First-half 2020 results

Edenred shows good resilience in the first half and a strong capacity to rebound thanks to its technological leadership.

Good resilience shown by the Group in the first half and a strong rebound in June, as lockdown measures were gradually lifted in Europe

Total revenue: €696 million, down 4.8% like-for-like and 10.4% as reported versus first half 2019
Operating revenue down 4.6% like-for-like, reflecting a 6.6% increase in the first quarter and a 15.4% decrease in the second quarter
- Strong rebound in June: down 9% like-for-like after declines of 19% and 18% in April and May
EBITDA of €255 million, down 12.8% on an organic basis and 17.8% as reported
Free cash flow generation of €113 million versus a negative €13 million in first half 2019, reflecting a temporary extension of retention times for funds allocated to users, a consequence of the health crisis
Net profit, Group share of €100 million

2020 outlook

Continued gradual recovery in Europe and a still uncertain environment in the Americas region. The second half is expected to bring a return to year-on-year organic growth in operating revenue, on a monthly basis
Confirmation of the €100 million cost savings plan for 2020 and the selective downward adjustment in intended capital expenditure for the year
2020 EBITDA target of between €540 million and €610 million
Net debt/EBITDA ratio target of under 2.8 at December 31, 2020

Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: "Throughout the first half of 2020, Edenred demonstrated its ability to generate double-digit growth up to mid-March, then its resilience during the toughest period of the health crisis and finally its strong capacity to rebound following the gradual reopening of Europe’s economies. In this respect, the crisis has highlighted the robustness of our business model and the relevance of our specific-purpose payment solutions. Our agility and digital leadership have enabled us to develop new earmarked funds programs within very short timeframes, thereby helping to provide targeted stimulus to the economy. Edenred is better positioned than ever to help companies, merchants and public authorities transition into the world of tomorrow.”