Worldline Faces Loss in 2023
Worldline Shares Plummet on 2023 Loss
Worldline shares took a hit after the French fintech company reported a loss for 2023. Factors such as inflation and high interest rates contributed to the decline in consumer spending on nonessential items. The company posted a net loss of 817 million euros for the year, compared to a profit of EUR211 million in 2022.
Financial Performance and Outlook
Adjusted earnings before interest, taxes, depreciation, and amortization remained nearly flat at EUR1.11 billion. Despite annual revenue increasing by 6% organically to EUR4.61 billion, the fourth quarter saw a modest growth of 1.3% to EUR1.19 billion. Free cash flow also decreased by 32%, amounting to EUR355 million.
Future Projections and Workforce Reduction
Worldline anticipates organic revenue growth of at least 3% for the year ahead, with adjusted Ebitda expected to reach at least EUR1.17 billion and free cash flow at least EUR230 million. In an effort to adapt to changing consumer behaviors, the company plans to reduce its workforce by up to 8%, which translates to approximately 1,440 jobs being cut.
Chief Executive's Statement
Gilles Grapinet, Chief Executive of Worldline, highlighted the impact of macroeconomic slowdown and changes in consumer spending habits on the company's performance. He expressed the need for a more streamlined and efficient organization moving forward.
This shift in strategy reflects the evolving market dynamics that Worldline is navigating in order to remain competitive in the fintech industry.
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