(Reuters) – Worldline reported organic revenue growth of 2.5% in the first quarter on Thursday, above expectations, driven by its merchant services business.

The turnover of the payment means specialist stood at 1.10 billion euros in the first quarter of 2024, compared to 1.07 billion euros the previous year.

Analysts were expecting organic growth of 0.7%, according to a consensus provided by the company.

The merchant services division, which represents around 70% of the group’s total turnover, posted organic growth of 3.9%, against expectations of 1.3%.

“Despite the good results obtained in the new markets addressed, such as Italy, the quarter was impacted by the still gloomy macro-economic context and the termination of the contracts of certain merchants”, however commented the company in a press release.

In October, Worldline shares lost more than half their value, sending shockwaves through the sector, after the company cut its financial targets for the full year.

Worldline’s chief executive, Gilles Grapinet, said at the time that consumers were cutting back on non-essential spending due to the economic slowdown in Europe, while increased regulatory scrutiny had forced the company to review its business risk policies.

On Thursday, group finance director Gregory Lambertie told reporters the merchant termination process was now complete and confirmed it had cost the company around €130 million in lost revenue.

The group has confirmed all of its objectives for 2024, which provide for organic growth in turnover of at least 3%, an adjusted gross operating surplus (EBE) of at least €1.17 billion. euros and a free cash flow of at least 230 million euros.

Worldline indicated that the group’s next strategic phase would be detailed during a Capital Market Day planned for the second half of 2024.

(Report by Gaëlle Sheehan, written by Camille Raynaud, edited by Kate Entringer)

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