
quarter of 2015, a result that included a 21% increase in Terminals and a 3%
increase in Payment Services.
The outstanding performance in the Terminals business was driven by rapid growth
in the US and Chinese markets and by particularly strong business in Europe
during the quarter. Moreover, as anticipated, Ingenico Group's performance in
Payment Services reflected a significant decrease in volumes from a customer's
collecting business, during the third quarter of 2015. Without that event,
Payment Serviceswould have shown 9% growth.
Performance for the quarter by geography, on a like-for-like basis and at
constant exchange rates, compared with Q1 2015, was as follows:
- Europe-Africa (up 17%): Growth was solid across the entire Region, but with a
favorable basis of comparison with 2015 and exceptionally high order levels in
mature markets. In those markets, the Group has maintained its leadership,
thanks to a range of products and services that respond perfectly to customer
needs. Business was particularly vigorous in the United Kingdom and the Nordic
countries, where the bulk of an equipment replacement cycle was under way in
early 2016.
In Greece, Ingenico Group has continued to benefit from the recently introduced
legal limit on cash withdrawals and has significantly increased its share of the
large-scale retail market. In Russia, the Group has become the leader and
revenue doubled once again after major contracts were won, most notably with
Sberbank in late 2015.
In-store payment services revenue has likewise continued to benefit from strong
dynamism driven by its increasing brand awareness, services range and commercial
organization. Most specifically, Ingenico Group has continued to register solid
growth among large retailers in Western Europe with its centralized solution for
managing transaction flows (Axis).
- Latin America (up 2%): Ingenico Group has continued to grow in the region,
despite Brazil's highly unfavorable macroeconomic situation. In Mexico, where
the Group's strategy of targeting major retailers is producing results, revenue
rose sharply. Another noteworthy development in the quarter was a resumption of
sales in Argentina, helped by the government's economic liberalization moves.
- Asia-Pacific and the Middle East (up 36%): Ingenico Group has continued to
record high growth in this geographic area. In China, the Group has confirmed
its market leadership, quarter after quarter. However, in the first quarter of
2016, the seasonal nature of its business worked to the Group's advantage thanks
to large orders placed in late 2015. Business has also remained buoyant across
the other markets in Asia. Ingenico Group has continued to expand in Southeast
Asia. In India, the market for the Group's offers still shows high growth,
driven by government initiatives to digitize the country's economy. In Turkey,
Ingenico Group has almost tripled its sales, capturing growth from deployment of
fiscal memory payment terminals.
- North America (up 17%): In the first quarter, the Group recorded high growth
in the United States (up 27%), as EMV migration accelerated in the medium-to-
small merchant segment and while Ingenico Group kept on winning over key
retailers.
Sales of EMV-compatible mPOS terminals were also quite strong.
Those developments in part reflected the first chargebacks that merchants who
had not yet made the changeover to EMV technology have to bear. At the same
time, Ingenico Group has made further operational progress with the aim of
gaining market share in the United States through a strategic focus on sectors
such as healthcare and hospitality.
- ePayments (down 1%): Performance was further affected by a decrease in
transaction volumes from one of the division's major customers during the third
quarter of 2015. A key change in the quarter was a pick-up in transaction flows
from strategic customers, compared to the end of 2015. IngenicoConnect, the
Group's new integration and payment page mobile-optimized solution, has been
fully deployed on the cross-border platform. In addition, Ingenico Group was
chosen by BNP Paribas to enrich its online payment solutions and thereby help
the bank's customers accelerate their international growth. The operational
progress achieved in these different areas should bring about a return to
double-digit growth for the ePayments division in the second half of 2016.
Outlook
In the first quarter, Ingenico Group continued to record strong growth, and the
business trend for the coming months is well oriented. Management can
confidently reaffirm its objectives for double-digit growth in the United
States. Growth will also remain strong in Asia, particularly in China, where
revenue growth will also be in double digits. In Latin America, the Group's
business should hold steady during the year, with growth in new markets
offsetting the slowdown in Brazil. Revenue growth in Europe should return to a
more normal level, but will remain strong. Lastly, the ePayments division can be
expected to return to double-digit growth in the second half of the year, thanks
to operational progress initiated in late 2015.
On the basis of these promising developments, Ingenico Group can provide more
specific revenue objective, and now targets organic growth exceeding or equal to
10%.
The Group is also maintaining its EBITDA objective at around 21%, reflecting a
stepped-up drive to develop and bring to market its latest offers, particularly
in ePayments.
Conference call
A conference call to discuss Ingenico Group's Q1 2016 revenue will be held on
April 26, 2016 at 6.00 p.m., Paris time. Dial-in number: 01 70 99 32 08 (French
domestic), +1 334 323 6201 (for the United-States) and +44 20 7162 0077
(international) with the conference code: 958250. The presentation will also be
available on www.ingenico.com/finance.
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
with the performance of Ingenico Group and its subsidiaries. These statements
are by their nature subject to risks and uncertainties as described in the
Ingenico Group registration document ("document de référence"). 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.
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.
Learn more at www.ingenico.com twitter.com/ingenico
Contacts / Ingenico Group
Investors Investors Communication
Stéphanie Constand Caroline Alamy Coba Taillefer
VP Investor Relations Investor Relations Manager External Communication
stephanie.constand(at)ingenico.com caroline.alamy(at)ingenico.com Manager
(T) / 01 58 01 85 68 (T) / 01 58 01 85 09 coba.taillefer(at)ingenico.com
(T) / 01 58 01 89 62
Upcoming events
Q1 2016 revenue conference call: April 26, 2016 at 6 p.m., Paris time
Annual Meeting of Shareholders: April 29, 2016
H1 2016 results: July 26, 2016
PDF VERSION:
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Source: INGENICO via GlobeNewswire
[HUG#2006915]
Unternehmensinformation / Kurzprofil:
Datum: 26.04.2016 - 18:00 Uhr
Sprache: Deutsch
News-ID 466588
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contact information:
Town:
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Kategorie:
Business News
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