Earnings Release • Apr 18, 2012
Earnings Release
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*Like-for-like, year-on-year growth in the first quarter
| st quarter 2011 1 |
st quarter 2012 1 |
% Change | ||
|---|---|---|---|---|
| (in € millions) | Reported | Like-for-like2 | ||
| Issue volume | 3,554 | 3,909 | +10.0% | +10.4% |
| Operating revenue with issue volume | 187 | 199 | +6.4% | +9.4% |
| Operating revenue without issue volume | 40 | 35 | -13.5% | +0.3% |
| Total operating revenue | 227 | 234 | +2.8% | +7.8% |
| Financial revenue | 22 | 24 | +9.3% | +10.4% |
| Total revenue | 249 | 258 | +3.4% | +8.0% |
1 Normalized organic growth target for the 2010-2016 period. Normalized growth is the objective that management considers to be attainable if unemployment does not rise.
2 Based on comparable scope of consolidation and constant exchange rates.
Issue volume amounted to €3.9 billion in the three months ended March 31, 2012, an increase of 10.4% likefor-like and of 10.0% as reported, reflecting the 0.3% positive effect of changes in scope of consolidation and the 0.7% negative currency effect for the period.
| Like-for-like growth in issue volume |
Latin America | Europe | Rest of the world | TOTAL |
|---|---|---|---|---|
| st quarter 2012 1 |
+22.1% | -0.3%* | +13.6% | +10.4% |
*Excluding Hungary, like-for-like growth was 2.7% for the period.
Issue volume in Latin America rose by a strong 22.1% like-for-like in the first quarter, driven by an excellent sales performance in a favorable macro-economic environment, as well as by the ramp-up of new solutions such as Ticket Restaurante® in Mexico (up 42.7% like-for-like) and Junaeb in Chile, a public social program for students (up 35.4% like-for-like).
In Brazil, issue volume increased by 21.5% like-for-like, with gains across the entire solutions portfolio, especially in the Ticket Car® expense management business (26.8% like-for-like volume growth).
Issue volume rose sharply in Hispanic Latin America as well, with a 23.1% overall increase reflecting favorable trends in every solution family. Ticket Restaurante® and Ticket Alimentación ® , for example, rose 20.9% like-for-like over the period, while Ticket Car® saw issue volume climb 29.5%.
Despite being impacted by the situation in Hungary3 , like-for-like issue volume in Europe was stable for the quarter. Excluding Hungary, growth was 2.7% like-for-like.
In Western Europe, issue volume rose by 2.6% like-for-like in spite of an unfavorable economic environment, driven by increases in both penetration rates and face values in every market. In France, for example, Ticket Restaurant® customer gains helped to deliver a 2.7% increase in issue volume while in the United Kingdom, strong demand for the Childcare Voucher® solution impelled growth of 8.8%. In Spain, issue volume rose 4.6% in a challenging economy, thanks to higher Ticket Restaurante® penetration rates and the launch of the Ticket Garderia® and Ticket Transporte® solutions. Business was stable over the period in Italy, at a time of rising unemployment.
Business in Central Europe was impacted by the situation in Hungary, where issue volume fell by nearly 85%. Adjusted for Hungary, the region saw positive underlying trends, with a 3.2% like-for-like increase in issue volume for the quarter. In Romania, the improvement that emerged in Q4 of 2011 continued this quarter, with 2.8% like-for-like growth over the period.
3 Where legislation in favor of national companies was introduced in the local meal voucher market on January 1, 2012.
Total revenue corresponds to the sum of operating revenue (derived from the sale of programs and services) and financial revenue (derived from investing available cash). In the first quarter of 2012, it amounted to €258 million, an increase of 8.0% like-for-like on the prior-year period.
Operating revenue totaled €234 million, representing a like-for-like gain of 7.8%. On a reported basis, the increase was 2.8% after taking into account:
| Like-for-like growth | With | Without | TOTAL |
|---|---|---|---|
| in operating revenue | issue volume | issue volume | |
| st quarter 2012 1 |
+9.4% | +0.3% | +7.8% |
• Operating revenue with issue volume climbed by a robust 9.4% like-for-like to €199 million in the first quarter. Performance by region tracked issue volume trends, with gains of nearly 20% in Latin America and of 2.4% in Europe excluding Hungary.
| Like-for-like growth in operating revenue with issue volume |
Latin America | Europe | Rest of the world | TOTAL |
|---|---|---|---|---|
| 1st quarter 2012 | +19.7% | -1.1%* | +14.1% | +9.4% |
*Excluding Hungary, like-for-like growth was 2.4% for the period.
• Operating revenue without issue volume was stable in the first quarter, at €35 million. This revenue is primarily generated by corporate marketing and incentive consulting services, which are less recurring than other solutions. During the quarter, the sharp drop in this business in Germany reduced growth in total operating revenue in Europe by 2.1 points.
Financial revenue rose by 10.4% like-for-like over the period, lifted by the growth in issue volumes and the increase in the average investment rate, thanks to decision to extend to longer maturities, primarily in Brazil, and slightly higher interest rates in the Rest of the world region.
In the first quarter of 2012, total revenue rose by a robust 8.0% like-for-like.
This trend reflected the solid operating performance in the businesses with issue volume, especially in Latin America. Despite the difficult economic environment, operations in Europe also delivered a slight increase, excluding the special case of Hungary. Lastly, the improvement in financial revenue also contributed to the quarter's good figures.
In this way, Edenred is pursuing its commitment to strong and sustainable growth.
To the best of the Company's knowledge, no events or changes occurred during the first quarter of 2012 that could have a significant impact on the Group's financial position.
May 15: Annual Shareholders' Meeting
July 18: Second-quarter revenue
August 30: First-half 2012 results
Edenred, which invented the Ticket Restaurant® meal voucher and is the world leader in prepaid corporate services, designs and delivers solutions that make employees' lives easier and improve the efficiency of organizations.
—
Edenred solutions ensure that funds allocated by companies are used as intend ed. These solutions help to manage:
Employee benefits (Ticket Restaurant® , Ticket Alimentación, Ticket CESU, Childcare Vouchers, etc.).
Expense management process (Ticket Car, Ticket Clean Way, Ticket Frete, etc.)
Incentive and rewards programs (Ticket Compliments, Ticket Kadéos, etc.).
The Group also supports public institutions in managing their social programs.
Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 38 countries, with some 6,000 employees, nearly 580,000 companies and public sector clients, 1.3 million affiliated merchants and 36.2 million beneficiaries. In 2011, total issue volume amounted to €15.2 billion, of which 58% was generated in emerging markets.
Ticket Restaurant® and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.
Eliane Rouyer-Chevalier, Executive Vice President Communications – Phone.: +33 (0)1 74 31 86 26 – [email protected]
Anne-Sophie Sibout, Media Relations Director - Phone: +33 (0)1 74 31 86 11 - [email protected]
Anaïs Lannes, Media Relations Officer - Phone: +33 (0)1 74 31 86 27 – [email protected]
Virginie Monier, Head of Financial Communication – Phone: + 33 (0)1 74 31 86 16 - [email protected]
| Q1 | ||
|---|---|---|
| In € millions | 2011 | 2012 |
| France | 659 | 666 |
| Rest of Europe | 1,148 | 1,127 |
| Latin America | 1,628 | 1,987 |
| Rest of the world | 119 | 129 |
| TOTAL ISSUE VOLUME | 3,554 | 3,909 |
|---|---|---|
| Q1 | |||
|---|---|---|---|
| In % | Change reported |
Change L/L* |
|
| France | 1.0% | 2.7% | |
| Rest of Europe | -1.8% | -2.0% | |
| Latin America | 22.1% | 22.1% | |
| Rest of the world | 8.4% | 13.6% | |
| TOTAL ISSUE VOLUME | 10.0% | 11.2% |
| Q1 | ||
|---|---|---|
| In € millions | 2011 | 2012 |
| France | 36 | 34 |
| Rest of Europe | 81 | 76 |
| Latin America | 93 | 113 |
| Rest of the world | 17 | 11 |
| OPERATING REVENUE 227 234 |
|---|
| --------------------------------- |
| Q1 | ||
|---|---|---|
| In % | Change reported |
Change L/L* |
| France | -7.1% | 2.5% |
| Rest of Europe | -5.7% | -4.7% |
| Latin America | 20.9% | 20.9% |
| Rest of the world | -35.0% | 6.1% |
| OPERATING REVENUE 2.8% 7.8% |
|---|
| ----------------------------------- |
* At constant scope of consolidation and exchange rates
| Q1 | ||
|---|---|---|
| In € millions | 2011 | 2012 |
| France | 5 | 5 |
| Rest of Europe | 7 | 8 |
| Latin America | 9 | 10 |
| Rest of the world | 1 | 1 |
|--|
| Q1 | ||
|---|---|---|
| In % | Change reported |
Change L/L* |
| France | 0.6% | 5.4% |
| Rest of Europe Latin America |
7.1% 13.9% |
3.8% 15.1% |
| Rest of the world | 39.9% | 59.5% |
| Financial Revenue | 9.3% | 10.4% |
* At constant scope of consolidation and exchange rates
| Q1 | ||
|---|---|---|
| In € millions | 2011 | 2012 |
| France Rest of Europe |
41 88 |
39 84 |
| Latin America | 102 | 123 |
| Rest of the world | 18 | 12 |
| Total Revenue | 249 | 258 |
|---|---|---|
| Q1 | |||
|---|---|---|---|
| In % | Change reported |
Change L/L* |
|
| France | -6.1% | 2.9% | |
| Rest of Europe | -4.6% | -4.0% | |
| Latin America | 20.3% | 20.4% | |
| Rest of the world | -32.2% | 8.1% | |
| Total Revenue | 3.4% | 8.0% |
* At constant scope of consolidation and exchange rates
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