Edenred: Sustained like-for-like growth over the first nine months:
Issue volume up 9.8% and revenue up 7.2%
PARIS, October 17, 2012 /PRNewswire/ --
- Issue volume rose by 9.8% to €11.9 billion in the first nine months of 2012, reflecting:
- Strong momentum in Latin America, up 21.1%.
- A slight 1.9% growth in Europe, excluding Hungary[1] in a difficult economic environment.
- Sustained growth in the rest of the world, up 10.4%.
- Total revenue rose by 7.2% to €767 million over the period, illustrating:
- An 8.9% increase in operating revenue with issue volume[2].
- Slight increase in operating revenue without issue volume.
- 4.0% growth in financial revenue, reflecting the gradual impact of decreasing reference rates in most countries.
- Edenred confirms its full-year targets of 6% to 14%[3] like-for-like growth in issue volume over the medium term and of €355 million to €375 million in 2012 EBIT.
(All growth rates are on a like-for-like basis)
First nine First nine
(in EUR millions) months 2011 months 2012 % change
Reported Like-for-like[4]
Issue volume 10,844 11,864 +9.4% +9.8%
Operating revenue with
issue volume 564 604 +7.1% +8.9%
Operating revenue
without issue volume 114 94 -16.9% +0.3%
Total operating
revenue 678 698 +3.1% +7.5%
Financial revenue 68 69 +0.4% +4.0%
Total revenue 746 767 +2.8% +7.2%
Issue volume for the first nine months of 2012
Up 9.8% like-for-like
Issue volume ended the first nine months of the year at €11,864 million, up 9.8% like-for-like and in line with first-half trends. The reported increase was 9.4%, reflecting the positive 0.9% impact of changes in scope of consolidation and a 1.3% negative currency effect over the period.
Like-for-like growth in issue volume by region
First
Second nine
Like-for-like growth First quarter quarter Third quarter months
in issue volume 2012 2012 2012 2012
Latin America +22.1% +21.5% +19.9% +21.1%
Europe
-0.3% -3.8% +0.1% -1.4%
Europe excluding
Hungary +2.7% -0.2% +3.6% +1.9%
Rest of the world +13.6% +9.8% +7.9% +10.4%
TOTAL +10.4% +8.5% +10.5% +9.8%
- Latin America: €6.3 billion in nine-month issue volume
In Latin America, issue volume rose by a sustained 21.1% like-for-like over the first nine months of the year. This performance was in line with the first-half's, in a favorable economic environment shaped by job creation and wage inflation. In particular, the sustained momentum was led by a sales performance that remained very strong, which resulted in new client wins. Issue volume growth was also lifted by the new solutions, such as Ticket Restaurante® in Mexico, with a 28.2% gain over the period, and the Junaeb public social program for students in Chile, up 41.0% like-for-like.
Issue volume in Brazil ended the period up 22.4% like-for-like, of which 22.0% in the third quarter. These solid results were led by growth across every solution, with like-for-like gains of 22.1% in meal and food voucher solutions and of 21.3% in the Ticket Car® expense management business.
Issue volume in Hispanic Latin America rose sharply over the period, by 19.0% like-for-like, of which 16.7% in the third quarter. This performance reflected good trends in every solution, with Ticket Restaurante® and Ticket Alimentación® gaining 15.2% and Ticket Car® issue volume increasing by 28.5% over the first nine months.
- Europe: €5.2 billion in nine-month issue volume
Issue volume contracted by a slight 1.4% in Europe over the first nine months of the year, impacted by the difficult economy (shaped by declining numbers of people in work and low inflation) and the situation in Hungary[5].
Excluding Hungary, issue volume ended the period up 1.9% like-for-like, versus a 1.2% increase in the first half.
In Western Europe, issue volume rose by 2.1% like-for-like, of which 4.0% in the third quarter, thanks to higher penetration rates and despite the impact of rising unemployment. In France, nine-month like-for-like growth came to 2.7%, with a sharp 4.2% increase for the Ticket Restaurant® business, lifted by new client wins. The Childcare Vouchers® business in the United Kingdom rose by 3.7% like-for-like over the period, while issue volume in Italy was down slightly in a persistently tight economy.
Issue volume declined by 20.4% like-for-like in Central Europe, in line with first-half trends and mainly as a result of the 84.4% fall off in volumes in Hungary.
- Rest of the world: €424 million in nine-month issue volume
Issue volume in the Rest of the world rose by 10.4% like-for-like over the period, versus an 11.7% increase in the first half. This performance was led by solid growth in Turkey, the primarily contributor to the region's issue volume. The reported growth in the third-quarter took into account the recent acquisition of Barclay Vouchers in Japan.
Total revenue for the first nine months of 2012
Up 7.2% like-for-like
Total revenue corresponds to the sum of operating revenue (derived from the sale of programs and services) and financial revenue (derived from investing available cash). In the first nine months of 2012, it amounted to €767 million, an increase of 7.2% like-for-like over the prior-year period. Reported growth was 2.8%, after the negative 3.2% impact from changes in the scope of consolidation and the 1.2% negative currency effect.
Operating revenue for the first nine months of 2012
Up 7.5% like-for-like
Operating revenue ended the first nine months at €698 million, up 7.5% like-for-like and in line with the 7.3% increase delivered in the first half. On a reported basis, the increase was 3.1% after taking into account:
- The net negative 3.2% impact of changes in the scope of consolidation. It reflected the termination of the BtoC gift business in France since January 1, 2012 and the disposal of Davidson Trahaire in Australia and of Workplace Benefits, and included a positive impact from the acquisitions of a fuel card provider in Mexico, and two meal voucher providers (Comprocard in Brazil and Barclay Vouchers in Japan)[6].
- The 1.2% negative net currency effect, due mainly to the Brazilian real.
Like-for-like growth in operating revenue by type of revenue
Like-for-like growth Second
First quarter quarter Third quarter First nine
in operating revenue 2012 2012 2012 months 2012
With issue volume +9.4% +9.2% +8.2% +8.9%
Without issue volume +0.3% -4.3% +6.5% +0.3%
TOTAL +7.8% +6.7% +8.0% +7.5%
- Operating revenue with issue volume amounted to €604 million in the first nine months of the year, up 8.9% like-for-like versus a 9.3% increase in the first half. It reflected the solid overall performance, notably in Latin America and the Rest of the world region, as well as the increasing contribution from expense management solutions in Latin America, whose take-up rate[7] is lower.
Like-for-like growth
First nine
in operating revenue First quarter Second quarter Third quarter months
with issue volume 2012 2012 2012 2012
Latin America +19.7% +19.9% +15.5% +18.3%
Europe
-1.1% -1.3% -0.5% -1.0%
Europe excluding
Hungary +2.4% +2.3% +3.1% +2.6%
Rest of the world +14.1% +8.8% +10.7% +11.2%
TOTAL +9.4% +9.2% +8.2% +8.9%
FINANCIAL REVENUE FOR THE FIRST NINE MONTHS OF 2012 UP 4.0% LIKE-FOR-LIKE
Financial revenue amounted to 69 million euros, up 4.0% over the first nine months, compared with a 7.4% increase in the first half. The third quarter saw a 2.1% like-for-like decrease, reflecting the decline in reference rates in most countries.
Conclusion
In the first nine months of 2012, total revenue rose by a sustained 7.2% like-for-like.
This trend primarily reflected the solid performance of operating revenue with issue volume (up 8.9%), especially in Latin America, whereas Europe is experiencing a more difficult economic environment.
Financial revenue improved by 4.0% like-for-like, at a time of declining reference rates.
On this basis, Edenred confirms its targets of 6% to 14%[8] like-for-like growth in issue volume over the medium term and of €355 million to €375 million in 2012 EBIT.
Quarterly information
Significant transactions and events of the period
Edenred is pursuing its geographic expansion with the goal of opening six to eight new countries by 2016[9] and is reaffirming its targeted acquisitions strategy.
With the acquisition of Barclay Vouchers in July 2012, Edenred established a foothold in the Japanese market, whose 63 million employees and still very low penetration rate (estimated at less than 1%) offer strong growth potential. With more than 600 clients, Barclay Vouchers, the only player in the Japanese market for meal vouchers, generated 2011 issue volume of approximately €100 million. This provides Edenred with direct access to a nationwide network of over 30,000 affiliates.
The acquisition of Comprocard in Brazil in the second quarter of 2012 has enabled Edenred to consolidate its leadership position in prepaid service vouchers in a strategic country with a fast-growing economy. With approximately 4,000 clients, Comprocard is the food voucher market leader in the oil-producing State of Espirito Santo, with annual issue volume of around €100 million.
The two companies' income statements have been consolidated since July 2012.
Upcoming events
February 13, 2013: Annual revenue and results.
April 17, 2013: first-quarter revenue.
-
Edenred, which invented the Ticket Restaurant® 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.
Edenred solutions ensure that funds allocated by companies are used as intended.These solutions help to manage:
- Employee benefits (Ticket Restaurant®, Ticket Alimentación, Ticket CESU, Childcare Vouchers, etc.).
- Expense management process (Ticket Car, Ticket Cleanway, Ticket Frete, etc.)
- Incentive and rewards programs (Ticket Compliments, Ticket Kadéos, etc.).
The Group also supports public institutions in managing their social programs.
Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 39 countries, with nearly 6,000 employees, close to 580,000 companies and public sector clients, 1.3 million affiliated merchants and 36.2 million beneficiaries.In 2011, total issue volume amounted to €15.2 billion, of which 58% was generated in emerging markets.
Ticket Restaurant® and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.
Appendices
Issue Volume
Q1 Q2 H1 Q3 September end(YTD)
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
In EUR millions
France 659 666 617 613 1,276 1,279 512 524 1,788 1,803
Rest of Europe 1,148 1,127 1,232 1,157 2,380 2,284 1,112 1,103 3,492 3,387
Latin America 1,628 1,987 1,742 2,054 3,370 4,041 1,836 2,209 5,206 6,250
Rest of the world 119 129 120 132 239 261 120 163 359 424
TOTAL ISSUE VOLUME 3,554 3,909 3,710 3,956 7,264 7,865 3,580 3,999 10,844 11,864
Q1 Q2 H1 Q3 September end (YTD)
Change Change Change Change Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L* reported L/L* reported L/L*
In %
France 1.0% 2.7% -0.6% 1.4% 0.2% 2.1% 2.4% 4.1% 0.9% 2.7%
Rest of Europe -1.8% -2.0% -6.1% -6.4% -4.0% -4.3% -0.8% -1.8% -3.0% -3.5%
Latin America 22.1% 22.1% 17.9% 21.5% 19.9% 21.8% 20.3% 19.9% 20.1% 21.1%
Rest of the
world 8.4% 13.6% 10.3% 9.8% 9.3% 11.7% 36.2% 7.9% 18.3% 10.4%
TOTAL ISSUE
VOLUME 10.0% 10.4% 6.6% 8.5% 8.3% 9.5% 11.7% 10.5% 9.4% 9.8%
*At constant scope of consolidation and exchange rates.
Operating Revenue
Q1 Q2 H1 Q3 September end (YTD)
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
In EUR millions
France 36 34 34 32 70 66 31 29 101 95
Rest of Europe 81 76 78 72 159 148 71 69 230 217
Latin America 94 113 100 115 194 228 107 122 301 350
Rest of the world 17 11 16 12 33 23 12 13 46 36
OPERATING REVENUE 227 234 229 231 456 465 221 233 678 698
Q1 Q2 H1 Q3 September end(YTD)
Change Change Change Change Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L* reported L/L* reported L/L*
In %
France -7.1% 2.5% -3.3% 3.3% -5.3% 2.9% -5.4% 7.4% -5.3% 4.3%
Rest of Europe-5.7% -4.7% -8.0% -6.6% -6.8% -5.7% -3.4% -3.6% -5.8% -5.0%
Latin America 20.9% 20.9% 14.8% 18.8% 17.7% 19.8% 14.1% 16.1% 16.4% 18.5%
Rest of the
world -35.0% 6.1% -30.7% 3.7% -32.9% 4.9% 8.4% 6.1% -21.8% 5.2%
OPERATING
REVENUE 2.8% 7.8% 1.0% 6.7% 1.9% 7.3% 5.4% 8.0% 3.1% 7.5%
*At constant scope of consolidation and exchange rates.
Financial Revenue
Q1 Q2 H1 Q3 September end (YTD)
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
In EUR millions
France 5 5 5 5 10 10 5 5 15 15
Rest of Europe 7 8 8 7 16 15 8 7 24 22
Latin America 9 10 9 9 17 19 9 10 27 29
Rest of the world 1 1 1 1 1 2 1 1 2 3
Financial Revenue 22 24 23 22 44 46 24 23 68 69
Q1 Q2 H1 Q3 September end (YTD)
Change Change Change Change Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L* reported L/L* reported L/L*
In %
France 0.6% 5.4% -2.3% 1.1% -0.9% 3.2% -4.0% -0.8% -1.9% 1.9%
Rest of Europe 7.1% 3.8% -14.2% 2.7% -4.0% 3.2% -21.8% -16.5% -10.3% -3.8%
Latin America 13.9% 15.1% -1.1% 4.2% 6.3% 9.6% 14.4% 8.4% 9.2% 9.2%
Rest of the
world 39.9% 59.5% 36.6% 51.1% 38.2% 55.1% 9.7% 16.0% 26.8% 39.4%
Financial
Revenue 9.3% 10.4% -4.8% 4.5% 2.1% 7.4% -2.6% -2.1% 0.4% 4.0%
*At constant scope of consolidation and exchange rates.
Total Revenue
Q1 Q2 H1 Q3 September end (YTD)
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
In EUR millions
France 41 39 39 37 80 76 36 34 116 110
Rest of Europe 88 84 87 79 175 163 80 75 254 239
Latin America 102 123 109 124 211 247 116 133 328 379
Rest of the
world 18 12 17 13 35 25 13 14 48 39
Total Revenue 249 258 251 253 501 511 245 256 746 767
Q1 Q2 H1 Q3 September end (YTD)
Change Change Change Change Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L* reported L/L* reported L/L*
In %
France -6.1% 2.9% -3.2% 3.0% -4.7% 3.0% -5.2% 6.2% -4.8% 4.0%
Rest of Euro -4.6% -4.0% -8.6% -5.8% -6.6% -4.9% -5.4% -5.0% -6.2% -4.9%
Latin America 20.3% 20.4% 13.5% 17.7% 16.8% 19.0% 14.1% 15.5% 15.8% 17.7%
Rest of the
world -32.2% 8.1% -27.9% 5.7% -30.0% 6.9% 8.5% 6.8% -19.5% 6.9%
Total Revenue 3.4% 8.0% 0.5% 6.5% 1.9% 7.3% 4.7% 7.0% 2.8% 7.2%
*At constant scope of consolidation and exchange rates.
--------------------------------------------------
1. In Europe including Hungary, issue volume declined by 1.4% over the first nine months.
2. Corresponds to fees paid on prepaid service vouchers.
3. Normalized target for like-for-like growth in issue volume over the 2010-2016 period of 6% to 14% a year. Normalized growth is the objective that management considers to be attainable if the number of people in work does not decline.
4. At constant scope of consolidation and exchange rates.
5. Where legislation favoring local companies was introduced in the meal voucher market on January 1, 2012.
6. The income statements of Comprocard and Barclay Vouchers have been consolidated since July 2012.
7. Ratio of operating revenue with issue volume to total issue volume.
8. Normalized target for like-for-like growth in issue volume over the 2010-2016 period of 6% to 14% a year. Normalized growth is the objective that management considers to be attainable if the number of people in work does not decline.
9. The objective is to open six to eight new country markets over the 2010-2016 period.
SOURCE Edenred
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