By Mauro Orru
Worldline reported a loss for 2023 after its core merchant-services business booked an impairment of 1.15 billion euros ($1.25 billion) as inflation and high interest rates deterred many consumers from spending on nonessential items.
The French fintech company on Wednesday posted a EUR817 million net loss for last year compared with profit of EUR211 million for 2022. Adjusted earnings before interest, taxes, depreciation, and amortization–Worldline’s preferred measure of profitability–was almost flat at EUR1.11 billion.
“Worldline’s second half was materially impacted by a gradual overall macroeconomic and consumption slowdown in our core geographies, as well as by the impact of the termination of some of our online merchants, based on tighter regulatory framework,” said Chief Executive Gilles Grapinet.
Consumers have diverted more of their spending to nondiscretionary expenses, deemed essential such as housing and food, rather than discretionary expenses like entertainment or luxury goods.
Annual revenue increased 6% organically to EUR4.61 billion. In the fourth quarter, revenue grew 1.3% to EUR1.19 billion. Free cash flow fell 32% to EUR355 million.
This year, Worldline is forecasting organic revenue growth of at least 3%, adjusted Ebitda of at least EUR1.17 billion and free cash flow at least EUR230 million.
Earlier this month, Worldline said it plans to cut up to 8% of its workforce, or about 1,440 jobs, as the group seeks to save cash and adapt to consumers’ spending habits.
“Acknowledging the shifting landscape, it is now the right time to accelerate and complete our transformation towards an even leaner and more efficient organization,” Grapinet said.
Write to Mauro Orru at mauro.orru@wsj.com
