Edenred (EDEN) Q3 2024 TU earnings summary

Executive summary

• Achieved double-digit like-for-like revenue growth in Q3 2024, with total revenue at €682 million, up 11.5% year-over-year; nine-month revenue reached €2,076 million, up 15.9% like-for-like.

• Growth driven by strong performance in underpenetrated core markets, expansion into non-regulated segments, and successful acquisitions.

• SBTi approved carbon reduction targets, aiming for net zero by 2050.

• 2024 EBITDA guidance confirmed and narrowed to €1.245–1.285 billion; cash conversion ratio above 70%.

• Italian regulatory risk (potential 5% cap on merchant fees) flagged, but no impact on 2024 guidance; 2025 outlook adjusted for possible scenarios.

Financial highlights

• Q3 2024 operating revenue grew 10.8% like-for-like to €619 million; total revenue up 11.5% to €682 million; other revenue up 18% to €63 million.

• Nine-month 2024 total revenue: €2,076 million, up 15.9% like-for-like; operating revenue: €1,889 million, up 13.8% like-for-like.

• Benefits & Engagement (55–65% of revenue) up 11.7% like-for-like; Mobility (24%) up 13.2%; Complementary Solutions up 0.9%.

• Latin America operating revenue up 16.7% in Q3 and 20.2% in 9M 2024, with Brazil and Mexico as key drivers.

• Currency effects were negative, mainly due to Latin American currencies, partially offset by acquisitions.

Outlook and guidance

• 2024 EBITDA guidance confirmed and narrowed to €1.245–1.285 billion, implying ~20% like-for-like growth and >70% EBITDA to FCF conversion.

• 2025 outlook: minimum 12% like-for-like EBITDA growth if Italian risk does not materialize; minimum 10% if it does.

• Other revenue expected to normalize to at least €210 million in 2025, with no further decline in 2026.