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Payments: H1 2018 earning season: winners are players very exposed to Payment Services
PaymentsH1 2018 earning season: winners are players very exposed to Payment Services
H1 earnings were very good in payment services: Worldline, Wirecard and SafeCharge (Buy). This segment remains very attractive to investors thanks to its strong sales growth (6-8% for the physical and ~15-20% for the online segment) and recurrence (commission fees collection), its good margins (EBITDA margin of 20-25% for the physical and 30-35% for the online segment) and its excellent transformation of EBITDA into FCF (over 50%). Only Ingenico (Sell) disappointed by not resuming organic growth in Q2 and thus putting its H1 margin under pressure. The company’s 2018 performance will be even more back-end loaded, which reinforces doubts about the achievement of its 2018 and 2020 guidance. And finally, Thales has been subject to an in-depth investigation by the EU into its proposed acquisition of Gemalto (Tender to the Offer). We believe the outcome will not be such as to call into question the friendly takeover bid.
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Bryan Garnier
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
Richard-Maxime Beaudoux
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