Revenue for the first half of 2023

07.08.2023

Thanks to the sound execution of its Beyond22-25 plan, Edenred confirms its strong growth momentum, quarter after quarter

Edenred reports a strong increase in earnings compared with first-half 2022

- Total revenue of €1,163 million in first-half 2023, up 26.1% as reported (+25.5% like-for-like)

• Operating revenue of €1,081 million, up 20.0% on a like-for-like basis, including
  a 19.6% rise in the second quarter
• Other revenue of €82 million, versus €31 million in first-half 2022, driven by business
  growth and higher interest rates

- EBITDA of €483 million, up 32.5% as reported (+35.2% like-for-like)

• EBITDA margin of 41.5%, up 3.1 percentage points like-for-like

- Net profit, Group share of €202 million, up 18.8%
- Strong cash generation: funds from operations before other income and expenses (FFO)
of €338 million, up 12,9%
- Net debt: €1.85 billion at end-June 2023 after the acquisition of Reward Gateway in May
2023 for approximately €1.3 billion

Edenred has significantly strengthened its range of employee engagement solutions with two acquisitions

- Acquisition of Reward Gateway, a fast-growing platform, leader in the United Kingdom
and Australia and also present in the United States, with the aim of rolling out the offering
in another six major countries in Continental Europe
- Acquisition of GOintegro, a leading platform in Latin America, active in seven countries

Edenred continues to extend its value proposition

-  An enhanced digital experience to encourage engagement and use of its solutions
- New high value-added Beyond Food, Beyond Fuel and Beyond Payment services for
clients, partner merchants and users
- Ongoing investments in the technology infrastructure of its platform, in particular through
the development of API1 connections to aggregate and distribute third-party solutions

By continuing to roll out its Beyond22-25 strategic plan, Edenred expects to achieve
new record results in 2023

- EBITDA expected to total between €1,020 million and €1,090 million for full-year 2023 vs.
€836 million for full-year 2022.

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Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said:

“The robust growth Edenred has seen in recent periods continued apace in first-half 2023. Thanks to the hard work and talent of our 12,000 employees, this growth is proving ever more profitable, while we continue investing in our technology assets. We are pressing ahead with our Beyond22-25 strategic plan to further penetrate our markets, enhance the experience of our clients, partner merchants and users, and enrich our offering of increasingly relevant solutions. During the first half, we notably strengthened our position as the most trusted global Employee Benefits platform by acquiring Reward Gateway, which operates in the UK, Australia and the US, and GOintegro in Latin America. The acquisition of these two leading employee engagement platforms will enable us to provide HR departments with an even more comprehensive range of solutions, making their organizations more attractive so they can attract and retain top talent. We also plan to expand Reward Gateway’s coverage to a selection of key countries in Continental Europe. Lastly, thanks to the agility of our platform, we are starting to distribute third-party services, such as salary advance solutions, to better meet the expectations of a fast-changing world of work. After this strong first half, our outlook for the second half of the year is just as promising, as we target EBITDA of between €1,020 million and €1,090 million for full-year 2023.”

See more:

The news on the official website of the Edenred Group
Earnings for the first quarter of 2023
Annual financial results for 2022