INGENICO GROUP - Q3 2017: Acceleration towards our 2017 objectives
(Thomson Reuters ONE) -
Press Release
Paris, 25(th) October 2017
* Third-quarter revenue of ?597 million
* Up 6% on a comparable basis[1]
* Up 5% on a reported basis
* Acceleration towards our 2017 objectives
* Back-end loaded year after a confirmed steadiness in North America
* Double-digit growth in ePayments despite a tough comparison basis
* Resilience in Europe & Africa with growth fuelled by Eastern Europe
* Growth in Middle East and Chinese stabilisation offsetting Indonesian
contraction
* Bambora closing on track and expected during Q4
* Objective for 2017 reiterated
* Organic growth(1) c. 7%
* EBITDA(2) margin slightly above 20.6%
Ingenico Group (Euronext: FR0000125346 - ING), the global leader in seamless
payment, today announced its third-quarter revenues for 2017.
Philippe Lazare, Chairman and Chief Executive Officer of Ingenico Group,
commented: "The third quarter has shown gradual improvement in terms of dynamics
as expected. Our situation is becoming more normalised in North America and
stabilised in Brazil. Anticipating a back-end loaded semester as our pipeline is
full for the end of the year, we reiterate with confidence our objectives for
2017.
Since the beginning of 2017 we have continued to accelerate the development of
our payment service offers as illustrated by the acquisition of IECISA
Electronic Payment System to directly address the retail market and to
strengthen our leadership in Spain. In parallel, we are well on track to
integrate Bambora and we expect to close the transaction during Q4'17."
Third quarter key figures
+--------------------+----------+------------+--------------------------------+
| | Q3 2016 | Q3 2016 | Q3 2017 |
| | Reported | Pro forma* +-----+--------------------------+
| | | | | % change |
| +----------+------------+ ?m +---------------+----------+
| | ?m | ?m | | Comparable(1) | Reported |
+--------------------+----------+------------+-----+---------------+----------+
| Retail | 251 | 252 | 259 | 4% | 3% |
+--------------------+----------+------------+-----+---------------+----------+
| Banks & Acquirers | 319 | 323 | 338 | 7% | 6% |
+--------------------+----------+------------+-----+---------------+----------+
| Total | 570 | 574 | 597 | 6% | 5% |
+--------------------+----------+------------+-----+---------------+----------+
| Europe & Africa | 224 | 224 | 235 | 4% | 5% |
+--------------------+----------+------------+-----+---------------+----------+
| APAC & Middle East | 115 | 119 | 118 | 8% | 3% |
+--------------------+----------+------------+-----+---------------+----------+
| Latin America | 44 | 44 | 48 | 10% | 8% |
+--------------------+----------+------------+-----+---------------+----------+
| North America | 62 | 62 | 56 | -5% | -9% |
+--------------------+----------+------------+-----+---------------+----------+
| ePayments | 126 | 126 | 141 | 10% | 12% |
+--------------------+----------+------------+-----+---------------+----------+
| Total | 570 | 574 | 597 | 6% | 5% |
+--------------------+----------+------------+-----+---------------+----------+
* including the previous year acquisitions on a pro forma basis
Third quarter 2017 performance
In the third quarter 2017, revenue totalled ?597 million, representing a 5%
increase on a reported basis, including a negative foreign exchange impact of
?18 million. Total revenue included ?390 million from Terminals and ?207 million
from Payment Services.
On a comparable basis, revenue was 6% higher than in the third quarter of 2016,
including a 3% increase in Terminals and an 11% increase in Payment Services.
Within our new organisational framework, the Banks and Acquirers Business Unit
posted a revenue of ?338 million, an increase of 6% on reported figures and
including a negative foreign exchange impact of ?9 million. The activity
performed well this quarter, increasing by 7% on a comparable basis, thanks to
our solid leadership, local initiatives favouring electronic payments and a
range of products dedicated to our clients, offering value added services.
The Retail Business Unit reported a revenue of ?259 million, an increase of 3%
on reported figures including a negative currency impact of ?9 million. On a
comparable basis, revenue was up 4%, driven by In-store services in Europe, the
progressive ramp up of our omnichannel offer and the continuous dynamic of
ePayments.
Compared with Q3'16, the various divisions performed as follows on a like-for-
like basis:
- Europe & Africa (up 4%): Despite a very tough comparison basis, the
performance showed a very dynamic momentum fuelled by most of the countries. In
the Banks and Acquirers Business Unit, despite the PCI V1 to V3 migration that
is now behind us, western countries were very resilient, driven by a good
performance in France and Italy. Eastern European countries are a powerful
growth engine, especially in Russia, benefiting from the cash transactions to
electronic payment shift.
In the Retail Business Unit, the in-store activities continued their strong
performance driven by the dynamic of the Axis platform. Ingenico Group is
increasingly solicited on pan-European deals to provide global solutions
integrating both hardware and payment services or omnichannel solutions. In
order to strengthen our position in Europe, Ingenico Group has recently
announced the acquisition of IECISA Electronic Payment System, enabling the
Group to directly address the Spanish retail market.
- Asia-Pacific & Middle East (up 8%): In the Banks and Acquirers Business Unit,
the Chinese dynamic improved with the APOS (c. 330k units shipped during Q3'17)
partially offsetting the pricing pressure. India is normalising as expected
since no regulation regarding Biometric solutions has yet been implemented.
South East Asia is on a positive trend with the exception of Indonesia, as this
market is on a "wait and see" momentum due to regulatory changes.
In the Retail Business Unit, Turkey showed a steady performance driven by
Terminals with fiscal memory and associated services enabling the relevant data
to be transferred to the tax authorities.
- Latin America (up 10%): The vast majority of this region's operations come
under the Banks and Acquirers Business Unit. The quarter was still impacted by
the unfavourable macroeconomic situation in Brazil but recent indices seem to
highlight a slight recovery of the Retail market. This should lead to the end of
the cycle seen over the past two years, illustrated by an extended POS lifetime,
and see acquirers resume ordering going forward to renew their estate. Besides
Brazil, other countries in the division are very dynamic. In Mexico, the Group
is continuing with the deployment of Telium Tetra and benefitting from the
development of services dedicated to terminals estate.
- North America (down 5%): The quarter showed a mixed performance between
Canada, facing a strong comparable basis and the United-States stabilising.
The Canadian business faced a tough comparative basis mainly due to strong
orders last year. Despite that specific event, the country is evolving as
anticipated and we expect it to return to growth as early as Q4'17. The US
market is stable with a back-end loaded semester profile driven by significant
orders to come in Q4'17 as certain acquirers are expected to increase order
volumes in preparation for the new year. The activity continues to benefit from
the adoption of our mobile solutions from new merchants, as well as the ramp up
of the healthcare and the hospitality verticals through the contracts signed
with new customers such as Inova Healthcare, Darden and NCR Silver, the latter
having selected our mobile range of products for its SMB, Retail and Hospitality
solutions.
- ePayments (up 10%): The division, part of the Retail Business Unit, confirmed
a strong performance in line with its objectives despite a tough basis of
comparison. The investments made continued to pay off with the enhancement of
our infrastructure enabling the platforms to increase their stability and
improve customer satisfaction. As a result, the churn rate has continued to
improve throughout the quarter. In parallel, the transformation of Ogone's pure
gateway into a more integrated model is progressing rapidly, as reflected by
collecting volumes up 50% in Q3'17. Meanwhile, new customer wins enabled the
Group to maintain the positive dynamic, despite the tough comparison basis, with
clients such as Anantara, Allyouneed Fresh, Go Sport or Ryder Cup.
Outlook
Ingenico Group reiterates its 2017 objectives:
* A revenue growth around 7% on a comparable basis
* A slight increase of the EBITDA margin compared to 2016 (20.6%)
Conference Call
The third quarter 2017 revenue will be discussed in a Group telephone conference
call to be held on 25(th) October 2017 at 6.00pm Paris Time (5.00pm UK). The
call will be accessible by dialling 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: 962920. 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 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 realisation 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.
Stay in touch with us:
www.ingenico.com twitter.com/ingenico
For more experts' views, visit our blog.
Contacts / Ingenico Group
Investors Investors Communication
Laurent Marie Kevin Woringer Coba Taillefer
VP Investor Relations & Investor Relations Manager External Communication
Financial Communication kevin.woringer(at)ingenico.com Manager
laurent.marie(at)ingenico.com (T) / (+33) (0)1 coba.taillefer(at)ingenico.com
(T) / (+33) (0)1 58 01 85 09 (T) / (+33) (0)1
58 01 92 98 58 01 89 62
Upcoming events
Full year 2017 results: 22(nd) February 2018 after market
EXHIBIT 1
First nine-month key figures
+------------------+---------------+--------------+----------------------------+
| |9 months 2016 |9 months 2016 | 9 months 2017 |
| | Rep. | PF* +-----+----------------------+
| | | | | % change |
| +---------------+--------------+ ?m +-------------+--------+
| | ?m | ?m | |Comparable(1)|Reported|
+------------------+---------------+--------------+-----+-------------+--------+
|Retail | 744 | 744 | 775 | 3% | 4% |
+------------------+---------------+--------------+-----+-------------+--------+
|Banks & Acquirers | 960 | 973 |1,044| 7% | 9% |
+------------------+---------------+--------------+-----+-------------+--------+
|Total | 1,703 | 1,717 |1,819| 5% | 7% |
+------------------+---------------+--------------+-----+-------------+--------+
|Europe & Africa | 632 | 632 | 669 | 5% | 6% |
+------------------+---------------+--------------+-----+-------------+--------+
|APAC & Middle East| 377 | 390 | 420 | 12% | 11% |
+------------------+---------------+--------------+-----+-------------+--------+
|Latin America | 130 | 130 | 135 | -3% | 4% |
+------------------+---------------+--------------+-----+-------------+--------+
|North America | 210 | 210 | 184 | -13% | -12% |
+------------------+---------------+--------------+-----+-------------+--------+
|ePayments | 356 | 356 | 411 | 11% | 16% |
+------------------+---------------+--------------+-----+-------------+--------+
|Total | 1,703 | 1,717 |1,819| 5% | 7% |
+------------------+---------------+--------------+-----+-------------+--------+
* including the previous year acquisitions on a pro forma basis
EXHIBIT 2
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
client-focused organisation. The Group's reporting is structured around two
business units: Banks and Acquirers (B&A) and Retail. On top of that, the
geographical split has changed to better reflect the organisation of Ingenico
Group. From now on, Europe & Africa will include the Middle East (formerly
included in Asia Pacific & Middle East) and become EMEA. In parallel, the EBS
platform, that used to be reported in the Asia Pacific & Middle East region,
will now be part of ePayments.
To facilitate the reading of the Group's performance as of 1(st) January
2017, 2016 revenues are restated below, including, from 1(st) January 2016, the
acquisitions of the previous year ("pro forma 2016").
1. FORMER GEOGRAPHICAL REPORTING
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|In millions of euros|Q1'16|Q2'16|Q3'16|Q4'16|2016 |Q1'17|Q2'17|Q3'17|
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Retail | 235 | 257 | 251 | 267 |1,010| 243 | 273 | 259 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Banks & Acquirers | 317 | 324 | 319 | 342 |1,302| 351 | 355 | 338 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Total | 552 | 581 | 570 | 609 |2,312| 594 | 628 | 597 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Europe-Africa | 193 | 215 | 224 | 215 | 846 | 209 | 225 | 235 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|APAC & Middle East | 129 | 133 | 114 | 153 | 530 | 162 | 140 | 118 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Latin America | 45 | 41 | 44 | 42 | 172 | 44 | 44 | 48 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|North America | 74 | 74 | 62 | 66 | 276 | 52 | 76 | 56 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|ePayments | 111 | 119 | 126 | 133 | 488 | 127 | 144 | 141 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Total | 552 | 581 | 570 | 609 |2,312| 594 | 628 | 597 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
2. NEW GEOGRAPHICAL REPORTING
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|In millions of euros|Q1'16|Q2'16|Q3'16|Q4'16|2016 |Q1'17|Q2'17|Q3'17|
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Retail | 235 | 257 | 251 | 267 |1,010| 243 | 273 | 259 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Banks & Acquirers | 317 | 324 | 319 | 342 |1,302| 351 | 355 | 338 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Total | 552 | 581 | 570 | 609 |2,312| 594 | 628 | 597 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|EMEA | 209 | 236 | 237 | 229 | 911 | 228 | 242 | 256 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|APAC | 112 | 111 | 100 | 138 | 462 | 143 | 122 | 96 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Latin America | 45 | 41 | 44 | 42 | 172 | 44 | 44 | 48 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|North America | 74 | 74 | 62 | 66 | 276 | 52 | 76 | 56 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|ePayments | 112 | 120 | 127 | 134 | 493 | 128 | 145 | 142 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
|Total | 552 | 581 | 570 | 609 |2,312| 594 | 628 | 597 |
+--------------------+-----+-----+-----+-----+-----+-----+-----+-----+
3. NEW GEOGRAPHICAL REPORTING ON A PRO FORMA BASIS
+----------------------+----------+----------+----------+----------+---------+
| In millions of euros | Q1'16 PF | Q2'16 PF | Q3'16 PF | Q4'16 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 |
+----------------------+----------+----------+----------+----------+---------+
| EMEA | 209 | 236 | 237 | 229 | 911 |
+----------------------+----------+----------+----------+----------+---------+
| APAC | 117 | 115 | 105 | 136 | 474 |
+----------------------+----------+----------+----------+----------+---------+
| Latin America | 45 | 41 | 44 | 42 | 172 |
+----------------------+----------+----------+----------+----------+---------+
| North America | 74 | 74 | 62 | 66 | 276 |
+----------------------+----------+----------+----------+----------+---------+
| ePayments | 112 | 120 | 127 | 134 | 493 |
+----------------------+----------+----------+----------+----------+---------+
| Total | 556 | 586 | 574 | 607 | 2,323 |
+----------------------+----------+----------+----------+----------+---------+
--------------------------------------------------------------------------------
[1]On a like-for-like basis
[1]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.
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Source: INGENICO via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2017 - 17:40 Uhr
Sprache: Deutsch
News-ID 565268
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