Edenred: Issue Volume up 10.0% Like-for-Like(1) in 2010, of Which 10.7% in the Fourth Quarter, in Line With the Mid-term Guidance of 6% to 14% a Year
PARIS, January 18, 2011 /PRNewswire/ --
- Issue volume up 10.0% like-for-like in 2010, of which 10.7% in the
fourth quarter
- Fast growth in Latin America, up 19.6% like-for-like for the year
- Mixed situation in Europe, up 2.6% like-for-like for the year
- Western Europe: unemployment rates have begun to stabilize since
mid-2010
- Eastern Europe: a still challenging economic environment
- Operating revenue up 6.3% like-for-like in 2010, of which 7.1% in the
fourth quarter, an improvement over the first nine months (up 5.9%
like-for-like)
- Financial revenue down 16.8% like-for-like in 2010, of which 0.3% in
the fourth quarter, showing signs of stabilization
- Full-year EBIT target confirmed between EUR310 and EUR330 million
(in EUR millions) 2009 2010 % change % change
(reported) (like-for-like)
Issue volume 12,407 13,875 +11.8% +10.0%
Operating revenue 808 885 +9.6% +6.3%
Financial revenue 94 80 -14.8% -16.8%
Total revenue 902 965 +7.0% +3.9%
2010 ISSUE VOLUME UP 10.0% LIKE-FOR-LIKE, TO EUR13.9 BILLION
Issue volume amounted to EUR13,875 million in 2010, up 10.0% like-for-like. The reported increase was 11.8%, lifted by the 1.4% positive currency effect for the year. This growth reflected the combined impact of robust expansion in Latin America, with a 19.6% like-for-like gain over the year, and a more mixed situation in Europe (up 2.6% like-for-like). In Western Europe, for example, business is starting to benefit from the stabilization in unemployment rates since the third quarter, but operations in Eastern Europe continue to suffer from a difficult economic environment.
Growth in issue volume by region was as follows:
Like-for-like growth in Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010
issue volume
France +4.7% -7.9% +3.2% +0.2% -0.2%
Rest of Europe +4.9% +5.6% +6.1% +0.8% +4.2%
Latin America +10.6% +17.9% +22.8% +27.2% +19.6%
Rest of the world +5.4% +18.5% +19.4% +23.0% +16.5%
TOTAL +7.2% +8.4% +13.7% +10.7% +10.0%
Issue volume rose 10.7% like-for-like in the fourth quarter. Growth was driven by robust expansion in Latin America, with European operations being impacted by major shifts in the product mix.
In France, the very slight like-for-like increase in fourth-quarter issue volume reflected the good performance by the Ticket Restaurant(R) business, up 3.8% like-for-like in the fourth quarter versus 3.2% in the first nine months. The Incentives & Rewards business, however, saw a 5.2% like-for-like decline, impacted by the 34.0% fourth-quarter drop in Kadéos(R) BtoC card issue volume.
The Ticket Restaurant(R) business enjoyed a similarly positive trend in the Rest of Europe, attesting to the fact that unemployment rates are starting to stabilize in most countries. Meal voucher issue volume(2) rose by 5.9% in the fourth quarter, versus 3.2% in the first nine months.
The Incentives & Rewards business, which represented close to 7% of the region's fourth-quarter issue volume, declined by 24.7% like-for-like during the period, worsening the 16.5% contraction over the first nine months. The final quarter accounted for more than 45% of the business' 2010 issue volume in the region.
Lastly, the fourth quarter saw the end of Ticket EcoCheque(R)'s ramp-up period, with the result that issue volume in Belgium rose by 5.1% like-for-like during the period, compared with 23.9% over the first nine months.
In Latin America, issue volume growth picked up in the fourth quarter, to 27.2% like-for-like from 17.3% in the first nine months, reflecting the region's vigorous economic growth, particularly in Brazil, and a favorable basis of comparison. The period's strong growth was also shaped by successful sales of Navideños Christmas products in Mexico. Excluding these products, issue volume in Latin America would have risen by 22.9% like-for-like in the fourth quarter.
2010 OPERATING REVENUE UP 6.3% LIKE-FOR-LIKE, TO EUR885 MILLION
Operating revenue totaled EUR885 million in 2010, representing an increase of 6.3% like-for-like, of which 4.2% in the first half and 8.2% in the second. The reported increase was 9.6%, after taking into account:
* The 0.9% positive impact of changes in scope of consolidation.
* The 2.4% positive currency effect, of which a negative 4.5% due to the Venezuelan bolivar and a positive 4.7% from the Brazilian real.
In the fourth-quarter alone, operating revenue rose 13.4% on a reported basis, versus 8.1% in the first nine months of the year, due to:
* A 7.1% increase like-for-like, versus 5.9% over the first nine months.
* A 10.5% positive currency effect, versus a 0.7% negative impact in the first nine months. This stemmed from i) the 3.4% rise in the Brazilian real against the euro and ii) a low basis of comparison due to the Venezuelan bolivar (up 4.6%) following its January 2010 devaluation, whose full impact on the third and fourth quarters of 2009 was recognized in fourth-quarter 2009 alone.
Like-for-like Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010
growth in
operating revenue
France +4.2% +1.9% +8.6% +6.1% +5.1%
Rest of Europe +0.3% -1.4% +3.6% +2.0% +1.2%
Latin America +9.1% +11.7% +16.6% +16.3% +13.4%
Rest of the world -6.8% -0.6% -3.3% +1.6% -2.3%
TOTAL +3.8% +4.5% +9.5% +7.1% +6.3%
* Operating revenue for the year in France: EUR146 million
In France, operating revenue increased by 5.1% like-for-like in 2010 and by 6.1% in the fourth quarter alone. This good performance was led by the strong momentum in the Ticket Restaurant(R) business observed since the start of the year and maintained in the fourth quarter (up 12.0% like-for-like). Incentives & Rewards products, on the other hand, experienced weaker demand during the period.
* Operating revenue for the year in the Rest of Europe: EUR316 million
In the Rest of Europe, operating revenue increased by 1.2% like-for-like in 2010, with the improving trend continuing into the fourth quarter (up 2.0% versus 0.7% in the first nine months).
In Belgium, operating revenue rose 16.0% like-for-like in 2010. As expected, Ticket EcoCheque(R)'s contribution was very limited in the fourth quarter after a particularly significant one in the first nine months, which enabled the business to deliver 16 points of the country's 21.3% growth. At the same time, Ticket Restaurant(R) enjoyed a 6.2% like-for-like increase during the quarter, compared with 6.7% over the first nine months.
In the United Kingdom, like-for-like growth of 6.3% in the fourth quarter (4.4% like-for-like for the year) was driven by sustained demand for Childcare Vouchers(R).
In Italy, operating revenue ended the year up 0.9% like-for-like, with a 12.0% gain in the fourth quarter indicating a sharp improvement in the trend line. Ticket Restaurant(R) client and merchant fees increased by 8.7% like-for-like during the period, after declining 8.5% over the first nine months. The termination of the low-fee CONSIP contract had only a negligible impact on operating revenue. Final-quarter figures were also lifted by the successful launch of new products in the Social Benefit Programs and Incentives & Rewards segments.
In Romania, which continued to suffer from a tough economic environment, operating revenue fell by a further 38.4% in the fourth quarter, after declines of 33.7% in the third quarter and 27.7% in the first half.
* Operating revenue for the year in Latin America: EUR358 million
In Latin America, operating revenue rose 13.4% like-for-like in 2010. Growth remained robust in the fourth quarter, with a gain of 16.3% like-for-like after 12.6% in the first nine months, reflecting both the strength of the local economies and favorable prior-year comparatives.
Helped by a favorable basis of comparison, operating revenue in Brazil rose 15.9% like-for-like in the fourth quarter, versus 9.8% in the first nine months. The Ticket Restaurant(R)/Alimentation and Expense Management businesses benefited from the country's strong economic expansion, delivering like-for-like growth in operating revenue of respectively 18.1% and 15.7% in the fourth quarter, versus 10.7% and 7.9% in the first nine months.
In addition, operations in Hispanic Latin America enjoyed a 17.8% increase in operating revenue during the period, versus 16.0% in the first nine months, led by sustained strong performances across every product line, from meal vouchers to Expense Management products. In Mexico, the shift in the product mix stemming from the "Navideños" Christmas promotional offers had much more of an impact on issue volume than operating revenue, which rose 12.6% in the fourth quarter, versus 9.9% in the first nine months.
2010 FINANCIAL REVENUE DOWN 16.8%, TO EUR80 MILLION
Financial revenue ended 2010 down 16.8% like-for-like. However, the decline was only 6.3% in the second half (compared with the previously announced target of 10%), thanks to its near stability in the fourth quarter (down 0.3% like-for-like).
In Brazil, the past two quarters have seen an upturn in interest rates and a significant increase in the local float. As a result, in Latin America, the fourth quarter confirmed the upward trend in financial revenue that emerged in the third quarter, with a 12.0% like-for-like increase building on the previous 2.5% rise (after a 16.4% decline in the second quarter and a 38.7% drop in the first).
In Europe, performance is starting to benefit from a more favorable basis of comparison, with financial revenue declining by 2.3% in France and 6.7% in the rest of Europe in the fourth quarter, versus respectively 25.1% and 19.5% in the first nine months.
2010 TOTAL REVENUE UP 3.9% LIKE-FOR-LIKE, TO EUR965 MILLION
Total 2010 revenue came to EUR965 million, up 3.9% like-for-like and 7.0% as reported. Reported growth reflected the positive 0.9% impact of changes in scope of consolidation and a positive 2.3% currency effect, of which a positive 4.5% due to the Brazilian real and a negative 4.3% from the Venezuelan bolivar.
Like-for-like Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010
growth
Operating +3.8% +4.5% +9.5% +7.1% +6.3%
revenue
Financial -29.5% -20.4% -11.6% -0.3% -16.8%
revenue
Total revenue -0.4% +1.8% +7.3% +6.6% +3.9%
Operating revenue accounted for 92% of total revenue for the year and financial revenue 8%.
CONCLUSION
The 10.0% like-for-like growth in 2010 issue volume was in line with Edenred's mid-term guidance of between 6 and 14% a year. This solid growth was primarily led by the very good performance in emerging markets, where issue volume rose by an aggregate 15.2% like-for-like and accounted for more than 54% of the consolidated total.
Operating revenue increased by a solid 6.3% like-for-like over the year, despite competitive pressure in certain countries and unfavorable shifts in the product mix during the period.
The final quarter of the year saw the decline in financial revenue slow to a halt (down 0.3% like-for-like), after a very difficult first nine months (down 21.1%).
Based on these factors, EBIT is still expected to total between EUR310 million and EUR330 million for the year.
INVESTOR CALENDAR
2010 results released on February 24, 2011
Edenred, the world leader in prepaid service vouchers, provides solutions that enhance personal well-being and improve the performance of organizations. Operating in 40 countries, with 6,000 employees, nearly 500,000 private and public sector customers, 33 million users and 1.2 million affiliates, Edenred offers a wide range of products in two categories:
- Employee and public benefits related to meals and food (Ticket
Restaurant, Ticket Alimentation) or quality of life (Ticket CESU,
Childcare Vouchers, etc.)
- Performance solutions in the areas of expense management (Ticket Car,
etc.), incentives and rewards (Ticket Compliments, Kadeos, etc.) and
new prepaid electronic products
In 2010, Edenred generated total issue volume of EUR13.9 billion, of which more than 50% in emerging markets.
APPENDICES
Issue Volume
Q1 Q2 Q3
2009 2010 2009 2010 2009 2010
In EUR millions
France 612 641 659 607 502 518
Rest of Europe 1,044 1,135 1,084 1,183 1,016 1,107
Latin America & Caribbean 1,246 1,301 1,327 1,536 1,363 1,488
Rest of the world 91 97 89 115 86 114
TOTAL ISSUE VOLUME 2,993 3,174 3,159 3,441 2,967 3,227
Q1 Q2 Q3
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France 4.7% 4.7% -7.9% -7.9% 3.2% 3.2%
Rest of Europe 8.7% 4.9% 9.1% 5.6% 8.9% 6.1%
Latin America & Caribbean 4.4% 10.6% 15.8% 17.9% 9.2% 22.8%
Rest of the world 7.1% 5.4% 29.2% 18.5% 32.3% 19.4%
TOTAL ISSUE VOLUME 6.1% 7.2% 8.9% 8.4% 8.8% 13.7%
Q4 FY
2009 2010 2009 2010
In EUR millions
France 797 798 2,570 2,564
Rest of Europe 1,228 1,254 4,372 4,679
Latin America & Caribbean 1,175 1,860 5,111 6,185
Rest of the world 89 120 355 446
TOTAL ISSUE VOLUME 3,288 4,032 12,407 13,875
Q4 FY
Change Change L/L* Change Change L/L*
reported reported
In %
France 0.2% 0.2% -0.2% -0.2%
Rest of Europe 2.1% 0.8% 7.0% 4.2%
Latin America & Caribbean 58.3% 27.2% 21.0% 19.6%
Rest of the world 35.1% 23.0% 25.8% 16.5%
TOTAL ISSUE VOLUME 22.6% 10.7% 11.8% 10.0%
Operating Revenue
Q1 Q2 Q3
2009 2010 2009 2010 2009 2010
In EUR millions
France 35 36 34 33 30 32
Rest of Europe 69 79 69 73 63 70
Latin America & Caribbean 74 78 81 91 82 89
Rest of the world 15 15 15 17 15 16
OPERATING REVENUE 193 208 199 214 190 207
Q1 Q2 Q3
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France 0.9% 4.2% -2.9% 1.9% 6.1% 8.6%
Rest of Europe 15.0% 0.3% 5.5% -1.4% 11.0% 3.6%
Latin America & Caribbean 5.7% 9.1% 13.0% 11.7% 8.1% 16.6%
Rest of the world -0.5% -6.8% 13.1% -0.6% 11.1% -3.3%
OPERATING REVENUE 7.7% 3.8% 7.6% 4.5% 9.0% 9.5%
Q4 FY
2009 2010 2009 2010
In EUR millions
France 44 45 144 146
Rest of Europe 98 94 299 316
Latin America & Caribbean 69 100 306 358
Rest of the world 15 17 59 65
OPERATING REVENUE 226 257 808 885
Q4 FY
Change Change L/L* Change Change L/L*
reported reported
In %
France 2.1% 6.1% 1.5% 5.1%
Rest of Europe -4.4% 2.0% 5.6% 1.2%
Latin America & Caribbean 45.3% 16.3% 17.2% 13.4%
Rest of the world 16.3% 1.6% 10.0% -2.3%
OPERATING REVENUE 13.4% 7.1% 9.6% 6.3%
Financial Revenue
Q1 Q2 Q3
2009 2010 2009 2010 2009 2010
In EUR millions
France 7 5 6 5 5 4
Rest of Europe 9 8 10 8 9 8
Latin America & Caribbean 11 6 8 6 7 6
Rest of the world 1 - - 1 1 1
Financial Revenue 28 19 24 20 22 19
Q1 Q2 Q3
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France -27.9% -27.9% -28.3% -28.3% -17.9% -17.9%
Rest of Europe -17.1% -20.3% -16.5% -19.1% -17.4% -19.1%
Latin America & Caribbean -45.2% -38.7% -17.2% -16.4% -11.4% 2.5%
Rest of the world -29.5% -30.1% -2.7% -11.5% 6.0% -4.7%
Financial Revenue -31.0% -29.5% -19.4% -20.4% -14.9% -11.6%
Q4 FY
2009 2010 2009 2010
In EUR millions
France 5 5 24 19
Rest of Europe 8 8 36 31
Latin America & Caribbean 6 9 31 27
Rest of the world 1 1 3 3
Financial Revenue 19 22 94 80
Q4 FY
Change Change L/L* Change Change L/L*
reported reported
In %
France -2.3% -2.3% -20.3% -20.3%
Rest of Europe -4.7% -6.7% -14.2% -16.5%
Latin America & Caribbean 57.2% 12.0% -12.2% -14.8%
Rest of the world 4.7% -5.8% -6.4% -13.8%
Financial Revenue 13.9% -0.3% -14.8% -16.8%
Total Revenue
Q1 Q2 Q3
2009 2010 2009 2010 2009 2010
In EUR millions
France 42 41 40 38 35 36
Rest of Europe 78 87 79 81 72 77
Latin America & Caribbean 85 84 89 97 90 96
Rest of the world 16 15 15 18 15 17
Total Revenue 221 227 223 234 212 226
Q1 Q2 Q3
Change Change Change Change Change Change
reported L/L* reported L/L* reported L/L*
In %
France -3.7% -1.0% -6.8% -2.8% 2.4% 4.5%
Rest of Europe 11.2% -2.1% 2.8% -3.5% 7.4% 0.7%
Latin America & Caribbean -0.7% 3.0% 10.3% 9.2% 6.6% 15.5%
Rest of the world -2.1% -8.1% 12.4% -1.1% 10.8% -3.3%
Total Revenue 2.9% -0.4% 4.7% 1.8% 6.5% 7.3%
Q4 FY
2009 2010 2009 2010
In EUR millions
France 49 50 168 165
Rest of Europe 107 102 335 347
Latin America & Caribbean 75 109 337 386
Rest of the world 16 18 62 68
Total Revenue 246 279 902 965
Q4 FY
Change Change L/L* Change Change L/L*
reported reported
In %
France 1.7% 5.3% -1.6% 1.5%
Rest of Europe -4.5% 1.3% 3.4% -0.8%
Latin America & Caribbean 46.2% 16.0% 14.5% 10.8%
Rest of the world 15.8% 1.2% 9.2% -2.8%
Total Revenue 13.4% 6.6% 7.0% 3.9%
(1) At constant scope of consolidation and exchange rates
(2) Excluding the CONSIP contract lost in Italy, representing EUR27m Issue Volume in this quarter (including CONSIP, Issue Volume growth is +2.8% like-for-like in the fourth quarter versus +3.3% in the first nine months)
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