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Worldline Spreads Widen On CEO Departure And Another Guidance Cut; Credit Negative

TECHNOLOGY

NR/BBB- EUR 27s/28s +10bp/+7bp


Clearly a credit negative development with their bonds selling off by up to 10bps already on the incoming uncertainty and second guidance cut in roughly six weeks, pushing the growth trajectory further below S&P’s expectations.


  • CEO Gilles Grapinet to depart; Marc-Henri Desportes appointed as interim CEO. New CEO search in progress. Desportes led the Merchant Services segment since 2024 and was previously deputy CEO.
  • FY24 guidance that was cut at H1 on 01 August has been cut again due to slow trading and performance issues in Pacific and global online sectors. Revised targets: organic revenue growth c.1% (from 2-3%), adjusted EBITDA EUR c.1.1bn (from EUR c.1.13-c.1.17bn), FCF EUR c.0.2bn (from EUR c.230mn). Power24 initiative on track to deliver EUR c.220mn cash cost savings by 2025.
  • November CMD postponed allowing next CEO to determine a new strategic plan.
  • Post Q2 bullet on the name; https://marketnews.com/worldline-underperfors-into-bb-territory-as-fy-growth-outlook-falls-short-of-sp-forecast.

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