- Positive overall trends: - Issue volume up 11.9% as reported and 9.0% like-for-like. - Total revenue up 9.8% as reported and 7.2% like-for-like. - Operating revenue up 6.6% like-for-like, reflecting: - Strong momentum in Latin America - A mixed situation in Europe, with stabilized unemployment rates in Western Europe but a still difficult situation in Central Europe - Return to growth in financial revenue, up 13.0% like-for-like, attributable to higher interest rates and an increased float in Latin America (in EUR millions) Q1 2010 Q1 2011 % change % change (like-for-like) (reported) Issue volume 3,174 3,554 +11.9% +9.0% Operating revenue 208 227 +9.4% +6.6% Financial revenue 19 22 +13.9% +13.0% Total revenue 227 249 +9.8% +7.2%
ISSUE VOLUME UP 9.0% LIKE-FOR-LIKE IN THE FIRST quarter
Issue volume amounted to EUR3,554 million in first-quarter 2011, up 9.0% like-for-like. The reported increase was 11.9%, lifted by the 2.3% positive currency effect for the quarter.
Growth in issue volume by region was as follows: Like-for-like France Rest of Latin Rest of the TOTAL issue volume Europe America world growth Q1 2011 +2.9% -2.0% +20.5% +23.1% +9.0% - France: first-quarter issue volume of EUR659 million
Strong performances by the meal voucher business and Ticket CESU (up 3.9% like-for-like) offset the difficulties experienced by the BtoC gift voucher business (down 31.7%). In all, first-quarter issue volume rose 2.9% like-for-like.
- Rest of Europe: first-quarter issue volume of EUR1,148 million
Issue volume in the Rest of Europe region down 2.0% like-for-like due to the loss of the CONSIP contract in Italy, which represented EUR42 million in issue volume in first-quarter 2010. Excluding this contract, issue volume was up 1.7% in the first quarter, reflecting the net effect of a like-for-like increase of 3.2% in Western Europe, helped by stabilized unemployment rates, and a 2.9% like-for-like fall in Central Europe where economic conditions remained difficult.
- Latin America: first-quarter issue volume of EUR1,628 million
Issue volume rose 20.5% like-for-like in the first quarter, lifted by growth in salaried employment, higher penetration rates and increased face values. The main products recorded solid gains, with food and meal voucher issue volume up 20.8% and Ticket Car issue volume 20.0% higher.
OPERATING REVENUE UP 6.6% LIKE-FOR-LIKE IN THE FIRST QUARTER
Operating revenue for first-quarter 2011 totaled EUR227 million, representing an increase of 6.6% like-for-like. The reported increase was 9.4%, after taking into account:
- The 0.2% positive impact of changes in scope of consolidation.
- The 2.6% positive currency effect, of which:
- The 2.7% positive effect of the Brazilian real's appreciation over the period.
- The 1.3% negative effect of applying the new official exchange rate for the Venezuelan bolivar (VEF 5.3/USD vs. VEF 4.3 in first-quarter 2010).
Like-for-like France Rest of Latin America Rest of TOTAL operating Europe the world revenue growth Q1 2011 -1.1% -1.1% +17.4% +10.0% +6.6% - France: first-quarter operating revenue of EUR36 million
In France, operating revenue dipped 1.1% like-for-like. Operating revenues from Ticket Restaurant(R) and Ticket CESU grew by a robust 4.1% like-for-like. However, in the BtoC gift voucher segment, Kadeos was badly hit by competition from a single-brand card launched by its main distributor, FNAC, despite the two companies having signed an exclusivity agreement. As a result, BtoC gift voucher revenue fell 40.5% like-for-like compared with first-quarter 2010.
- Rest of Europe: first-quarter operating revenue of EUR81 million
In the Rest of Europe region, operating revenue eased back 1.1% like-for-like, reflecting a mixed situation.
In Belgium, operating revenue advanced 4.8% like-for-like, lifted by 5.4% like-for-like growth in meal voucher revenues.
In the United Kingdom, demand for Childcare Vouchers remained strong, helping to drive 6.7% like-for-like growth in operating revenue.
In Italy, operating revenue was up 3.3% like-for-like, led by a robust performance by Ticket Restaurant(R).
In Romania, the ongoing effects of the recession led to a 39.6% like-for-like fall in operating revenue. However, customer fees stabilized compared with fourth-quarter 2010 and this should gradually filter through to revenue by the end of the year.
In the Netherlands, the gift packs business contracted sharply, trimming 1.4 points from growth in the Rest of Europe operating revenue. This business does not generate any issue volume.
- Latin America: first-quarter operating revenue of EUR94 million
In Latin America, operating revenue expanded 17.4% like-for-like, reflecting roust local economies and strong marketing performances.
In Brazil's buoyant economic environment, operating revenue climbed 16.4% like-for-like in the first quarter. All products contributed to the increase, especially meal and food vouchers which recorded an 18.0% increase like-for-like.
Hispanic Latin America also had a very good quarter, with operating revenue up 19.5% like-for-like. In Mexico, Ticket Alimentacion and Ticket Car performed particularly well.
FINANCIAL REVENUE UP 13.0% LIKE-FOR-LIKE IN THE FIRST QUARTER
First-quarter 2011 saw return to growth in financial revenue, which climbed 13.0% like-for-like after contracting 0.3% in fourth-quarter 2010.
Latin America benefited from higher interest rates and an increase in the float, which helped to drive a 38.8% like-for-like rise in financial revenue over the quarter.
In Europe, the situation stabilized, with financial revenue up 1.1% like-for-like.
First-quarter issue volume rose 11.9% on a reported basis and 9.0% like-for-like, reflecting solid market trends in Latin America and stabilized unemployment rates in Western Europe. Economic conditions remained difficult in most countries of Central Europe, particularly in Romania.
Total revenue grew by a strong 9.8% as reported and 7.2% like-for-like, with operating revenue gaining 6.6% like-for-like and financial revenue returning to growth, with an increase of 13.0% like-for-like.
Significant transactions and events for the period
As part of its growth strategy, Edenred made two acquisitions, consolidated from January 2011, that will firm up its market leadership in the countries concerned:
- Euroticket, Romania's fourth largest issuer of meal and gift vouchers.
With more than 3,000 customers and a nearly 5% market share, Euroticket issued EUR53 million worth of vouchers in 2009.
- RistoChef, Italy's seventh-largest provider of meal vouchers.
With more than 1,800 customers and a nearly 3% market share, RistoChef, generated an issue volume of around EUR70 million in 2010.
Annual Shareholders' Meeting: May 13, 2011
Second-quarter revenue announcement: July 18, 2011
Edenred, which invented the Ticket Restaurant(R) meal voucher and is the world leader in prepaid corporate services, designs and delivers solutions that make employees' lives easier and improve the efficiency of organizations.
By ensuring that allocated funds are used specifically as intended, these solutions enable companies to more effectively manage their:
- Employee benefits (Ticket Restaurant(R), Ticket Alimentacion, Ticket CESU, Childcare Vouchers, etc.)
- Expense management process (Ticket Car, Ticket Cleanway, etc.)
- Incentive and rewards programs (Ticket Compliments, Ticket Kadeos, etc.)
The Group also supports public institutions in managing their social programs.
Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 40 countries, with 6,000 employees, nearly 530,000 companies and public sector customers, 1.2 million affiliated merchants and 34.5 million beneficiaries. In 2010, total issue volume amounted to EUR13.9 billion, of which 55% was generated in emerging markets.
Full details of Edenred's 2010 results are available on the Company's website: http://www.edenred.com.
Ticket Restaurant(R) and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.
APPENDICES Issue Volume Q1 2010 2011 In EUR millions France 641 659 Rest of Europe 1,135 1,148 Latin America 1,301 1,628 Rest of the world 97 119 TOTAL ISSUE VOLUME 3,174 3,554 Q1 Change Change L/L* reported In % France 2.9% 2.9% Rest of Europe 1.1% -2.0% Latin America 25.1% 20.5% Rest of the world 22.1% 23.1% TOTAL ISSUE VOLUME 11.9% 9.0% * At constant scope of consolidation and exchange rates Operating Revenue Q1 2010 2011 In EUR millions France 36 36 Rest of Europe 79 81 Latin America 78 94 Rest of the world 15 17 OPERATING REVENUE 208 227 Q1 Change reported Change L/L* In % France 1.7% -1.1% Rest of Europe 1.6% -1.1% Latin America 19.8% 17.4% Rest of the world 15.2% 10.0% OPERATING REVENUE 9.4% 6.6% * At constant scope of consolidation and exchange rates Financial Revenue Q1 2010 2011 In EUR millions France 5 5 Rest of Europe 8 7 Latin America 6 9 Rest of the world - 1 FINANCIAL REVENUE 19 22 Q1 Change reported Change L/L* In % France 4.2% 4.3% Rest of Europe -4.9% -0.9% Latin America 47.3% 38.8% Rest of the world 10.2% 10.0% FINANCIAL REVENUE 13.9% 13.0% * At constant scope of consolidation and exchange rate Total Revenue Q1 2010 2011 In EUR millions France 41 41 Rest of Europe 87 88 Latin America 84 102 Rest of the world 15 18 TOTAL REVENUE 227 249 Q1 Change reported Change L/L* In % France 2.0% -0.4% Rest of Europe 1.0% -1.1% Latin America 21.7% 18.9% Rest of the world 15.0% 10.0% TOTAL REVENUE 9.8% 7.2% * At constant scope of consolidation and exchange rate *A perimetre et change constants
 Based on a comparable scope of consolidation and at constant exchange rates.