Paris, April 30, 2014. Ingenico (Euronext: FR0000125346 - ING) announced today its revenue figures for the first quarter of 2014.
Philippe Lazare, Chairman and CEO of Ingenico, commented: “In the first quarter, Ingenico’s business activity has seen remarkable growth across all regions in which we operate. This performance is mostly based on our unique competitive positioning in a stronger market than expected.
Moreover this performance demonstrates the relevance of our multi-local strategy: we have enhanced our leadership in China and in emerging markets, accelerated our deployment in North America and managed to successfully integrate Ogone, leader on digital payments.
By deploying our fast and secure payment solutions across all distribution channels – in-store, on-line and mobile – we have more than ever assumed our role as facilitator for our customers in their interaction with consumers.
All of these factors now enable us to provide a more specific revenue guidance for this year.”
With Ingenico’s European business and Transactions division now combined, Italy and Eastern Europe have been included in the EMEA region with effect from January 1, 2014, reflecting their primary orientation toward Payment Terminals. At the same time, following the disposal of TransferTo in December 2013, the Central Operations division now encompasses ROAM and central procurement. Healthcare revenue is now included in the Europe-SEPA region.
To facilitate assessment of the Group’s performance, consolidated revenue for the first quarter of 2014 is compared here with pro forma revenue with effect from January 1, 2013 to reflect the deconsolidation of TransferTo carried out in 2013.
In the first quarter of 2014, revenue totaled €325 million, representing a 7 percent increase on a reported basis. This result included a negative foreign exchange impact of €18 million, particularly in relation to Latin America. Total revenue included €268 million generated by the Payment Terminal business (hardware, services, and maintenance) and €57 million generated by Transaction Services.
On a comparable basis1, revenue growth was 20 percent higher than in Q1 2013, driven by a double-digit growth in both segments. The Group’s performance in Payment Terminals (up 21 percent) was fueled by its multi-local footprint in a stronger than expected market trends. Transaction Services business increased by 5-point to 14 percent, thanks to good results for in-store and online payment solutions.
All regions contributed in the first quarter of 2014 to the Group’s overall strong performance. In addition, Services, Maintenance and Transactions accounted for a steady 30 percent of Group’s revenue (excluding TransferTo).
Performance for the quarter, by geography and on a like-for-like basis1 compared with Q1 2013, was as follows:
During the first quarter, Ingenico has achieved an outstanding performance in Payment Terminals, and, in addition to that, the Transaction Services business seems also well oriented in most countries in Europe.
In this context, the Group provides a more specific revenue guidance for 2014. Ingenico expects organic growth1 of between 10 and 15 percent, based on pro forma 2013 revenue of €1,301 million (excluding the contribution of TransferTo, disposed of on December 1, 2013).
As in the second half of 2013, Ingenico intends to accelerate its investments in 2014 in future growth drivers to keep pace with a rapidly evolving market, and restates its expectation that EBITDA2 margin will exceed or be equal to 21 percent.