Sustained Growth In Issue Volume And Revenue In Edenred First-half 2012

PARIS, July 18, 2012 /PRNewswire/ --

Strong 9.5%* growth in issue volume in line with  objectives ^[1], reflecting:

• Good economic conditions and a strong sales performance in Latin America (up 21.8%*), which accounts for more than 50% of total issue volume.
• Low growth in Europe (up 1.2%* excluding Hungary ^[2]), impacted by the decline in the number of people in work.
• Sustained growth in Rest of the world (up 11.7%*).

Total revenue of €511 million, up 7.3%*, reflecting:

• An increase of 9.3%* in operating revenue with issue volume ^{[ 3]}, in line with the rise in issue volume.
• A slight decline in operating revenue without issue volume, generated by less recurring businesses.
• An increase of 7.4%* in financial revenue, despite the decline in reference rates in most countries.

*Like-for-like, year-on-year growth in the first half

    (in EUR                                                            % change
    millions)                    1st half 2011   1st half 2012    Reported   Like-for- 
                                                                               like[4]
    Issue volume                     7,264           7,865          +8.3%      +9.5%
    Operating revenue with IV [5]      374             401          +7.2%      +9.3%
    Operating revenue witho             82              64         -22.0%      -2.1%
    Total operating revenue            456             465          +1.9%      +7.3%
    Financial revenue                   44              46          +2.1%      +7.4%
    Total revenue                      501             511          +1.9%      +7.3%

First-half issue volume up 9.5% like-for-like

Issue volume amounted to €7,865 million in the six months ended June 30, 2012, an increase of 9.5% like-for-like and of 8.3% as reported, reflecting the 0.2% positive impact of changes in scope of consolidation and the 1.4% negative currency effect for the period.

Like-for-like growth in issue volume by region

    Like-for-like growth   1st quarter    2nd quarter
    in issue volume           2012           2012       1st half 2012

    Latin America            +22.1%         +21.5%         +21.8%
    Europe                    -0.3%          -3.8%          -2.1%
    Europe excluding Hungary  +2.7%          -0.2%          +1.2%
    Rest of the world        +13.6%          +9.8%         +11.7%
    TOTAL                    +10.4%          +8.5%          +9.5%

• Latin America: €4.0 billion in first-half issue volume

In  Latin America , which accounted for more than 50% of the Group's business in the first half, issue volume rose by a very sharp 21.8% like-for-like in a favorable economy. The increase was in particular led by an excellent sales performance, which resulted in major new client wins, especially in Brazil. Growth was also driven by the ramp-up of new solutions such as Ticket Restaurante ^® in Mexico (up 30.1% like-for-like) and Junaeb in Chile, a public social program for students (up 36.7% like-for-like).

In Brazil, issue volume increased by 22.7% like-for-like, with gains across the entire solutions portfolio, including meal and food vouchers (up 22.2% like-for-like) as well as the Ticket Car ^® expense management business (up 22.9% like-for-like).

Hispanic Latin America saw sharp growth in issue volume, which rose by 20.3% like-for-like, reflecting a strong performance in all solutions with increases of 16.9% for Ticket Restaurante ^®/Ticket Alimentación ^® and 29.6% for Ticket Car ^®.

• Europe: €3.6 billion in first-half issue volume

Issue volume in Europe was slightly lower in the first half, due to the impact of the situation in Hungary ^[6]. Issue volume rose by 1.2% like-for-like excluding Hungary, in a challenging economic environment shaped by a decline in the number of people in work and low inflation rates. Business was stable in the second quarter, reflecting an unfavorable basis of comparison (with one to two additional bank holidays) and a deteriorated situation in Italy (down 1.3% in the first half, including a 2.1% like-for-like decline in the second quarter).

In  Western Europe , issue volume rose 1.3% like-for-like in the first half, mainly led by higher penetration rates. In France , for example, business performed well in the first half, with issue volume rising 2.1% like-for-like, including a 3.5% increase for Ticket Restaurant ^®, thanks to new client wins. In the United Kingdom , the Childcare Vouchers ^® business delivered a good performance with like-for-like growth in issue volume of 5.4%.

Central Europe saw a 20.3% like-for-like decline for the period, as business was negatively impacted by the situation in Hungary , where issue volume fell by 85.4%.

Total first-half revenue up 7.3% like-for-like

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