Worldline Announces CEO Departure and Revises 2024 Forecast Amidst Performance Issues

September 13 — French payment giant Worldline (WLN.PA) has announced a significant leadership change and revised its financial outlook for 2024. The company revealed on Friday that CEO Gilles Grapinet will be stepping down, with Deputy CEO Marc-Henri Desportes set to serve as interim chief executive starting September 30.

The logo of payments company Worldline is seen at the company headquarters in the financial and business district of La Defense, near Paris, France, October 26, 2023.

The decision to replace Grapinet follows Worldline's board of directors' assessment of "specific performance issues" impacting certain segments of its business. The company cited slow trading conditions and challenges in its Pacific operations and some global online verticals, including travel, as key factors.

The leadership change comes amid external pressure from activist investor Bluebell, which last December called for a board shake-up to "restore trust" amidst speculation of a potential hostile takeover bid.

In conjunction with the leadership transition, Worldline has cut its revenue and core earnings guidance for 2024. The company now anticipates organic revenue growth of approximately 1%, a reduction from its previous forecast of 2-3%. Adjusted earnings before interest, tax, and depreciation (EBITDA) are projected to be around 1.1 billion euros ($1.2 billion), down from an earlier range of 1.13 billion-1.17 billion euros. Free cash flow expectations have also been lowered to about 200 million euros, from around 230 million euros previously.

Worldline had already adjusted its guidance in July, attributing the changes to a sharp decline in domestic consumption trends across Europe and uncertainty regarding a potential recovery. The company also plans to implement cost-management measures to address its current challenges.