Shares in payment service provider Worldline slipped by more than half after the vendor warned of a deteriorating outlook for sales and the termination of a number of merchant relationships due to soaring cyber crime rates.
Worldline’s Q3 2023 revenue reached €1,182 million, representing +4.8% organic growth. This was mainly driven by Merchant Services, which were up by 7.6%. Financial Services was down -2.9%, due to delays of new signing contracts.
The company says macroeconomic challenges are beginning to impact some of its key markets, particularly in Germany where the slowdown has disrupted consumer spending patterns.
The company is also planning to terminate a number of merchant relationships due to rising cases of cyber crime. The scope of such online merchants could represent up to €130 million in lost run rate 2023 revenues.
Gilles Grapinet, CEO of Worldline, says: “After a solid start of the year, we now enter into a second semester where the macro environment deteriorates, in particular in Germany. This evolution is reflected in our third quarter performance despite satisfactory commercial developments in Merchant Services."
He says the firm has initiated a new cost savings plan aimed at cutting €200 million in expenses by 2025.
Shares in the vendor dipped 53% as markets digested the distressed outloook.