WLN (Neutral, TP: EUR14, +25%) Worldline Q4s - Still under pressure; down to Neutral, FY model update
Worldline Q4/H2s reported this morning were broadly in-line with lowered expectations. The exit (Q4) run-rate for revenue growth is just 1% y/y while OMDA (H2) was down 9% y/y. Macro, given discretionary spend exposure, is a factor holding back top line (volume and take-rate); merchant terminations (Germany) are also a headwind. New guidance sees momentum in theory improving from H2 24 and into the mid-term but FCF guide for FY 24 is soft and you have to look at 2025/26, and assume cost recovery, before there is any real value in the multiple.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).
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