Elettronica
INGENICO GROUP : Very strong business growth in the third quarter of 2014
Very strong business growth
in the third quarter of 2014
Ingenico Group (Euronext: FR0000125346 - ING) announced today its revenue figures for the third quarter of 2014.
Philippe Lazare, the Chairman and CEO of Ingenico Group, commented:
On September 30, Ingenico Group finalized the acquisition of GlobalCollect, a leading global online full service payment provider, after approval by the relevant regulatory and antitrust authorities.
This acquisition reflects the acceleration in the implementation of the Group's strategy on a global scale, and will enable Ingenico Group to continue to simplify payment for its customers, everywhere across the world and across all channels: in store, on line and mobile.
To date, 2,195,267 convertible bonds, representing approximately 33% of the convertible bond/OCEANE, were converted into 2,228,188 shares.
The Group reminds that all the remaining convertible bonds may be subject to an early repayment starting on January 15, 2015 . In that case, a total of 4,549,314 new shares would be issued. As of October 29, 2014 the share capital was composed of 56 110 633 shares.
In the first nine months of 2014, revenue totaled EUR1,084 million, representing an 8 percent increase on a reported basis, including a negative foreign exchange impact of EUR38 million . Total revenue included EUR903 million generated by the Payment Terminal business and EUR181 million generated by Transaction Services.
On a comparable basis , revenue growth was 19 percent higher than in the prior-year period, driven by double-digit growth in both segments. Performance in Payment Terminals (up 19 percent) was fostered by accelerated order deliveries in countries like Canada and Italy along with strong dynamism in the United States. Revenue growth in Transaction Services business increased by 3-point to 15 percent , thanks to good results for in-store and online payment solutions.
Since the start of the year, all regions have contributed to the Group's overall performance. In Europe-SEPA, Ingenico Group has been deploying its payment service strategy - in-store, on-line and mobile - through Ingenico Payment Services.
As anticipated, the Group has accelerated its growth in North America (up 62 percent) driven by Ingenico Group's active involvement with EMV payment solutions in the United States and delivery ahead of schedule of a large order for Moneris in Canada.
In fast-growing emerging countries, Ingenico Group has continued to enjoy strong revenue growth, confirming its leadership in such key markets as China and Brazil. The Group continues its expansion in other emerging markets through greater direct presence (particularly in Indonesia and Russia) and an increasingly dense commercial network, notably in the EMEA region.
In the third quarter of 2014, revenue totaled EUR 381 million, representing a 9 percent increase on a reported basis, including a negative foreign exchange impact of EUR1 million. Total revenue included EUR 318 million from the Payment Terminal business and EUR63 million from the Transaction Services.
On a comparable basis , revenue growth was 16 percent above Q3 2013, driven by 16 percent organic growth in both business segments. Ingenico Group's performance in Payment Terminals was fueled by ongoing deployment of its multi-local strategy around the world. Transaction Services revenue grew by 16 percent, thanks to strong business dynamics in all segments. Ingenico Group has continued to deploy new payment solutions for its customers to enable them to increase conversion rate on all channels and enhance consumer experience, as recently illustrated at Loewe (mobile checkout) and the FC Barcelona megastore (interactive self-service solutions).
Performance for the third quarter, by geography and on a like-for-like basis compared with Q3'13, was as follows:
- Growth was driven primarily by the deployment of the Group's strategy combining in-store, on-line and mobile payment, through innovative offers that enhance consumer experience (e.g., at Loewe, FC Barcelona). At the same time, Ingenico Payment Services has continued to sell its customers new services such as on-line fraud detection tools, and also to offer merchants more payment alternatives to generate new growth opportunities, as illustrated by the partnership with Yapital, a pan-European cashless cross-channel wallet.
- Ingenico Group has continued to achieve high growth rates in the region, leveraging its market leadership in China and its strategy for conquering Southeast Asia. The Group has won large orders in Indonesia thanks to its direct presence, while gaining further traction in other countries in the region, and most specifically in Singapore, and in Malaysia.
Ingenico Group's contrasted performance in the region reflects a lower business activity with Brazilian customers which should not last with expected return to double digit growth in Q4'14. The Group has strengthened its expansion elsewhere in the region, becoming the sole supplier of Banco del Bajio in Mexico and posting strong growth in Colombia and Peru through the development of 3G.
- Ingenico Group's accelerating growth in the region was driven mainly by business in the United States (up 90 percent), where the Group has continued to deploy secure EMV and NFC payment solutions, fostered this quarter by demand from Tier 1 retailers preparing for the festive season. Ingenico Group has also continued to provide independent merchants with secure solutions on a growing scale through partnerships with processors, distributors (ISOs). For example, the Group has expanded its global collaboration with Elavon in the United States with two key EMV initiatives, and entered into a partnership with CardConnect and FreedomPay to deploy point-to-point encryption solutions that accept EMV and NFC payments. In Canada, Ingenico Group has carried out most of the major order from Moneris initiated in the first quarter.
Ingenico Group has continued to achieve strong growth in EMEA through its expanded direct presence (particularly in Poland and Russia) and its increasingly dense distribution network in the region. In Italy, the Group has kept up deployment of payment solutions - terminals and mobile checkout - at a sustained pace in order to respond to new regulations requiring merchants to install electronic payment acceptance equipment. The Group has also forged ahead with its diversification strategy, deploying an end-to-end integrated payment solution at DKV service stations in Hungary.
- Ingenico Mobile Solutions has continued to expand in the United States and worldwide, as illustrated by its white-label offer to First Data in India and its partnership with Leapfactor in the United States, which facilitates integration of payment with customers' business applications.
During the first nine months of 2014, Ingenico Group achieved outstanding performance, in particular in its Payment Terminals business, thanks to accelerated deliveries, while increasing its shift towards Transaction Services. The Group expects business between the third and fourth quarters to be globally balanced as a consequence of early EMV deliveries in the United States and the seasonality of customer calls for tenders.
Accordingly, the Group now expects organic growth to exceed 15 percent - in line with the previously announced range of 14 to 16 percent. This should result in full-year reported revenue comprised between EUR1.465 billion and EUR1.475 billion.
In addition, the Group has raised its outlook for EBITDA margin, which is now expected to be between 22.5 and 23 percent - compared with its previous guidance of between 21.5 and 22.5 percent.
Following completion of the acquisition of GlobalCollect on September 30, 2014, GlobalCollect will be fully consolidated as of October 1, 2014. Its contribution to Group revenue in the fourth quarter is expected to be approximately EUR90 million, generating an EBITDA margin of over 15 percent.
Taking GlobalCollect's contribution in the fourth quarter into account, Ingenico Group expects consolidated reported revenue for 2014 to be between EUR1.555 billion and EUR1.565 billion, and EBITDA margin to be between 22 and 22.5 percent.
A conference call to discuss Ingenico Group's Q3 2014 revenue will be held on October 29, 2014 at 6.00pm., 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).
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 Ingenico Group registration document (" document de reference "). 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
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