Worldline: Strong H1, large contract with Commerzbank, 2018 and 2019 guidance maintained
Worldline: (BUY, Fair Value EUR57 vs. EUR50 (+12%))Strong H1, large contract with Commerzbank, 2018 and 2019 guidance maintained
WLN has posted better-than-expected H1 earnings (revenue at +5.8% lfl and EBITDA margin of 21.9%). The group has reiterated its guidance (revenue of 5-7% and EBITDA margin of 22-23%). The closing process of SIX Payment Services is on track for a completion by the end of this year. Both 2018 and 2019 guidance are reiterated. Worldline is likely to make other M&A deals in Europe (small, medium-sized acquisitions in our view). Any additional operation would offer further upside to its EV/EBITDA multiple over 12 rolling months. We advise investors to play positive momentum (margin improvement, M&A, PSD2, instatnt payments…). We maintain our Buy recommendation and raise our FV from EUR50 to EUR57.
Worldline is a financial transaction processing company based in France. Co's operations are organized along three segments covering payments and digital services: Merchant Services & Terminals (facilitating consumer engagement around end-to-end e-payment transactional services on any device – before, during and after the point of sale); eMobility and eTransactional Services (assists businesses and governments in developing new digital services enabling strategic digital transformation); and Financial Processing & Software Licensing (provides processing services to banks and financial institutions for managing card-based and online cashless payments).
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.
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