Worldline - Registration Document 2016

82 / 354

9 Operation and financial review
Overview
82 Worldline 2016 Registration Document
omni-commerce solutions and Worldline Sips payment
acceptance solutions:
Online Services. The Group generates Online Services
●
revenue from two main groups of solutions:
The Group’s omni-commerce solutions are generally sold
●
under mid- to long-term contracts that include fees for
designing and implementing the service, and recurring
assumed minimum. Omni-commerce revenue also include
revenue from the Group’s
fees generally with an assumed minimum number of
transactions, and agreed per-transaction fees above the
travel-related purchases generally based on a percentage
of the value of the items sold,
e-Commerce site, from which the Group earns
commission revenue for the sale of train tickets and other
processed;
primarily from activation fees, monthly subscription fees
and per transaction processing fees that incorporate
other acceptance-related processing services. Revenue
from its Online Services business is impacted primarily by
volume discounts for higher numbers of transactions. The
Group also includes in this business line revenue from
transactions processed for projects in the run phase and
the number of Sips and other acceptance transactions
the number of omni-commerce projects in the build phase
during the relevant period, the number of omni-commerce
The Group’s Worldline Sips services revenue is generated
●
Private Label Cards & Loyalty Services. Revenue from the
●
Group’s private label card and loyalty services are driven
fee per managed account and per transaction. When
designing a new loyalty program the Group also typically
primarily by the number of cards or loyalty accounts
managed, the level of transactions per account, and average
receives “build” fees for the initial implementation of the
program;
Payment Terminals. The Group’s payment terminals are
●
generally offered to merchants on a purchase or rental
driven primarily by the number of terminals sold or rented
out and the average price or rental fee per terminal, which is
in turn influenced primarily by market conditions and the
mix of terminals sold.
basis, with an initial installation fee and recurring monthly
maintenance fees, and are often sold as a package with its
Commercial Acquiring services in countries where the
Group offers such services. The Group’s terminals revenue is
Financial Processing&Software Licensing) Global
Business Line
Revenue of the Financial Services (formerly
The Group’s Financial Services global business line generates
revenue from four business lines:
Issuing Processing:
●
from the processing of transactions under long term
contracts under which fees are primarily based on the
number of credit cards managed and the number of
transactions processed. The Group’s card issuing services
The Group earns most of its Issuing Processing revenue
revenue is therefore primarily a function of the number of
cards managed, the average level of transaction activity
and the average fee per managed card and per
wallets, the Group typically earns a “build” fee for the initial
set up of the service, then earns fees based on the number
of business transactions processed,
transaction. The Group typically offers volume discounts
based on pre-determined bands of transaction volumes
and cards managed. When the Group acquires a new
client or helps implement new services such as electronic
Part of Issuing Processing revenue comes from payment
●
Software Licensing fees, paid at the time the software is
sold and ongoing maintenance and thereafter support
fees charged annually based on a percentage of the initial
license fee as well as project revenue to help banks roll out
and integrate the software into their existing systems;
Acquiring Processing:
●
driven by the number of acquiring transactions processed
by the Group in countries where it is not itself the
The Group’s Acquiring Processing revenue is primarily
●
The Group’s Acquiring Processing business also includes
revenue from the processing of checks, a business line
that is experiencing a steady revenue decline as
consumers increasingly pay for transactions using cards
commercial acquirer and the average fee per transaction.
and other non-cash, non-check payment methods and
whose profitability is adversely affected to the extent of
any bad debt losses for which the Group indemnifies
merchants,
payment Software Licensing fees, as described above;
Part of Acquiring Processing revenue comes from
●
generated from transaction fees for processing eBrokerage
transactions, which are typically charged on a per
transaction fee basis. The Group also generates revenue
through this business line from projects such as
Digital Banking. The Group’s Digital Banking revenue is
●
enhancements to Online Banking and mobile banking sites,
which are typically charged on a build and run project basis;
also generates revenue through this business line from
projects such as adaptation of client systems to
accommodate SEPA transactions, to comply with new
regulations.
transaction fees for processing OBeP transactions, SEPA
credit transfer and direct debit transactions, which are
typically charged on a per transaction fee basis. The Group
ACH & Payments. The Group’s ACH (Automated Clearing
●
House) and Payments division’s revenue is generated from
Revenue of theMobility&e-Transactional Services
Global Business Line
line generates revenue from three business lines:
The Group’s Mobility & e-Transactional Services global business
project implementation fees as well as ongoing fees over
the life of the contract based on the number or value of
tickets managed. This division’s revenue is largely driven by
the number of contracts the Group wins, the mix between
E-Ticketing. The Group’s e-Ticketing and journey
●
management services are typically sold under mid- to
long-term build to run project contracts. These include initial
projects in the build phase and those in the run phase, the
volume or value of transactions, and average pricing terms;