Jefferies has revised its price target for Worldline (WRDLY, Financial), reducing it from EUR 6.20 to EUR 5.60. This change arrives on the back of Worldline's decision to retract its 2025 guidance just two months after it was issued. The company attributed this decision to the broader macroeconomic environment and issues related to the contribution margin mix.
Analyst Hannes Leitner from Jefferies maintains a Hold rating on Worldline's shares, signaling a cautious outlook as investors await further updates. The next major development expected from Worldline is its Capital Markets Day, scheduled for the autumn, which is anticipated to provide more clarity on the company's strategic direction and financial targets.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Worldline SA (WRDLY, Financial) is $4.40 with a high estimate of $4.40 and a low estimate of $4.40. The average target implies an upside of 32.93% from the current price of $3.31. More detailed estimate data can be found on the Worldline SA (WRDLY) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Worldline SA's (WRDLY, Financial) average brokerage recommendation is currently 1.0, indicating "Buy" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Worldline SA (WRDLY, Financial) in one year is $17.36, suggesting a upside of 424.47% from the current price of $3.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Worldline SA (WRDLY) Summary page.
Key Business Developments
Release Date: February 26, 2025
- Revenue: EUR4.6 billion, representing organic growth of 0.5%.
- Adjusted EBITDA: EUR1.07 billion, with a margin of 23.1% of revenue.
- Free Cash Flow: EUR201 million, including EUR139 million nonrecurring expense linked to Power24.
- Normalized Net Income Group Share: EUR434 million, representing 9.4% of revenue.
- Reported Net Income Group Share: Loss of EUR297 million due to one-off provision related to Power24 and impact from revised fair value of TSS preferred shares.
- Normalized Diluted EPS: EUR1.53 per share.
- Net Debt: EUR2 billion, or 1.9 times adjusted EBITDA.
- Merchant Services (MS) Revenue: Organic growth of 1.9% for the full year.
- Financial Services (FS) Revenue: Down 8.9% in Q4, impacted by reinsourcing process.
- Mobility & e-Transactional Services (MeTS) Revenue: Grew 1.6% in Q4, driven by new business development in France.
- Power24 Cost Savings: EUR220 million cash cost savings with full run rate expected by end of 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Worldline SA (WRDLY, Financial) reported a revenue of EUR4.6 billion for 2024, achieving organic growth of 0.5% despite a challenging macroeconomic environment.
- The company successfully executed its Power24 initiative, resulting in cash cost savings of EUR220 million, with further savings expected in 2025.
- Worldline SA (WRDLY) has signed significant partnerships, including with GTB and Credem in Italy, and expanded its market reach through ISVs like Tabesto and Wix.
- The joint venture with Crédit Agricole is progressing well, with plans to launch products for SMBs and the enterprise segment later in the year.
- The company maintained a strong focus on cost control, achieving a free cash flow of EUR201 million in 2024, despite nonrecurring expenses linked to Power24.
Negative Points
- Worldline SA (WRDLY) experienced a revenue slowdown in the second half of 2024, with a slight decline of 1% in H2.
- The company faced specific challenges in Northern Europe, particularly in Belgium, due to slower product deliveries and market share loss.
- Financial Services division was impacted by the reinsourcing of a significant client, leading to an 8.9% decline in Q4.
- The adjusted EBITDA margin was affected by one-off items and specific issues, resulting in a reported net income group share loss of EUR297 million.
- The company anticipates a slow start to 2025 due to ongoing refocusing efforts and continued headwinds in the business.
