INGENICO GROUP Q1 2017: Performance in line with expectations - 2017 objectives confirmed
(Thomson Reuters ONE) -
Press Release
Paris, 26(th) April 2017
Q1 2017:
Performance in line with expectations
2017 objectives confirmed
* Revenue: 594 million euros
* +5% on a like-for-like basis[1]
* +11% on a like-for-like basis 1 excluding the US (impacted by
unfavorable comparison basis)
* Excellent performance in Europe and Africa and in Asia-Pacific
* Continued positive momentum for ePayments activity
* New operational organization now in place. Going forward Group will report
on two business lines: Banks & Acquirers and Retail
* Q1 revenue on new reporting lines:
* Banks & Acquirers: 351 million euros (+6%)
* Retail: 243 million euros (+3%)
* Confirmed objectives for 2017:
* Organic growth of around 7%
* EBITDA Margin[2] slightly above that of 2016 (20.6%)
Ingenico Group (Euronext: FR0000125346 - ING) today announces its results for
the first quarter of 2017.
Philippe Lazare, CEO of Ingenico Group, commented "This year has begun with a
similar picture to the second half of last year, showing strong performances in
Europe and Asia Pacific balancing weaker performances in Latin America and North
America. ePayments has had a more normalised quarter, following an unusually
strong second half last year, although we are comfortable that this division
will continue to meet its medium term targets.
Our new customer-centric organisation, which comprises two operating segments
across the Group, is now in place to better address their needs. In our Banks
and Acquirers business unit, the new structure will allow for better
coordination between our central R&D function and our local organisations and
will allow our customers to differentiate themselves through our innovative
solutions. In our Retail business unit we will be coordinated in supporting our
customers as they continue to migrate to digital platforms, while promoting the
benefits of our omnichannel offer across the globe.
We are performing in line with our expectations and we look forward to the
future with confidence."
Revenue for Q1 '17
+---------------+-------------+------------+--------------+--------------------+
| | 1st Quarter |1st Quarter | 1st Quarter | % Change |
| | 2017 | 2016 pro |2016 reported | |
| | | forma* | | |
| +-------------+------------+--------------+-----------+--------+
| | M? | M? | M? |comparable1|reported|
+---------------+-------------+------------+--------------+-----------+--------+
|Retail | 243 | 235 | 235 | 3% | 3% |
+---------------+-------------+------------+--------------+-----------+--------+
|Banks & | 351 | 321 | 317 | | |
|Acquirers | | | | 6% | 11% |
+---------------+-------------+------------+--------------+-----------+--------+
|Total | 594 | 556 | 552 | 5% | 8% |
+---------------+-------------+------------+--------------+-----------+--------+
|ePayments | 127 | 111 | 111 | 12% | 14% |
+---------------+-------------+------------+--------------+-----------+--------+
|Europe & Africa| 209 | 193 | 193 | 8% | 8% |
+---------------+-------------+------------+--------------+-----------+--------+
|APAC & Middle | 162 | 134 | 129 | | |
|East | | | | 23% | 26% |
+---------------+-------------+------------+--------------+-----------+--------+
|Latin America | 44 | 45 | 45 | -17% | -2% |
+---------------+-------------+------------+--------------+-----------+--------+
|North America | 52 | 74 | 74 | -33% | -30% |
+---------------+-------------+------------+--------------+-----------+--------+
|Total | 594 | 556 | 552 | 5% | 8% |
+---------------+-------------+------------+--------------+-----------+--------+
* including the acquisition of Nera during the full year 2016
During the first quarter of 2017, the Group achieved a revenue of 594 million
euros, an increase of 8% on reported numbers, reflecting a positive increase of
9 million euros. Revenue increased to 411 million euros for Payment Terminals
and 183 million euros for Payment Services.
On a comparable basis1, the revenue was 5% over the first quarter of 2016, with
an increase of 2% for Terminals, and an increase of 13% for Payment Services.
Within new organizational framework, the Retail Business Unit reported a revenue
of 243 million euros, an increase of 3% on reported figures, and including a
positive foreign exchange effect of 1 million euros. On a comparable basis, the
increase in revenue was 3%, driven by the strong performances of ePayments and
India, but balanced by strong comparatives due to the replacement cycles that
occurred in the United States and in Europe in 2016.
The Banks and Acquirers Business Unit posted revenue of 351 million euros, an
increase of 11% on reported figures and including a positive foreign exchange
effect of 8 million euros. On a comparable basis revenue increased by 6%,
boosted by first equipment cycles in Asia and Latin America and despite
difficult market conditions in Brazil and in the United-States.
Regional performance during the quarter compared to Q1 '16 at constant scope and
exchange rates was as follows:
- ePayments (+12%): Following a particularly dynamic second half of 2016, the
ePayments division posted a growth performance in line with its strategic plan,
despite volatility seen in certain major accounts. The stability of its
platforms, the significant improvement in client satisfaction indicators (Net
Promoter Score) and low churn rates have confirmed the underlying quality of
Ingenio's solution. In general, investments continued during the quarter (fraud
prevention, evolution of the API Connect, new marketplace solution and real-time
conversion rates piloting) to allow the Group to accelerate its growth for the
long-term and to improve its margins in line with its medium term objectives.
- Europe-Africa (+8%): Payment Terminals registered a good performance in most
countries in the region despite strong prior year comparatives.
In Banks and Acquirers Business Unit, the Group benefitted from investments made
in preceding years in Eastern Europe where new regulations favourable towards
electronic payments have been put in place. Thanks to its leadership position in
mature markets, Ingenico Group is continuing to benefit from the replacement
cycle of PCI v1 terminals, notably in all the Nordic countries.
Alongside this, Payment Services, that are now part of the Retail Business Unit,
performed solidly during the quarter. Making use of its significant installed
base in Western Europe, Ingenico Group increased its recurring revenues deriving
from processing instore transactions. Managed volumes grew double digit on these
combined platforms.
- Latin America (-17%): The large majority of this region's operations come
under the Banks and Acquirers Business Unit. As expected, performance continues
to be impacted by unfavorable macroeconomic conditions in Brazil. However,
Ingenico Group registered strong growth in the other countries in the region and
most specifically in Colombia and Peru where an important contract was won with
one of the main acquirers in the country. Telium Tetra deployment is in
progress, in particular in Brazil and Mexico.
- Asia Pacific and Middle East (+23%): Thanks to its footprint across the
region, the Group has been able to capture the opportunities driven by the
introduction of regulations that support the growth of electronic payments in
this region.
In Banks and Acquirers segment, Ingenico Group benefited from the demonetization
process in India and has shipped since November 2016 more than 500,000
terminals. In Australia, Ingenico Group has witnessed strong momentum from the
introduction of Telium Tetra terminals. In China, as expected, the growth is
slowing down as the market is maturing but Landi consolidated its position with
successful sales of more than 250,000 aPOS during the quarter.
In Turkey, which is part of the Retail Business Unit, the Group continues to
benefit from the migration to terminals with fiscal memories.
- North America (-33%): As expected, performance in this region continues to be
impacted by higher prior year comparatives.
The US retail operation has increased its share of large customers: their
individual decision to replace or not has consequently a bigger impact on the
volatility of volumes, which are more difficult to predict. Nevertheless, thanks
to the quality of it the support and the range of its offers, Ingenico Group was
able to capture opportunities, notably with major retailers such as Jenny Craig,
and in new verticals such as unattended and healthcare.
In Banks and Acquirers Business Unit, the Group has been impacted by the
relaxation of the deadline for EMV migration in the United States and pursued
the development of its mobile payment terminals that are connected to tablets.
In Canada, the performance was solid, notably thanks to replacements in the
installed base of certain acquirers.
Outlook
Following a first quarter which was in line with its expectations, the Group
confirms its 2017 full year objectives for a revenue growth of around 7% (at
constant scope and exchange rates) and its EBITDA margin slightly increasing
compared to 2016 (20.6%).
Conference Call
The first quarter 2017 revenue will be discussed on a Group telephone conference
call which will be held on the 26th April 2017 at 6pm Paris Time (5pm UK, and
12.00PM US). The call will be accessible by dialing one of the following
numbers: +33 (0)1 70 99 32 08 (from France), +1 646 851 2407 (from the US) and
+44 (0)20 7162 0077 (from other countries) with the conference ID of: 961711. A
presentation will be available at 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 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.
Learn more at www.ingenico.com twitter.com/ingenico
Contacts / Ingenico Group
Investors Investors Communication
Laurent Marie Caroline Alamy Coba Taillefer
VP Investor Relations Investor Relations Manager External Communication
laurent.marie(at)ingenico.com caroline.alamy(at)ingenico.com Manager
(T) / 01 58 01 92 98 (T) / 01 58 01 85 09 coba.taillefer(at)ingenico.com
(T) / 01 58 01 89 62
Upcoming events
Conference call on Q1'17 revenue: April 26 2017 at 6pm (Paris)
Annual Meeting of Shareholders: May 10 2017
H1 2017 results: July 26 2017
APPENDICES
Following the evolution of its activities and in order to support its position
as world leader in omnichannel payments, Ingenico Group has put in place a new
organization that is focused on clients. The Group's reporting is structured
around two business units: Banks and Acquirers (B&A) and Retail.
To facilitate the reading of the Group's performance as of January
1, 2017, 2016 revenues are restated below, including, from January 1, 2016, the
acquisition of Nera, which was completed on August 31, 2016 ("pro forma 2016").
Pro Forma Divisional Revenue
(Integrating the Nera acquisition as of January 1(st), 2016)
+--------------------+----------+----------+----------+----------+-------+
|In Millions of euros|Q1 2016 PF|Q2 2016 PF|Q3 2016 PF|Q4 2016 PF|2016 PF|
+--------------------+----------+----------+----------+----------+-------+
|Retail | 235 | 257 | 251 | 267 | 1,010 |
+--------------------+----------+----------+----------+----------+-------+
|Banks & Acquirers | 321 | 329 | 323 | 340 | 1,313 |
+--------------------+----------+----------+----------+----------+-------+
|Total | 556 | 586 | 574 | 607 | 2,323 |
+--------------------+----------+----------+----------+----------+-------+
|ePayments | 111 | 119 | 126 | 133 | 488 |
+--------------------+----------+----------+----------+----------+-------+
|Europe & Africa | 193 | 215 | 224 | 215 | 846 |
+--------------------+----------+----------+----------+----------+-------+
|APAC & Middle East | 134 | 138 | 118 | 151 | 541 |
+--------------------+----------+----------+----------+----------+-------+
|Latin America | 45 | 41 | 44 | 42 | 172 |
+--------------------+----------+----------+----------+----------+-------+
|North America | 74 | 74 | 62 | 66 | 276 |
+--------------------+----------+----------+----------+----------+-------+
|Total | 556 | 586 | 574 | 607 | 2,323 |
+--------------------+----------+----------+----------+----------+-------+
Reported 2016 Revenue as shown under the new Group Organisation
(Integrating the Nera acquisition in the fourth quarter of 2016)
+--------------------+----------+----------+----------+----------+-------+
|In Millions of euros|Q1 2016 PF|Q2 2016 PF|Q3 2016 PF|Q4 2016 PF|2016 PF|
+--------------------+----------+----------+----------+----------+-------+
|Retail | 235 | 257 | 251 | 267 | 1,010 |
+--------------------+----------+----------+----------+----------+-------+
|Banks & Acquirers | 317 | 324 | 319 | 342 | 1,302 |
+--------------------+----------+----------+----------+----------+-------+
|Total | 552 | 581 | 570 | 609 | 2,312 |
+--------------------+----------+----------+----------+----------+-------+
--------------------------------------------------------------------------------
[1] At constant perimeter and exchange rates
[2] EBITDA is a non-accounting concept representing operating profit before
depreciation, amortisation and provisions, [and disregarding shares distributed
to employees and social funds]
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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
Unternehmensinformation / Kurzprofil:
Datum: 26.04.2017 - 17:40 Uhr
Sprache: Deutsch
News-ID 538559
Anzahl Zeichen: 18661
contact information:
Town:
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Kategorie:
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