Worldline CEO exits, shares plunge as payments firm issues another profit warning
Long-time CEO Gilles Grapinet to leave
Cuts organic growth, earnings guidance
Shares hit record low, down 92% from 2021 peak
European payments firms suffer turn in fortunes
Updates paragraph 18 with Greenvale Capital response
By Alban Kacher
Sept 13 (Reuters) -French payments group Worldline WLN.PA said on Friday that long-time CEO Gilles Grapinet would leave the company as it issued its third profit warning within a year, sending its shares to a record low.
Investors had piled into Worldline and other European payments firms like Italy's Nexi NEXII.MI during the pandemic, attracted by their rapid growth as customers ditched cash and by hopes for more industry consolidation.
But Worldline has disappointed investors since with cuts to its financial targets, including one last October that rocked the whole sector when it cited an economic slowdown, and another just six weeks ago when it blamed a sharp decline in domestic consumption trends.
Deputy CEO Marc-Henri Desportes will replace Grapinet, who has been CEO for more than 11 years, as of Sept. 30 and for an interim period, the company said.
A Worldline spokesperson said the decision was aimed at preparing "a new strategic step for the company".
"The CEO change was motivated by the third profit warning within a year with many investors calling for management change," Jefferies analyst Hannes Leitner said, adding that investors expected the new CEO to "ignite organic growth".
Worldline shares were down 18.5% at 1225 GMT. They have now lost about 92% from a high in July 2021 when investor enthusiasm for payments companies peaked.
SIX Group, the largest shareholder in Worldline with a 10.5% stake, said it had no plans to sell. A spokesperson told Reuters that Worldline was of "strategic importance" and that SIX backed Desportes as interim CEO.
Worldline's plunging share price has previously fanned rumours of a potential hostile takeover bid.
Last December, activist investor Bluebell urged the company to shake up its board to "restore trust". Reuters reported in January that Worldline had appointed advisers for a defence strategy to ward off any possible takeover.
French bank Credit Agricole CAGR.L revealed in January it had bought 7% of Worldline in a bid to bolster the payments company.
Bluebell partner Giuseppe Bivona said on Friday it was pleased Worldline had made changes including removing the CEO, but that it wished they had been made earlier to have avoided the latest "operational results and valuation."
MORE COST SAVINGS
Worldline said it now expected organic revenue growth of about 1% for 2024, against a previous forecast of 2-3%. It sees adjusted earnings before interest, tax and depreciation (EBITDA) around 1.1 billion euros ($1.2 billion), down from 1.13 billion-1.17 billion euros previously.
The group, which earns a fee for processing digital payments for clients, postponed its capital markets day planned for Nov. 26 and said it would launch further cost saving measures.
Worldline said it saw weaker summer trading and "specific performance issues" in its Pacific business and other markets. It declined to give details when asked by Reuters.
Hedge funds are likely to have profited as Worldline shares plunged.
Funds and asset managers from Greenvale Capital, Blackrock and Systematica all held short positions in the shares as of Aug. 30, based on data platform Breakout Point.
Greenvale Capital had recently reduced the size of its short bet, according to Breakout Point. Greenvale Capital declined to comment. The other funds did not respond to requests for comment.
($1 = 0.9024 euros)
Reporting by Alban Kacher
Additional reporting by Tommy Reggiori Wilkes and Nell Mackenzie
Editing by Sherry Jacob-Phillips, Mark Potter, Susan Fenton and Jane Merriman
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
