Rebound in business in the third quarter amid a gradual easing of lockdown measures worldwide
Total revenue of €357 million in the third quarter, up 0.5% like-for-like after falling by 15.5% in the second quarter:
- Growth in operating revenue of 0.9% like-for-like in the third quarter, reflecting a return to Group growth in Europe (+7.3% like-for-like vs. -13.1% in the second quarter) and mixed improvements in the economic and health situation in Latin America (-7.6% like-for-like vs. -20.4% in the second quarter)
- Other revenue down 9.9% like-for-like due to lower interest rates than in 2019
Total revenue for the first nine months of the year of €1,053 million, down 3.0% like-for-like, demonstrating the resilience of Edenred’s business model in the face of the crisis, and down 10.0% as reported due to a negative currency effect (-7.4%)
This performance was achieved thanks to a digital innovation strategy positioning Edenred well to take advantage of the growth trends that emerged or intensified at the height of the health crisis:
- an increase in mobile payments and direct payments on meal delivery platforms,
- greater use of remote working by companies,
- a desire from governments to provide targeted stimulus to the economy,
- more responsible consumption,
- growing interest in automated corporate payments.
2020 outlook
- Business excellence and digitalization initiatives will contribute to business growth in the fourth quarter
- In line with its expectations, the Group confirms its €100 million cost savings plan for 2020
- Edenred is narrowing its full-year 2020 EBITDA target to between €550 million and €600 million, despite new uncertainties generated by the health crisis in Europe
Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “After proving its agility and resilience at the height of the health crisis, Edenred demonstrated its capacity to return rapidly to growth in the third quarter of the year. While much of Latin America was still in lockdown, the performances recorded in Europe attested to both Edenred’s sales dynamic and the validity of our solutions in a recovering economic environment. In a world being transformed by digital technology, Edenred provides innovative, practical solutions to changing work practices, enhances the efficiency of organizations and public and private social programs, and helps people adopt more responsible behavior. Despite the uncertainties associated with ongoing developments in the public health situation, we’re confirming our full-year targets for 2020.”
