PARIS, October 17, 2011 /PRNewswire/ --
- Revenue for the quarter up 11.3%, lifting growth for the first nine months to 10.3%
• Issue volume for the first nine months up 9.7%, including a 9.1% increase in the third quarter
- Strong momentum in Latin America
- Modest increase in Europe
• Revenue for the first nine months up 10.3%, led by an 11.3% gain in the third quarter
- Strong rise in operating revenue, in line with issue volume growth
- Sharply higher financial revenue
• Annual targets confirmed:
- 6% to 14% like-for-like growth in issue volume
- EBIT of €340 million to €360 million
(All growth rates are on a like-for-like basis)
2010 (9 months)
(in EUR millions) 2011 (9 months) % change
(reported) (L/L[1])
Issue volume 9,843 10,844 10.2% 9.7%
Operating revenue 629 678 7.8% 9.6%
Financial revenue 58 68 18.2% 17.9%
Total revenue 687 746 8.6% 10.3%
ISSUE VOLUME FOR THE FIRST NINE MONTHS UP 9.7% LIKE-FOR-LIKE
Issue volume for the first nine months of 2011 amounted to €10,844 million, up 9.7% like-for-like. The reported increase was 10.2%, reflecting the 0.8% positive effect of changes in consolidation scope and the 0.3% negative currency effect for the period.
- Issue volume by region
9 months
(in EUR millions) Q1 2011 Q2 2011 Q3 2011 2011
Europe 1,807 1,848 1,624 5,280
Latin America 1,628 1,742 1,836 5,206
Rest of the world 119 120 120 359
TOTAL 3,554 3,710 3,580 10,844
- Issue volume growth by region
9 months
Like-for-like issue
volume growth Q1 2011 Q2 2011 Q3 2011 2011
Europe -0.3% +1.4% -1.3% 0.0%
Latin America +20.5% +21.5% +19.4% +20.5%
Rest of the world +23.1% +17.1% +23.8% +21.2%
TOTAL +9.0% +10.9% +9.1% +9.7%
Like-for-like issue volume growth remained strong in the third quarter, reflecting:
- A slight 0.8% increase in Europe, after taking into account the loss of the Consip contract in Italy (which represented issued volume of €34 million in third-quarter 2010), in an environment shaped by stable number of people in work.
- Sharp 19.4% growth in Latin America, despite the high third-quarter 2010 comparatives, sustained by job creation, improved penetration rates and increased face values.
OPERATING REVENUE FOR THE FIRST NINE MONTHS UP 9.6% LIKE-FOR-LIKE
Operating revenue for the first nine months of 2011 totaled €678 million, representing a like-for-like gain of 9.6%. On a reported basis, the increase was 7.8% after taking into account:
- The 1.8% negative effect of changes in consolidation scope, corresponding to the divestment during the period of non-strategic businesses.
- Compensating positive and negative currency effects, including:
- The 0.7% positive effect of the Brazilian real's appreciation over the period.
- A negative 0.4% due to the Venezuelan bolivar.
The 10.3% like-for-like increase in operating revenue during the third quarter was in line with the growth in issue volume, attesting to the stabilization of client fee rates.
Like-for-like
9 months
operating revenue
growth Q1 2011 Q2 2011 Q3 2011 2011
Europe -1.1% +5.3% +2.2% +2.0%
Latin America +17.4% +19.5% +18.8% +18.6%
Rest of the world +10.0% +9.7% +14.4% +11.4%
TOTAL +6.6% +11.7% +10.3% +9.6%
- Operating revenue for the first nine months in Europe: €331 million
In Europe, operating revenue grew 2.0% like-for-like over the first nine months of 2011, led by a 2.2% gain in the third quarter.
In France, operating revenue was stable on a like-for-like basis over the first nine months. The third quarter saw a modest 0.7% like-for-like increase versus a 0.3% decline in the first half, reflecting a good performance by Ticket Restaurant® that was partly offset by lower BtoC gift voucher revenue.
Belgium enjoyed a 5.2% like-for-like rise in operating revenue in the third quarter, on the back of 4.3% growth in the first half, led by the robust performance of Ticket Restaurant® business.
In the United Kingdom, demand for the Childcare Voucher solution remained strong, helping to lift operating revenue by 8.8% like-for-like in the third quarter in the wake of 7.4% growth in the first half.
In Italy, operating revenue rose 2.2% like-for-like in the third quarter versus 4.3% in the first half.
In Romania, the decline in operating revenue slowed to just 2.2% like-for-like in the third quarter from a drop of 27.0% in the first half, confirming the gradual stabilization of issue volumes and client fee rates.
- Operating revenue for the first nine months in Latin America: €301 million
In Latin America, operating revenue increased by 18.6% like-for-like in the first nine months of 2011. Third quarter growth was 18.8% despite higher prior period comparatives than in the first half. This favorable trend was attributable to vibrant local economies and solid sales performances.
In Brazil, client wins in a buoyant economic environment helped to drive 18.7% like-for-like growth in operating revenue in the third quarter. All Edenred solutions contributed to this performance, with meal and food voucher revenue advancing 18.3% during the quarter and Ticket Car revenue up 18.8%.
In Hispanic Latin America, operating revenue expanded 19.3% like-for-like in the third quarter. In this market too, all products performed well. Operating revenue from meal and food vouchers was up by a strong 21.1% during the quarter, while Ticket Car revenue was 19.9% higher and represented over 20% of total revenue in the region.
FINANCIAL REVENUE FOR THE FIRST NINE MONTHS UP 17.9% LIKE-FOR-LIKE
Financial revenue grew at a brisk pace in the third quarter, rising 21.9% like-for-like. This performance lifted financial revenue for the first nine months by 17.9%.
Latin America continued to benefit from rising interest rates and a growing float[2], leading to 48.6% like-for-like growth in financial revenue during the third quarter, on the back of a 40.0% increase in the first half.
In Europe, the ongoing favorable interest rate comparatives helped to drive 7.3% like-for-like growth in financial revenue in the third quarter, compared with 4.3% in the first half.
CONCLUSION
Issue volume for the first nine months of 2011 totaled €10,844 million, a like-for-like increase of 9.7% that reflected vibrant local economies and robust marketing performances in Latin America (up 20.5%) and soft growth in Europe (up 2.3% excluding the loss of the Consip contract in Italy) in an environment shaped by stable number of people in work.
These favorable business trends should continue in the fourth quarter, although prior period comparatives will be unfavorable in Latin America (due to last year's very strong Christmas period sales) and the BtoC gift voucher weight will be higher in France.
On this basis, the Group confirms its 2011 target of 6% to 14% like-for-like issue volume growth.
Total revenue for the nine-month period came to €746 million, up by a robust 10.3% like-for-like. Operating revenue grew at the same pace as issue volume, reflecting stabilized client fee rates, while higher interest rates drove a sharp rise in financial revenue.
The fourth quarter should see a continuation of this underlying trend, although prior period financial revenue comparatives in Latin America will be higher.
The Group therefore confirms its 2011 target of reporting EBIT of between €340 million and €360 million.
QUARTERLY INFORMATION
Significant transactions and events of the period
On August 16, 2011, Edenred sold its Australian subsidiary Davidson Trahaire, a human resources consultancy specialized in employee assistance programs and other corporate psychology services. The business, which does not generate any issue volume, contributed €18 million to consolidated revenue in 2010.
The disposal was carried out as part of the strategic review of Edenred's non-core businesses, and followed on from the Q2 2011 sale of the Group's 45% interest in US-based WorkPlace Benefits, which is also specialized in employee assistance programs, and of its corporate concierge and personal assistance operations in France.
INVESTOR CALENDAR
Investor Day, November 29, 2011 in London
Fourth quarter revenue announcement on January 17, 2012
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Edenred, which invented the Ticket Restaurant® meal voucher and is the world leader in prepaid corporate services, designs and delivers solutions that make employees' lives easier and improve the efficiency of organizations.
By ensuring that allocated funds are used as intended, these solutions enable companies to more effectively manage their:
- Employee benefits (Ticket Restaurant®, Ticket Alimentación, Ticket CESU, Childcare Vouchers, etc.).
- Expense management process (Ticket Car, Ticket Cleanway, etc.)
- Incentive and rewards programs (Ticket Compliments, Ticket Kadéos, etc.).
The Group also supports public institutions in managing their social programs.
Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 40 countries, with 6,000 employees, nearly 530,000 companies and public sector clients, 1.2 million affiliated merchants and 34.5 million beneficiaries. In 2010, total issue volume amounted to €13.9 billion, of which 55% was generated in emerging markets.
Ticket Restaurant® and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.
Issue Volume
Q1 Q2 H1
2010 2011 2010 2011 2010 2011
In EUR millions
France 641 659 607 617 1,248 1,276
Rest of Europe 1,135 1,148 1,183 1,232 2,318 2,380
Latin America 1,301 1,628 1,536 1,742 2,837 3,370
Rest of the world 97 119 115 120 212 239
TOTAL ISSUE VOLUME 3,174 3,554 3,441 3,710 6,615 7,264
Q1 Q2 H1
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France 2.9% 2.9% 1.7% 1.7% 2.3% 2.3%
Rest of Europe 1.1% -2.0% 4.1% 1.3% 2.7% -0.3%
Latin America 25.1% 20.5% 13.4% 21.5% 18.8% 21.0%
Rest of the world 22.1% 23.1% 3.9% 17.1% 12.2% 19.8%
TOTAL ISSUE VOLUME 11.9% 9.0% 7.8% 10.9% 9.8% 10.0%
(Table continued)
Q3 September end (YTD)
2010 2011 2010 2011
In EUR millions
France 518 512 1,766 1,788
Rest of Europe 1,107 1,112 3,425 3,492
Latin America 1,488 1,836 4,325 5,206
Rest of the world 114 120 327 359
TOTAL ISSUE VOLUME 3,227 3,580 9,843 10,844
Q3 September end (YTD)
Change Change Change Change
reported L/L* reported L/L*
In %
France -1.3% -1.3% 1.2% 1.2%
Rest of Europe 0.4% -1.3% 1.9% -0.7%
Latin America 23.4% 19.4% 20.4% 20.5%
Rest of the world 5.6% 23.8% 9.9% 21.2
TOTAL ISSUE VOLUME 10.9% 9.1% 10.2% 9.7%
Operating Revenue
Q1 Q2 H1
2010 2011 2010 2011 2010 2011
In EUR millions
France 36 36 33 34 69 70
Rest of Europe 79 81 73 78 152 159
Latin America 78 94 91 100 169 194
Rest of the world 15 17 17 16 32 33
OPERATING REVENUE 208 227 214 229 422 456
Q1 Q2 H1
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France 1.7% -1.1% 0.0% 0.6% 0.7% -0.3%
Rest of Europe 1.6% -1.1% 7.9% 7.5% 4.6% 3.0%
Latin America 19.8% 17.4% 10.4% 19.5% 14.7% 18.5%
Rest of the world 15.2% 10.0% -3.5% 9.7% 5.2% 9.8%
OPERATING REVENUE 9.4% 6.6% 6.8% 11.7% 8.1% 9.2%
(Table continued)
Q3 September end (YTD)
2010 2011 2010 2011
In EUR millions
France 32 31 101 101
Rest of Europe 70 71 222 230
Latin America 89 107 258 301
Rest of the world 16 12 48 46
OPERATING REVENUE 207 221 629 678
Q3 September end (YTD)
Change Change Change Change
reported L/L* reported L/L*
In %
France -2.5% 0.7% -0.3% 0.0%
Rest of Europe 2.3% 2.8% 3.9% 3.0%
Latin America 20.0% 18.8% 16.6% 18.6%
Rest of the world -24.0% 14.4% -4.6% 11.4%
OPERATING REVENUE 7.2% 10.3% 7.8% 9.6%
Financial Revenue
Q1 Q2 H1
2010 2011 2010 2011 2010 2011
In EUR millions
France 5 5 5 5 10 10
Rest of Europe 8 7 8 8 16 16
Latin America 6 9 6 9 12 17
Rest of the world - 1 1 1 1 1
Financial Revenue 19 22 20 23 39 44
Q1 Q2 H1
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France 4.2% 4.3% 12.0% 12.0% 8.0% 8.0%
Rest of Europe -4.9% -0.9% 3.0% 4.9% -1.0% 2.0%
Latin America 47.3% 38.8% 34.5% 41.0% 40.6% 40.0%
Rest of the world 10.2% 10.0% 5.1% 17.5% 7.5% 14.0%
Financial Revenue 13.9% 13.0% 15.7% 19.0% 14.8% 16.0%
(Table continued)
Q3 September end (YTD)
2010 2011 2010 2011
In EUR millions
France 5 5 14 15
Rest of Europe 8 8 23 24
Latin America 6 9 19 27
Rest of the world 1 1 2 2
Financial Revenue 19 24 58 68
Q3 September end (YTD)
Change Change Change Change
reported L/L* reported L/L*
In %
France 13.6% 13.6% 9.8% 9.8%
Rest of Europe 11.5% 3.6% 3.1% 2.5%
Latin America 50.7% 48.6% 44.0% 42.8%
Rest of the world 18.9% 35.8% 7.4% 14.1%
Financial Revenue 25.0% 21.9% 18.2% 17.9%
Total Revenue
Q1 Q2 H1
2010 2011 2010 2011 2010 2011
In EUR millions
France 41 41 38 39 79 80
Rest of Europe 87 88 81 87 168 175
Latin America 84 102 97 109 181 211
Rest of the world 15 18 18 17 33 35
Total Revenue 227 249 234 251 461 501
Q1 Q2 H1
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France 2.0% -0.4% 1.0% 1.9% 1.6% 0.7%
Rest of Europe 1.0% -1.1% 7.5% 7.3% 4.1% 2.9%
Latin America 21.7% 18.9% 12.0% 20.9% 16.5% 20.0%
Rest of the world 15.0% 10.0% -3.2% 10.0% 5.3% 10.0%
Total Revenue 9.8% 7.2% 7.5% 12.3% 8.6% 9.8%
(Table continued)
Q3 September end (YTD)
2010 2011 2010 2011
In EUR millions
France 36 36 115 116
Rest of Europe 77 80 245 254
Latin America 96 116 277 328
Rest of the world 17 13 50 48
Total Revenue 226 245 687 746
Q3 September end (YTD)
Change Change Change Change
reported L/L* reported L/L*
In %
France -0.5% 2.3% 0.9% 1.2%
Rest of Europe 3.2% 2.9% 3.8% 2.9%
Latin America 22.0% 20.8% 18.4% 20.3%
Rest of the world -21.9% 15.4% -3.9% 11.8%
Total Revenue 8.7% 11.3% 8.6% 10.3%
Appendices
[1] Like-for-like (based on a comparable scope of consolidation and at constant exchange rates)
[2] The float corresponds to the business's negative working capital requirement.
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