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9
Operation and financial review
Executive Summary
89
Worldline
2016 Registration Document
Executive Summary
9.4
compared with 2015. The Global Business Lines Merchant
Services & Terminals and Financial Services contributed to the
revenue growth, while Mobility & e-Transactional Services was
impacted by the termination of two historical contracts.
At constant scope and exchange rates, Worldline revenue stood
at
€
1,309.2 million
representing an organic growth of
+3.5%
Merchant Services & Terminals
, which represented 33.6% of
Worldline’s revenue in 2016, grew by
+7.3%
organically and
reached
€ 439.6 million
. This performance was mostly due to a
double digit growth in Commercial Acquiring driven by higher
Service kiosks sales in the UK.
Payment Terminals grew very satisfactorily as well, thanks to
commercial successes in the Netherlands, in Germany and with
resellers on international markets. Revenue in Private Label
Cards & Loyalty Services was impacted by lower Digital Self
transaction volumes, good operational performances, and
positive price/volume mix effects in Benelux as well as by the
good dynamism of the Group’s business in India. Sales of
was offset by less project activity compared with last year.
good volume growth on core card issuing activities. Digital
banking benefited from the new contract signed with NS&I in
the UK. In the Account Payments division, the solid volume
growth of SEPA transactions, in particular on the iDEAL platform,
at constant scope and exchange rates. This performance was
mainly driven by Acquiring Processing activities, thanks to
increased run revenue. Sales in Issuing Processing increased as
well, driven by Authentication and Fraud services, as well as by
Representing 38.2% of Worldline revenue in 2016,
Financial
Services
revenue reached
€
500.0 million
growing by
+4.9%
represented 28.2% of Worldline’s revenue in 2016, was
could be achieved thanks:
VOSA contract in the UK public sector, which occurred at end of
Q3 2015. Excluding the negative comparison effect arising from
those contract terminations, the growth rate of Mobility &
e-Transactional Services was above +15%. This performance
€
369.6 million
, declining by
-2.5%
organically. As previously
communicated, e-Government Collection was impacted by the
termination of both the automated traffic offence management
system (the RADAR contract) in France in June
2016 and of the
Revenue in
Mobility & e-Transactional Services
, which
To a double digit growth in e-Consumer & Mobility activities,
●
with several new contracts signed and projects ramp-up
mainly in France and in Germany;
To very dynamic e-Ticketing activities, with increased project
●
delivery with railways companies in the UK and higher
activity in Latin America;
To solid e-Government Collection business activity, notably
●
in healthcare and tax collection services in Latin America,
and more project work delivered with French and European
government agencies.
Revenue grew in all
geographies
except the United Kingdom
(-13.8%), which was impacted by the termination as planned of
the VOSA contract aforementioned. Revenue in Emerging
the termination of the Radar contract in June
2016.
markets (Latin America and Asia) increased by +16.1%, followed
by Belgium (+9.2%), Rest of Europe (Finland, the Netherlands,
Italy and Spain) by +8.5%, and Germany & Central and Eastern
Europe (+4.5%). Revenue in France was stable (+0.3%) despite
was generated with a lower operating margin (-240 basis
points).
the new Equens perimeter. Mobility & e-Transactional Services
new revenue, that almost offset the two terminated contracts,
+90 basis points
(“bp”) or €+20.0
million and reached
€
258.7
million
(
19.8% of revenue
) compared with 2015,
exceeding the objectives of the year. This improvement was
recorded mainly in the Merchant Services & Terminals division
margin improvement, while the division continued to invest in
security infrastructure and exercised effective cost control over
(+340 basis points), thanks to growing volumes and favorable
pricing mix mainly in Belgium as well as a margin improvement
in the UK on private label cards contracts. In Financial Services
(+160 basis points), increasing volumes in card processing led to
As a percentage of revenue, Worldline’s Operating Margin
before Depreciation and Amortization (“
OMDA
”) increased by
October
1, 2016 for € 889 million, reflecting mainly the
application of the Group’s reporting definitions to the
commercial contracts with equensWorldline’s banking
shareholders.
The
backlog
at the end of December
2016 amounted to
€
2.6
billion
. It includes the backlog acquired from Equens on
low at 5.9%, slightly reducing compared to last year.
over the year, out of which +1279 employees joining from
Equens, Paysquare and KB Smartpay on October
1, 2016. The
Direct hirings amounted to 808 employees, out of which 80%
aged 35 or younger. Attrition rate (voluntary leavers) remained
The total number of employees was
8,725
at the end of
December
2016 compared with 7,354 at the end of
December
2015, representing an increase of +1371 employees