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April 23, 2020

First-quarter 2020 revenue

Edenred reports further strong growth, partly offset by the initial lockdown measures introduced in response to the Covid-19 epidemic.

Strong growth at the start of the year thanks to the successful execution of the Next Frontier 2019-2022 strategic plan, despite the initial effects of the crisis

  • Double-digit operating revenue growth in the first two months of the year
  • In the new environment resulting from lockdown measures, which has changed work practices and consumption patterns: 
    • 850,000 clients, 50 million employee users and 2 million partner merchants can rely on Edenred’s digital platform and the strong commitment of its teams to ensure excellent business continuity and rapidly develop specific programs to distribute earmarked funds to workers and society at large; 
    • Edenred responds swiftly by launching a €100 million cost-saving plan in 2020 and revising intended capital expenditure for the year downward

Total revenue of €395 million in first-quarter 2020, up 6.3% like-for-like and up 3.1% as reported

  • Operating revenue up 6.6% like-for-like and up 3.5% as reported to €383 million
  • Other revenue down 3.4% like-for-like (-8.4% as reported)
  • Contribution from acquisitions to total revenue of 0.5% and negative currency effect of 3.7%

2020 outlook

  • A marked decrease in business expected in the second quarter, reflecting: 
    • in Employee Benefits, a lag effect as the portion of revenue generated by volumes consumed in the network of partner merchants is delayed;
    • the extension of stay at home and short-time working measures in most European countries and in the United States and their introduction in Latin America.
  • Strong fundamentals ensuring good resilience: 
    • a high-growth profile and robust financial position; 
    • offers covering essential needs (Eat, Move, Care, Pay);
    • a leading position on vastly underpenetrated markets in 46 countries;
    • an agile, multilocal organization;
    • a highly digitalized model ensuring relentless innovation around specific-purpose payment solutions.

Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “Amid the crisis currently unfolding in the world economy, Edenred’s purpose, which is to be the everyday companion for people at work, comes into its full meaning. Working harder than ever to ensure business continuity for our clients, partners and users, we can draw on our digital services and payments platform. In these difficult times for all economic players, Edenred is demonstrating agility and community spirit. For example, our ability to rapidly develop programs to distribute earmarked funds – that is, funds to be used under set conditions – has made it possible to implement new solutions responding to urgent needs arising from the crisis in several countries. Lastly, I know that I can count on the dedication of our teams, the responsiveness of our organization, the resilience of our business model and our excellent financial health to get us through this period as quickly and securely as possible.

 

Read the press release
 

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