Ingenico lowers FY18 EBITDA view to EUR485M from EUR510M
Nicolas Huss, CEO of Ingenico Group, said: "In 2018, Retail grew significantly, accelerating its growth in the second half of the year. This performance confirms the relevance of our acquisitions and our organic developments. However, Banks & Acquirers did not perform as expected which prevents us from achieving our 2018 guidance. Ingenico Group acknowledges these results and is implementing action plans in order to improve its future performance. In 2019, the Retail division will keep on growing. The contribution of the PAYONE joint-venture will strengthen our leading position in Germany, Austria and Switzerland, which are high potential markets, while Paymark will complete our offering within the Pacific region. Regarding Banks & Acquirers we are implementing the cost reduction plan already announced." In a context of a lower growth within Banks & Acquirers, Ingenico Group expects EUR$485M EBITDA for the year 2018 versus EUR$510M initially anticipated. "The contribution from the Retail business unit Retail came in line with our expectations. The contribution of Banks & Acquirers business unit was down, mainly impacted by the non-execution of contracts factored in Q4'18, a different than expected product mix, mainly a lower contribution from Axium, an unfavorable geographical mix and a negative foreign exchange impact. Furthermore, the Group has pursued a strict financial discipline. The EBITDA conversion rate has reached 55%, above the guidance of 40-45% announced in October 2018," the company said. In light of the 2018 performance, Ingenico Group is implementing the required action plans. The Banks & Acquirers business unit will be optimized, including in particular a cost savings program as well as a commercial turnaround. Group support functions will be optimized as well. Regarding the Retail business unit, investments will be accelerated within the fast growing segments. The business unit will benefit from the integration of BSPayone and Paymark. The Group will communicate its financial guidance for 2019 and detailed action plans during its full year 2018 results presentation on February 12.