Download PDF

1. Company Snapshot

1.a. Company Description

Worldline SA provides payments and transactional services to financial institutions, merchants, corporations, and government agencies in France, rest of Europe, and internationally.The company operates through Merchant Services; Financial Services; and Mobility & e-Transactional Services segments.The Merchant Services segment offers commercial acquiring, terminal, omnichannel payment acceptance, private label card and loyalty, and digital retail services.


The Financial Services segment provides issuing processing, acquiring processing, digital and mobile banking, and account payments, as well as payments processing back-office, clearing and settlement, and trade order management and financial data services; and fraud risk management, ATM management, trusted authentication, and payment software licensing solutions.The Mobility & e-Transactional Services segment offers trusted digitization, e-ticketing, e-consumer and mobility, customer engagement, and mobility and traceability solutions and services, as well as digital identity, digital signature, and cloud services.The company was formerly known as Atos Worldline S.A.S. and changed its name to Worldline SA in April 2014.


Worldline SA was founded in 1973 and is headquartered in Puteaux, France.

Show Full description

1.b. Last Insights on WLN

Worldline's recent performance was negatively impacted by a combination of factors. The company's Q3 2025 revenue was down 0.8% organically, in line with expectations, but its profit forecast was narrowed, and it signaled more disposals to come. An external review of its merchant portfolio revealed high brand risk, but the company has confirmed proper risk and compliance frameworks are in place. Additionally, Worldline's CFO departure and subsequent replacement to drive cash flow and growth may have added to investor uncertainty. A €500m capital raise was announced to fund turnaround efforts.

1.c. Company Highlights

2. Worldline's H1 2025: A Challenging but Transformative Period

Worldline's H1 2025 revenue reached €2.2 billion, with an organic decline of 3.4% compared to the prior year. The company's adjusted EBITDA was €401 million, representing 18.2% of revenue. Normalized net income group share was €121 million, while reported net income group share was a loss of €4.2 billion, primarily due to a €4.1 billion non-cash goodwill impairment. Free cash flow stood at €40 million, with a conversion rate of around 10%. The EPS came out at €0.4283, relative to estimates at €0.577.

Publication Date: Aug -04

📋 Highlights
  • Revenue Performance: - H1 2025 revenue was €2.2 billion, with a 3.4% organic decline year-over-year.
  • Adjusted EBITDA: - Reached €401 million, representing 18.2% of revenue, down from prior year.
  • Net Loss: - Reported a €4.2 billion loss, primarily due to a €4.1 billion non-cash goodwill impairment.
  • Free Cash Flow: - Generated €40 million, with a 10% conversion rate from adjusted EBITDA.
  • MeTS Divestment: - Agreed to sell MeTS for up to €410 million, representing an 11x pro forma stand-alone adjusted operating income for 2024.

Financial Performance and Margin Analysis

The company's financial performance was impacted by a decline in revenue, primarily due to a 3.4% organic decline in Merchant Services and a 10.6% decline in Financial Services. However, Worldline's management expects to deliver €50 million in cash cost savings announced in April, with a clear objective to overdeliver it. The company's adjusted EBITDA margin was 18.2%, which is a relatively stable margin despite the decline in revenue.

Valuation and Ratios

Worldline's valuation metrics suggest that the stock may be undervalued. The P/E Ratio is -3.0, indicating that the stock may be oversold. The P/S Ratio is 0.19, and the EV/EBITDA ratio is 7.97. The Free Cash Flow Yield is 35.93%, which is a relatively high yield. The Net Debt / EBITDA ratio is 5.72, which is a manageable level of debt.

Segment Performance and Outlook

In Q2, Worldline delivered external revenue of €1.14 billion, in line with expectations. Merchant Services revenue decreased by 3.4%, while Financial Services sales were down 10.6%. MeTS revenue was up around 2%. For 2025, Worldline expects a low single-digit decline in top-line organic growth, with H2 stable or slightly negative. Adjusted EBITDA is expected to be between €825 million and €875 million, and free cash flow is expected to be stable.

Management's Commentary and Guidance

Management expressed confidence in the company's assets, including its multi-local positioning in Europe and its acquiring presence. They stated that the situation is challenging but that the light is not far away, and they are working to fix issues and restore performance. The company's guidance for 2025 assumes a similar margin profile and growth as MeTS, which is low but constant.

Challenges and Strategic Milestones

The company has made significant progress in addressing challenges, including the entry into exclusive negotiations for the disposal of MeTS activities and the refinancing of the company. Worldline has also launched a comprehensive assessment of its compliance and risk framework, with interim reassuring results from audits on its merchant portfolio. The disposal of MeTS and the interim results of the audit of merchant portfolios are key strategic milestones.

3. NewsRoom

Card image cap

The Bull Case For Worldline (ENXTPA:WLN) Could Change Following Launch of Android SmartPOS in UK

Nov -30

Source:

Card image cap

A Look at Worldline (ENXTPA:WLN) Valuation Following UK Launch of Android SmartPOS Solution

Nov -28

Source:

Card image cap

Tracking the Shifting Narrative for Worldline as Analyst Sentiment and Outlook Evolve

Nov -21

Source:

Card image cap

Worldline announces €500m capital raise to fund turnaround efforts

Nov -07

Source:

Card image cap

Payments firm Worldline plans 500-million-euro capital injection

Nov -06

Source:

Card image cap

WORLDLINE : 2025 Capital Markets Day - Press release

Nov -06

Source:

Card image cap

Why Analysts See Worldline’s Story Changing Amid Downgrades and Strategic Shifts

Oct -25

Source:

Card image cap

Shift4 to purchase Bambora North America from Worldline

Oct -23

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.41%)

6. Segments

Merchant Services

Expected Growth: 5%

Worldline SA's Merchant Services growth is driven by increasing e-commerce adoption, omnichannel payment demand, and digital transformation in the retail industry. Additionally, the rise of contactless payments, growth in online transactions, and the need for secure payment solutions are contributing to the segment's 5% growth.

Financial Services

Expected Growth: 7%

Worldline SA's 7% growth in Financial Services is driven by increasing adoption of digital payments, growing demand for online banking and e-commerce, expansion into new markets, and strategic partnerships. Additionally, investments in innovation, such as contactless payments and blockchain technology, are contributing to the segment's growth.

Mobility & E-transactional Services

Expected Growth: 5%

Worldline SA's Mobility & E-transactional Services segment growth is driven by increasing adoption of contactless payments, rising demand for digital wallets, and growing need for secure online transactions. Additionally, the shift towards cashless societies, government initiatives promoting digital payments, and strategic partnerships with banks and fintech companies are also contributing to the segment's 5% growth.

7. Detailed Products

Merchant Services

Worldline's Merchant Services provide a comprehensive range of payment solutions for merchants, including online payment processing, point-of-sale solutions, and card-not-present transactions.

Terminals, Payment & Digital Services

This segment offers a range of payment terminals, online payment solutions, and digital services, enabling merchants to accept payments securely and efficiently.

Financial Services

Worldline's Financial Services provide a range of solutions for financial institutions, including payment processing, card issuing, and digital banking services.

Mobility & e-Transactional Services

This segment offers a range of services for mobility and e-transactional solutions, including contactless payments, mobile payments, and e-ticketing.

Digital Banking Platform

Worldline's Digital Banking Platform provides a comprehensive digital banking solution for financial institutions, enabling them to offer online and mobile banking services to their customers.

8. Worldline SA's Porter Forces

Forces Ranking

Threat Of Substitutes

Worldline SA operates in the payment industry, which is characterized by a moderate threat of substitutes. While there are alternative payment methods, such as cash and other digital payment systems, Worldline's services are widely used and have a strong market presence.

Bargaining Power Of Customers

Worldline SA's customers, primarily banks and financial institutions, have limited bargaining power due to the company's strong market position and the complexity of its services.

Bargaining Power Of Suppliers

Worldline SA has a diversified supplier base, and its suppliers have limited bargaining power due to the company's large scale and strong market position.

Threat Of New Entrants

The threat of new entrants in the payment industry is low due to the high barriers to entry, including the need for significant investment in technology and infrastructure, as well as the requirement for regulatory approvals.

Intensity Of Rivalry

The payment industry is highly competitive, with several established players competing for market share. Worldline SA faces intense rivalry from companies such as Ingenico, Atos, and FIS.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.67%
Debt Cost 3.95%
Equity Weight 69.33%
Equity Cost 10.70%
WACC 8.63%
Leverage 44.24%

11. Quality Control: Worldline SA passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nexi

A-Score: 5.2/10

Value: 7.2

Growth: 7.9

Quality: 5.2

Yield: 4.4

Momentum: 2.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
IONOS

A-Score: 4.9/10

Value: 3.5

Growth: 7.8

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

View Full Report
Stock-Card
Wix

A-Score: 4.0/10

Value: 3.6

Growth: 9.0

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
CyberArk

A-Score: 4.0/10

Value: 2.0

Growth: 6.0

Quality: 3.1

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
AutoStore

A-Score: 3.5/10

Value: 1.7

Growth: 9.2

Quality: 6.5

Yield: 0.0

Momentum: 3.5

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Worldline

A-Score: 2.6/10

Value: 9.8

Growth: 3.1

Quality: 2.0

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.35$

Current Price

1.35$

Potential

-0.00%

Expected Cash-Flows