Q1 Revenue for 2014

Outstanding performance in the first quarter of 2014

 

  • Q1 2014 revenue of €325 million
  • Organic growth1 : +20%
  • Strong performance across all regions
  • Double-digit growth in both segments
  • Specified guidance for 2014: organic growth between 10% and 15%, EBITDA2 margin of at least 21%

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.”

Revenue in Q1’14

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:

  • Europe-SEPA (up 8 percent): The Group performed well in both business segments. In Payment Terminals, a number of orders were deployed faster than anticipated, particularly in the United Kingdom’s large retailers and in the Spanish banking sector. As expected, Ingenico stepped up the deployment of its strategy based on in-store, online payment and mobile payment services through Ogone, which booked a 27-percent growth. Leveraging on Ingenico’s presence in Spain, Ogone signed its first contracts in the country during the first quarter of 2014.
  • Latin America (up 9 percent): The good performance of Ingenico was driven by an active sales policy, with Ingenico being now the payment solution provider to the region’s top thirty banks and financial institutions. As expected, the Group returned to growth in Brazil during the quarter and intensified its market presence elsewhere, notably in Mexico and the Caribbean.
  • Asia-Pacific (up 28 percent): Ingenico has continued to enjoy a strong growth in this region, above all in China, where the Group has confirmed its leading position, quarter after quarter. In broader terms, a focused sales strategy over the past several quarters has given the Group a vast acceptance network connected to the region’s 30 largest banks.
  • North America (up 61 percent): This strong performance reflects the ramp-up of Ingenico’s business in the region, particularly through the accelerated delivery of a major order in Canada. Ingenico is strongly involved and well-positioned in the deployment of secure payment solutions (point-to-point encryption, EMV), which are expected to gain ground, most specifically in the United States, as evidenced by the contracts recently signed by Ingenico with the distributor CardConnect and with HoneyBacked.
  • EMEA (up 37 percent): The Group continued to enjoy further strong sales momentum across the region, driven by the accelerated rollout of several orders in Italy during the quarter and its direct market presence in Russia. Ingenico has continued to benefit from the reorganization of its distribution network in the Middle East. Lastly, the launch of a new solution in Turkey combining payment with fiscal memory looks promising.
  • Central Operations (up 26 percent): ROAM has continued to deploy its mobile point-of-sale solutions in the United States, making new customer wins with EVO, and Thatcher Technology Group.
Outlook

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.

 

  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.