Worldline (WLN) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached €2,289m, up 2.1% organically year-over-year, with Merchant Services underlying growth at 6.2% but a softer trend in Q2 due to macroeconomic headwinds.

• Adjusted EBITDA was €514m (22.5% margin), broadly stable, with free cash flow at €82m (16.0% conversion; 24.1% excluding Power24 costs).

• Power24 transformation plan advanced, cost savings target raised to €220m by 2025 (+10%), with milestones achieved and new operating model live.

• Strategic growth initiatives included new products, partnerships (e.g., Google Cloud, VISA, Lidio), and geographic expansion, notably the Crédit Agricole JV in France and commercial expansion in Italy.

• Board governance restructured, with Wilfried Verstraete appointed Chairman and increased board diversity.

Financial highlights

• H1 2024 revenue: €2,289m (+2.1% YoY, +4.2% excluding merchant terminations); adjusted EBITDA: €514m (22.5% margin); normalized net income: €211m (9.2% of revenue).

• Reported net income: -€29m, impacted by €174m non-cash Power24 provision; normalized EPS: €0.74, down from €0.86 in H1 2023.

• Free cash flow: €82m (16% conversion), or €124m (24.1%) before Power24 costs; CapEx: €160m (7% of revenue), down 9% YoY.

• Net debt at period end: €1.7bn (1.5x adjusted EBITDA LTM); cash and cash equivalents: €2,114.5m.

• Integration and rationalization costs (ex-Power24): down 41% YoY.

Outlook and guidance

• FY 2024 organic revenue growth expected at 2–3%; adjusted EBITDA guidance: €1.13bn–€1.17bn; free cash flow target: €230m.

• Merchant Services underlying growth expected at 6–7%+ in H2, depending on macro recovery.

• Guidance reflects continued European consumption uncertainty; high end assumes macro improvement in H2.

• Power24 cost savings target raised to €220m by 2025 (+10% vs. initial target).

• Mid-term ambition: mid to high single-digit organic growth, continuous adjusted EBITDA improvement, and FCF conversion progressing toward 50%.