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Investing.com -- Worldline stock jumped 18% after the payment services provider reported third-quarter revenue largely in line with expectations and announced plans to divest its North American business.
The company posted third-quarter revenue of €1.149 billion, down 0.8% compared to the same period last year. Its Merchant Services segment showed signs of stabilization, declining just 0.1%, while Financial Services fell 4.5% and Mobility & e-Transactional Services (MeTS) grew 0.7%.
Worldline narrowed its full-year EBITDA guidance to €830-855 million from the previous range of €825-875 million, citing a softer fourth quarter outlook and negative business mix. Free cash flow is expected to be between negative €30 million and zero, reflecting high restructuring charges and soft sales.
The company has entered exclusive negotiations with Shift4 to sell its North American operations for an enterprise value of €70 million. The business generates approximately €60 million in revenue, valuing the transaction at roughly 9 times 2024 EBITDA.
Results from external reviews were also disclosed, indicating that no additional portfolio cleanup will be needed for High Brand Risk accounts, though the company noted that more work is required on financial crime compliance across its entities.
Kepler analysts commented: "Q3 is bringing little surprise and we were already expecting the low end of the EBITDA guidance. Hence, the incremental news is the disposal of US operations and the cautious comments on Q4 revenues for the FS unit."
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