Worldline (WLN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was €1,163 million, down 1.1% organically, with year-to-date revenue at €3,452 million, up 1% organically.

• Management is focused on rebounding growth, refocusing the business, and addressing operational challenges, with Power24 reorganization completed to optimize cost structure.

• Portfolio pruning is underway to divest non-synergistic assets, targeting a leaner, more focused organization and supporting investments in growth accelerators.

• Full-year 2024 guidance is confirmed: ~1% organic growth, adjusted EBITDA of ~€1.1 billion, and free cash flow of ~€0.2 billion.

• Core business fundamentals remain resilient, supported by cost rationalization and new leadership in key segments.

Financial highlights

• Q3 2024 revenue: €1,163 million, down 1.1% organically; Merchant Services up 0.2%, Financial Services down 8.3%, Mobility & e-Transactional Services up 4.9%.

• Year-to-date organic growth: 1%; Merchant Services up 2.2%, Financial Services down 3.7%, Mobility & e-Transactional Services up 2.2%.

• Acquiring MSV in Q3 2024 was c.€135 billion, up 3% year-over-year; 9M 2024 MSV reached c.€365 billion, up 4%.

• Adjusted EBITDA for 2024 expected at ~€1.1 billion; free cash flow at ~€0.2 billion.

• Merchant Services underlying growth at ~5% in Q3, excluding specific issues.

Outlook and guidance

• FY 2024 guidance confirmed: ~1% organic revenue growth, ~€1.1 billion adjusted EBITDA, ~€0.2 billion free cash flow.

• Q4 expected to show acceleration, with Australia and online verticals returning to growth.

• Merchant Services targeted for mid to high single-digit growth in H2 2025; Financial Services expected to return to growth in H2 2025 as one-off impacts subside.

• Mobility & e-Transactional Services expected to continue growth, leveraging innovation and AI.

• Targeting a return to mid-single digit revenue growth in 2025, supported by new leadership and product launches.