Worldline Shares Plunge After Outlook Cut

Worldline shares fell to an all-time low on Thursday after the French payment technology group lowered its 2024 outlook due to a significant decrease in European domestic demand and doubts about a recovery

As the post-pandemic growth subsides and competition escalates, the payments industry is experiencing strain.

In the most significant daily decline among the members of the European benchmark STOXX 600 index, Worldline shares plummeted 15.5% to 8.87 euros by 0913 GMT, their lowest price ever.

“The Group has observed a softer macroeconomic and consumption environment in the second quarter with a progressive slowdown of the merchant services volumes growth across all the geographies in Europe,” according to the earnings statement issued by the company.

In January, Reuters reported that Worldline had engaged bankers to create a defense strategy to reassure shareholders and avert a hostile takeover in the wake of a significant decline in its share price.

The company, which processes digital transactions for a variety of clients, including government agencies and merchants, anticipates a full-year organic revenue growth of approximately 2% to 3% and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of 1.13 billion to 1.17 billion euros ($1.22 billion to $1.26 billion).

It had previously anticipated a minimum of 3% revenue growth and an adjusted EBITDA of “at least” 1.17 billion euros.

Worldline stated that it had implemented additional safeguards to safeguard its annual cash flow objective of 230 million euros.

“We have observed a significant increase in volumes since the beginning of the month compared to the low point in June, which is quite encouraging,” CEO Gilles Grapinet informed journalists.

The group reported that its Power24 restructuring and partnerships initiative was progressing satisfactorily. Additionally, it increased its cost savings objective for 2025 by 10% to approximately 220 million euros.

However, Worldline’s initial substantial restructuring initiative since its Paris listing a decade ago resulted in a net loss of 29 million euros during the first half of 2024, incurring a non-cash provision of 174 million euros.