News
Ingenico reports Q1' 2010 revenue of €173.2 million
Ingenico (ISIN: FR0000125346 – Euronext Paris: ING) today released its revenue figures for the first quarter of 2010.
Philippe Lazare, Ingenico’s Chairman and Chief Executive Officer, stated:
“In line with our expectations, the revenue we generated this quarter was up close to 9 percent compared to Q1’09 [1]. The new organizational structure we announced in March is now effective. Going forward, we shall focus on implementing our strategic plan aiming at turning Ingenico Group into a provider of payment services and solutions.”
Revenue in Q1’10
To facilitate the assessment of Ingenico’s performance, the prior‐period revenue presented in comparison with consolidated revenue for the first quarter of 2010 have been restated to reflect changes in the company’s scope of consolidation during the year (“2009 pro forma revenue”), i.e. including the operations of Easycash and eliminating the operations of Sagem Denmark, Manison Finland and Moneyline Banking Systems as of January 1, 2009.
Moreover, the consolidated revenue figures have been prepared in accordance with International Financial Reporting Standards (IFRS) and presented, in accordance with IFRS 8, on the basis of the new breakdown of Ingenico’s business into five regions introduced in the first quarter of 2010:
‐ North America (unchanged)
‐ Latin America (unchanged)
‐ Asia‐Pacific: China, Australia, India and South East Asia
‐ EEMEA: Eastern Europe (excluding SEPA countries), the Middle East, Africa, Turkey, Russia
‐ Europe‐SEPA (“Single Euro Payment Area”): 27 European Union members, Island, Liechtenstein, Norway and Switzerland.
In line with expectations, revenue was up close to 9 percent compared with the first quarter of 2009 on a like‐for‐like basis and at comparable exchange rates. That growth was supported by a favorable basis of comparison in the Payment Terminals business, which had been severely impacted by the economic environment in Q1’09. At the same time, the Transaction Services business performed in line with the Group’s full‐year forecast for 2010.
Revenue in the first quarter of 2010 amounted to €173.2 million, including €153.2 million generated by the Payment Terminals business (hardware and maintenance) and €20.0 million generated by the Transaction Services business.
At constant exchange rates, business by region compared with Q1’09 breaks down as follows:
North America (+55.1%): Robust growth as the Group’s business caught up with its level in Q1’08.
Latin America (‐7.3%): Revenue remained high due to substantial sales in Brazil in anticipation of the change in the acquiring market structure scheduled on July 1st 2010.
Asia‐Pacific (+16.1%): Revenue was up, particularly in China.
EEMEA (‐20.5%): Revenue was down, although the Group’s business in Turkey and Eastern Europe stabilized. The revenue trend was particularly impacted by an unfavorable basis of comparison in the Middle East.
Europe‐SEPA (+8.7%): Good performance in most countries has driven revenue growth. The Group has succeeded in leveraging both the market growth driven by upcoming regulatory changes in Germany and the banking RFP won in Q4’09 in France. Revenue have also picked up in the United Kingdom and been sustained in Spain.
OUTLOOK
Supported by a favorable basis of comparison and specific market dynamics, the 9 percent revenue growth achieved in the first quarter is in line with the Group’s full‐year guidance for 2010. The previously announced target – revenue of between €790 million and €805 million at comparable exchange rates and on a like‐for‐like basis – is consistent with growth forecasts for the Payment Terminals business (estimated growth between 3 percent and 5 percent in value terms) and the Transaction Services business (estimated growth between 8 percent and 10 percent in value terms).
Assuming current economic conditions, the Group confirms its profitability targets and anticipates profitability to improve with an adjusted operating margin of between 12.5% and 13% [2], as well as an EBITDA [3] margin of between 16% and 17%.
[1] On a like‐for‐like basis at comparable exchange rates; +13% pro forma change at current exchange rates.
[2] Adjusted figures before Purchase Price Allocation
[3] EBITDA: profit from ordinary activities before amortization , depreciation & provisions and before share based payment expenses.
Ingenico :