This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Edenred: Strong Organic Growth In First-half EBIT, Up 12.1%

Stocks in this article: EDEN

In the second half, growth in issue volume should be sustained by strong dynamism in Latin America, despite a higher basis of comparison, and by slightly improving trends in Europe, mainly explained by the first signs of stabilization in Central Europe.

Operating revenue should benefit from the gradual stabilization of client fee rates in some countries, while rising interest rates should drive up financial revenue, despite higher prior period comparatives in Latin America as from the fourth quarter.

On this basis, assuming that the operating flow-through ratio is within the target range of 40% to 50% and that the extra costs generated by the digital transition are in the region of €10 million to €15 million, Edenred expects to report full-year 2011 EBIT between €340 million to €360 million.  

CONCLUSION

Edenred's first-half results support the aims of its two-pronged strategy to " Conquer 2012" by:

  • G rowing issue volume in the core business by 6% to 14% a year over the medium-term, in line with the confirmed target, in particular by creating new solutions and penetrating new geographic markets. Recent innovations include the Expendia Smart expense management solution in Italy and the Junaeb card used to distribute public social benefits to students in Chile.
  • Accelerating the digital transition, with the goal of generating 50% of issue volume through paperless solutions by 2012 in order to increase the scope for long-term growth. In 2011, the digital transition is accelerating in Hispanic Latin America, while in Europe, card-based solutions are being launched in Belgium and Sweden.

After one year as a standalone company, Edenred's first-half performance reflects the robustness of its business model and the initial benefits of the EDEN: Moving Forward Differently Together corporate mission project designed to engage its 6,000 employees in making the company's strategic vision a reality.

Upcoming events

Quarterly Report released on October 19, 2011

Investor Day in London on November 29, 2011

-

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs