French payment group Worldline to replace CEO, cuts outlook

:French payment group Worldline announced on Friday the departure of its CEO Gilles Grapinet and cut its 2024 revenue and core earnings guidance, citing “specific performance issues” in some of its businesses.
As of Sept. 30, Deputy CEO Marc-Henri Desportes will act as chief executive for an interim period, the group said in a press release.
The decision comes from Worldline’s board of directors, spokesperson Hélène Carlander said, adding it was aimed at preparing “a new strategic step for the company”.
Activist investor Bluebell last December urged the fintech company in a letter to shake up its board to “restore trust” amid rumours of a potential hostile takeover bid for the group.
“Over the summer, Worldline experienced slow trading conditions coupled with specific performance issues in our Pacific business and on some global online verticals (e.g. travel),” the company said. It declined to give details of those issues when asked by Reuters.
The group, which makes money by taking a fee from businesses when a customer makes a payment online or in person, said it would launch cost-management measures.
It now expects organic revenue growth of about 1 per cent for 2024, against a previous forecast of 2-3 per cent. It sees adjusted earnings before interest, tax and depreciation (EBITDA) around 1.1 billion euros ($1.2 billion), down from 1.13 billion-1.17 billion previously.
The group expects full-year free cash flow at about 200 million euros, compared with around 230 million previously.
Worldline previously cut guidance in July, citing a sharp decline in domestic consumption trends across Europe and uncertainty about a potential recovery.
($1 = 0.9024 euros)