- Revenue of €552 million, representing organic growth of
15%
- Growth across all regions and operational progress in
the ePayments division
- Strategic acquisition in Japan
- Specified objectives
for 2016:
- Organic growth1 above
or equal to
10%
- EBITDA margin2 of c. 21%
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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