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Edenred: Sustained Like-for-like Growth Over The First Nine Months:

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
                                            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%
                               -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

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