Ingenico Group (Euronext: FR0000125346 - ING)
announced today its revenue for the first quarter of 2016.
Philippe Lazare, the Chairman and Chief Executive
Officer of Ingenico Group, commented: "Our
performance in the first quarter highlights our Group's ability to
sustain a high growth rate. The figures are up in all of our
Regions. Our multi-local footprint continues to give us the
competitive edge in Payment Terminals. At the same time, our
ePayments division is making rapid operational progress, as
demonstrated by an increasing transaction flow from strategic
customers. The division can therefore look forward to a return to
double-digit growth in the second half of the year.
In addition, we have just carried out two
acquisitions. Think&Go NFC has brought us greater opportunity
for expansion in the field of connected objects and the means to
strengthen our omni-channel offering. And, now, Lyudia will enable
Ingenico Group to build up a solid presence in Japan and capture
the market growth driven by EMV migration, which is expected to
begin in 2017. Both acquisitions are an indication of how swiftly
we are implementing our Strategic Plan 2020.
On the basis of these promising developments, we
can provide more specific objectives for 2016. We expect revenue
organic growth to exceed or equal 10% and EBITDA margin to be
around 21%."
[1] On a
like-for-like basis at constant exchange rates.
[2] EBITDA is
not an accounting term; it is a financial metric defined here as
profit from ordinary activities before depreciation, amortization
and provisions, and before expenses for shares distributed to
employees and officers.
Subsequent events
Strategic acquisition in
Japan
The Group announced today the acquisition of 70% of Lyudia,
japanese expert in software development and already distributing
Ingenico terminals in Japan. BroadBand Tower Inc will keep 30% of
Lyudia capital. This strategic move will enable Ingenico Group to
gain strong market shares in a high-barrier-entry-market.
Acquisition of Think&Go
NFC
On April 11, 2016, Ingenico Group announced the acquisition of
Think&Go NFC, a start-up provider of connected screens.
Think&Go NFC and Ingenico Group designed the first connected
screens incorporating contactless payment technology, with the
result that digital advertising displays are turned into
points-of-sale.
Revenue in Q1'16
|
Q1 2016 |
Q1 2015 |
% change |
€m |
€m |
Comparable1 |
Reported |
Europe-Africa |
193 |
168 |
17% |
15% |
APAC & Middle East |
129 |
99 |
36% |
30% |
Latin America |
45 |
55 |
2% |
(18%) |
North America |
74 |
63 |
17% |
17% |
ePayments |
111 |
113 |
(1%) |
(2%) |
Total |
552 |
498 |
15% |
11% |
In the first quarter of 2016, revenue totaled €552
million, representing an 11% increase on a reported basis,
including a negative foreign exchange impact of €20 million. Total
revenue included €388 million generated by the Terminals business
and €164 million generated by Payment Services
activities.
On a comparable basis1, revenue
growth was 15% higher than in the first quarter of 2015, a result
that included a 21% increase in Terminals and a 3% increase in
Payment Services.
The outstanding performance in the Terminals
business was driven by rapid growth in the US and Chinese markets
and by particularly strong business in Europe during the quarter.
Moreover, as anticipated, Ingenico Group's performance in Payment
Services reflected a significant decrease in volumes from a
customer's collecting business, during the third quarter of 2015.
Without that event, Payment Serviceswould have shown 9% growth.
Performance for the quarter by geography, on a
like-for-like basis and at constant exchange rates, compared with
Q1 2015, was as follows:
- Europe-Africa (up 17%): Growth was solid across
the entire Region, but with a favorable basis of comparison with
2015 and exceptionally high order levels in mature markets. In
those markets, the Group has maintained its leadership, thanks to a
range of products and services that respond perfectly to customer
needs. Business was particularly vigorous in the United Kingdom and
the Nordic countries, where the bulk of an equipment replacement
cycle was under way in early 2016.
In Greece, Ingenico Group has continued to benefit from the
recently introduced legal limit on cash withdrawals and has
significantly increased its share of the large-scale retail market.
In Russia, the Group has become the leader and revenue doubled once
again after major contracts were won, most notably with Sberbank in
late 2015.
In-store payment services revenue has likewise continued to benefit
from strong dynamism driven by its increasing brand awareness,
services range and commercial organization. Most specifically,
Ingenico Group has continued to register solid growth among large
retailers in Western Europe with its centralized solution for
managing transaction flows (Axis).
- Latin America (up 2%): Ingenico Group has
continued to grow in the region, despite Brazil's highly
unfavorable macroeconomic situation. In Mexico, where the Group's
strategy of targeting major retailers is producing results, revenue
rose sharply. Another noteworthy development in the quarter was a
resumption of sales in Argentina, helped by the government's
economic liberalization moves.
- Asia-Pacific and the Middle East (up 36%):
Ingenico Group has continued to record high growth in this
geographic area. In China, the Group has confirmed its market
leadership, quarter after quarter. However, in the first quarter of
2016, the seasonal nature of its business worked to the Group's
advantage thanks to large orders placed in late 2015. Business has
also remained buoyant across the other markets in Asia. Ingenico
Group has continued to expand in Southeast Asia. In India, the
market for the Group's offers still shows high growth, driven by
government initiatives to digitize the country's economy. In
Turkey, Ingenico Group has almost tripled its sales, capturing
growth from deployment of fiscal memory payment terminals.
- North America (up 17%): In the first quarter,
the Group recorded high growth in the United States (up 27%), as
EMV migration accelerated in the medium-to-small merchant segment
and while Ingenico Group kept on winning over key
retailers.
Sales of EMV-compatible mPOS terminals were also quite
strong.
Those developments in part reflected the first chargebacks that
merchants who had not yet made the changeover to EMV technology
have to bear. At the same time, Ingenico Group has made further
operational progress with the aim of gaining market share in the
United States through a strategic focus on sectors such as
healthcare and hospitality.
- ePayments (down 1%): Performance was further
affected by a decrease in transaction volumes from one of the
division's major customers during the third quarter of 2015. A key
change in the quarter was a pick-up in transaction flows from
strategic customers, compared to the end of 2015. IngenicoConnect,
the Group's new integration and payment page mobile-optimized
solution, has been fully deployed on the cross-border platform. In
addition, Ingenico Group was chosen by BNP Paribas to enrich its
online payment solutions and thereby help the bank's customers
accelerate their international growth. The operational progress
achieved in these different areas should bring about a return to
double-digit growth for the ePayments division in the second half
of 2016.
Outlook
In the first quarter, Ingenico Group continued to
record strong growth, and the business trend for the coming months
is well oriented. Management can confidently reaffirm its
objectives for double-digit growth in the United States. Growth
will also remain strong in Asia, particularly in China, where
revenue growth will also be in double digits. In Latin America, the
Group's business should hold steady during the year, with growth in
new markets offsetting the slowdown in Brazil. Revenue growth in
Europe should return to a more normal level, but will remain
strong. Lastly, the ePayments division can be expected to return to
double-digit growth in the second half of the year, thanks to
operational progress initiated in late 2015.
On the basis of these promising developments,
Ingenico Group can provide more specific revenue objective, and now
targets organic growth exceeding or equal to 10%.
The Group is also maintaining its EBITDA objective
at around 21%, reflecting a stepped-up drive to develop and bring
to market its latest offers, particularly in ePayments.
Conference call
A conference call to discuss Ingenico Group's Q1
2016 revenue will be held on April 26, 2016 at 6.00 p.m., 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)
with the conference code: 958250. 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 the Ingenico Group registration document ("document
de référence"). 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
Investors
Stéphanie Constand
VP Investor Relations
stephanie.constand@ingenico.com
(T) / 01 58 01 85 68 |
Investors
Caroline Alamy
Investor Relations Manager
caroline.alamy@ingenico.com
(T) / 01 58 01 85 09 |
Communication
Coba Taillefer
External Communication Manager
coba.taillefer@ingenico.com
(T) / 01 58 01 89 62 |
|
Upcoming events
Q1 2016 revenue conference call: April 26, 2016 at
6 p.m., Paris time
Annual Meeting of Shareholders: April 29, 2016
H1 2016 results: July 26, 2016
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Source: INGENICO via Globenewswire
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