Q3’20 strongly supports 2020 guidance
Mid to high single digit full year organic decline confirmed
All 2020 objectives reiterated
Ingenico Group (Euronext: FR0000125346 - ING), the global leader in seamless payments, today announced its revenue for the third quarter 2020.
In the context of the Covid-19 crisis, the Group posted a solid performance in the third quarter, achieving 9% organic decline with a better than expected performance of Retail while B&A came fully in line with our expectations. The latest evolution of the health situation leads us to be cautious regarding the recovery curve of the fourth quarter which will be smoother than expected. Considering the dynamics of the last two quarters of the year, we confirm our scenario, a mid to high single digit organic decline in revenues for 2020.
During the first nine months, we have successfully pursued the execution of our Covid-19 action plan on top of the Fit for Growth plan and we confirm our objective to deliver a combined €135 million EBITDA savings impact in 2020. I would like to thank our teams for their proactive mobilization during this period and their full commitment to deliver quarter after quarter a very solid EBITDA performance despite the health situation. Finally, the combination with Worldline is now completed and integration is fully on track to create the undisputed European champion in payments.
In the third quarter of 2020, net revenue totalled €646 million, representing a 9% decrease on a comparable basis. On a reported basis net revenue was 14% lower than in the third quarter of 2019 and included a negative foreign exchange impact of €34 million and the effect of Healthcare France disposal.
Over the quarter, the Retail Business Unit reported a net revenue of €348 million, showing a decrease of 5% on a comparable basis. On a reported basis, net revenue decreased by 7% during the quarter and included a negative foreign exchange impact of €6 million and the effect of Healthcare France disposal. Compared with Q3’19, the various activities performed as follows on a like-for-like basis:
The B&A Business Unit posted a net revenue of €297 million, a 14% decrease on a comparable basis. On a reported basis, the activity decreased by 22% and included a negative foreign exchange impact of €28 million. Compared to Q3’19, the various regions performed as follows on a like-for-like basis:
The 2020 objectives communicated in April have been built on the three following scenarios structured around different recovery curves:
After nine months of activity, the Group’s business assumptions remain unchanged, i.e. a progressive pick-up in consumption while stores re-open depending on health constraints, a central scenario on travel with no recovery of international travel before 2021 and a gradual pick-up on regional travel, and some possible short and local re-confinements in the countries in which the Group operates.
Based on the recent performance with a third quarter better than expected driven by a post-confinement pick-up in activity, Ingenico anticipates for the fourth quarter a gradual recovery curve.
Despite this phasing, the overall group’s performance for the full year should remain in the mid to high single digit organic decline, confirming the expected growth scenario.
Based on this scenario, Ingenico Group confirms its strong and holistic action plan activated early March, aiming at adapting its cost structure, protecting profitability and preserving cash. Consequently, on top of the Fit for Growth plan that will deliver €35 million EBITDA impact in 2020, this C19 action plan implemented during Q1’20 will deliver €100 million added EBITDA impact in 2020.
Ingenico Group’s long-term growth drivers remain intact and we are convinced that the Group should come out of the current crisis even stronger with the engagement of all of the teams serving our clients for the benefit of all of our stakeholders.
The third quarter 2020 revenue will be discussed in an audio webcast and a Group telephone conference call to be held on 29th October 2020 at 7.15am Paris time (6.15am UK time). The presentation and audio webcast will be accessible at www.ingenico.com/finance. The call will be accessible by dialling one of the following numbers: +33 (0) 1 70 37 71 66 (from France), +1 212 999 6659 (from the US) and +44 20 3003 2666 (from other countries) with the conference password: Ingenico.
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.
Ingenico Group (Euronext: FR0000125346 – ING) is shaping the future of payments for sustainable and inclusive growth. As a global leader in seamless payments, we provide merchants with smart, trusted and secure solutions to empower commerce across all channels and enable simplification of payments and deliver customer promises. We are the trusted and proactive world-class partner for financial institutions and retailers, from small merchants to the world’s best-known global brands. We have a global footprint with more than 8,000 employees, 90 nationalities and a commercial presence in 170 countries. Our international community of payment experts anticipates the evolutions of commerce and consumer lifestyles to provide our clients with leading-edge complete solutions wherever they are needed.