Ingenico Group today announces an adjustment to its objective for revenue growth for H2 2016. This adjustment is due to two elements: the rapid and temporary market decline in the US caused by the change in the EMV rules, and persistent difficult macroeconomic conditions in Brazil. In all other geographies, as well as for the ePayments division, Ingenico Group will deliver excellent performances. The Group highlights the continued solid growth dynamics in Asia Pacific and in Europe. The ePayments division will also deliver strong growth in the second half of the year, enabling the Group to accelerate its transition to on-line and mobile services activity.
The updated Group's objectives for the full year 2016 are:
- Organic revenue growth >= 7% (from >=10% previously)
- EBITDA margin >=20% (from c.21% previously).
In recent weeks Ingenico Group has been facing a sudden and significant decline in its US market which accounts for approximately 10% of Group revenues. The Group now anticipates a strong decline in sales for this country in the second half of 2016.
This market decline has been caused by a relaxation in the EMV rules. The result of this is a slowing down in the pace of adoption of EMV technology, of which Ingenico Group is one of the main providers. The relaxation of the rules is temporary, and Ingenico Group remains confident in the continued roll-out of EMV in the United States which should continue to progress in 2017 and beyond.
In Brazil, the economic deterioration is affecting the Group's performance. Despite resilient performances in other Latin American countries, the decline in this region for the second half of the year is now anticipated to be greater than in the first half.
Ingenico Group will deliver excellent performances in all other geographies as well as for the ePayments division.Excluding Brazil and the United States,the Group will maintain a double digit growth for the second half of 2016.
Philippe Lazare, the Chairman and Chief Executive Officer of Ingenico Group commented:
"The elements which have come at the same time have led us to take a more prudent approach to our objective for the end of this year. This temporary situation, to which we are giving our fullest attention, does not in any way affect the fundamentals of our strategy and the objectives which we have laid out for 2020."
A conference call will be held today, Tuesday 6th September 2016, at 8.00am CET which can be reached via the following numbers: 01 70 99 32 08 (for France), +1 646 851 2407 (for the United States) and +44 (0)20 7162 0077 (for the UK and International). The conference call reference number is 959982.
Pursuant to the commission implementing regulation (EU) 2016/1055 of 29 June 2016 laying down implementing technical standards with regard to the technical means for appropriate public disclosure of inside information and for delaying the public disclosure of inside information in accordance with Regulation (EU) No 596/2014 of the European Parliament and of the Council, this press release may contain inside information and has been sent to the authorized broadcaster of Ingenico Group on September 6th at 07.00am. This press release contains forward -looking statements. The trends and objectives given in this release are based on data, assumptions and estimates considered reasonable by Ingenico Group. These data, assumptions and estimates may change or be amended as a result of uncertainties connected in particular with the performance of Ingenico Group and its subsidiaries (for a detailed description of these risks and uncertainties, please refer to the "Risk Factor" section of Ingenico Group's Registration Document available at www.ingenico.com).These forward-looking statements in no case constitute a guarantee of future performance, and involve risks and uncertainties. Actual performance may differ materially from that expressed or suggested in the forward-looking statements. Ingenico Group therefore makes no firm commitment on the realization of the objectives shown in this release. This release shall not constitute an offer to sell or the solicitation of an offer to buy or subscribe for securities or financial instruments.
About Ingenico Group
Ingenico Group (Euronext: FR0000125346 - ING) is the global leader in seamless payment, providing smart, trusted and secure solutions to empower commerce across all channels, in-store, online and mobile. With the world's largest payment acceptance network, we deliver secure payment solutions with a local, national and international scope. We are the trusted world-class partner for financial institutions and retailers, from small merchants to several of the world's best known global brands. Our solutions enable merchants to simplify payment and deliver their brand promise.
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On a like-for-like basis at constant exchange rates.
EBITDA is not an accounting term; it is a financial metric defined here as profit from ordinary activities before depreciation, amortization and provisions, and before expenses for shares distributed to employees and officers.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: INGENICO via Globenewswire