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TheStreet Open House

Edenred : Solid First-Half 2012 Results And Performance In Line With Strategic Objectives

PARIS, August 30, 2012 /PRNewswire/ --

EBIT up 8.1% in first-half 2012[1]

Strategic and financial objectives confirmed

  • Solid first-half 2012 results, on a like-for-like basis:
    • Issue volume up 9.5% to €7,865 million.
    • EBIT up 8.1% to €170 million.
    • Funds from operations (FFO) up 14.5% to €131 million.
  • Performance in line with strategic objectives:
    • Accelerated roll-out of new solutions, with 20 solutions launched of the 26 targeted[2] for year-end 2012.
    • Initial results of the geographic expansion, with new operations in Finland and Japan out of the targeted six to eight new countries[3] by end-2016.
    • New customer gains, thanks to a solid sales performance (900,000 new beneficiaries) and an acquisition in Brazil (100,000 new beneficiaries).
    • Digital transition: objective of 50% of digital issue volume by end-2012 confirmed.
  • Full-year EBIT guidance: €355 million to €375 million

At its meeting on August 29, 2012, the Board of Directors approved the consolidated financial statements for the six months ended June 30, 2012.

First-half 2012 financial metrics

                             First-Half  First-Half
    (in EUR millions)              2011        2012            % change
                                                       Reported   Like-for-like[4]
    Issue volume                  7,264       7,865       +8.3%           +9.5%
    Operating revenue               456         465       +1.9%           +7.3%
 
    Financial revenue                44          46       +2.1%           +7.4%
 
    Total revenue                   501         511       +1.9%           +7.3%
    Operating EBIT                  123         124       +1.4%           +8.3%
 
    Financial EBIT                   44          46       +2.1%           +7.4%
 
    EBIT                            167         170       +1.6%           +8.1%
    Operating profit before tax 
    and non-recurring items         144         150       +3.8%
    Net profit, Group share          98         100
    Recurring profit after tax       96         101       +4.6%
    Recurring earnings per share 
    (in EUR)                       0.42        0.44
 

FIRST-HALF 2012 ISSUE VOLUME UP 9.5% LIKE-FOR-LIKE TO €7.9 BILLION

Issue volume totaled €7,865 million in first-half 2012, a like-for-like increase of 9.5% that was in line with the Group's normalized [5] annual growth target of 6% to 14%.

The increase was led by a very good performance in emerging countries, where issue volume rose by 15.6% [6] like-for-like and accounted for 60% of the first-half total. Despite the challenging economic environment, the developed markets delivered like-for-like growth of 1.4% for the period.

First-half 2012 issue volume by solution

                                                                
                                                                       Public   
         First                  Employee        Expense    Incentive   Social
       half 2012                Benefits       Management  & Rewards  Programs  TOTAL
                              Meal  Quality
                            & Food  of Life
    Issue volume
    (in EUR millions)        6,185      557        794        265        64     7,865
    % of total issue volume    79%       7%        10%         3%        1%      100%
    Like-for-like growth       +8%      +8%       +28%        -1%       +2%     +9.5%

In the first half, the 9.5% like-for-like increase in issue volume was led by four growth drivers:

  • Higher penetration rates in existing markets, despite the situation in Hungary[7]. This accounted for 5.0% of growth versus 4.8% in first-half 2011, reflecting dynamic markets and the solid performance by the sales teams.
  • The increase in face values, mainly in emerging markets, for 3.5%.
  • The creation and deployment of new solutions, for 1.0% of growth. In Mexico, for example, Ticket Restaurante® enjoyed a 30.1% like-for-like increase in issue volume, while the solid performance in Spain was supported by the launch of the new Ticket Transporte®, Ticket Regalo® and Ticket Corporate® solutions. Lastly, Ticket Frete® in Brazil, in the pre-launch phase, delivered €4 million in issue volume during the period.
  • Geographic expansion, whose first-half impact was limited given the recent start-up of operations in Finland with Ticket Mind & Body® in late 2011 followed by the launch of Ticket Restaurant® in April 2012.

FIRST-HALF 2012 TOTAL REVENUE UP 7.3% LIKE-FOR-LIKE TO €511 MILLION

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