French voucher group Edenred beats half-year sales forecast
By Dimitri Rhodes and Anna Peverieri
July 23 (Reuters) -French vouchers and benefit cards provider Edenred EDEN.PA reported first-half revenue slightly above expectations on Tuesday, citing the successful integration of Reward Gateway which it acquired in May 2023.
The group, which helps companies manage staff expenses and benefits and is known for its "Ticket Restaurant" vouchers, reported an 18.5% rise in half-year group revenue to 1.40 billion euros ($1.52 billion), just ahead of analysts' forecast of 1.39 billion euros in a company-compiled consensus.
Inflation and high interest rates have boosted the results of benefits providers such as Edenred and Pluxee PLX.PA, as employers sought ways to support staff without raising wages, but potential future rate cuts by the European Central Bank could pose challenges to sustaining this growth.
Edenred's other revenues grew by 57.8% in the first six months of the year, boosted by interest rate hikes in the euro zone throughout 2023.
The company said it expects a core profit (EBITDA) of between 1.23 billion and 1.30 billion euros for the full year, after previously forecasting like-for-like growth of above 12%.
It also confirmed its target for an annual total revenue of around 5 billion euros by 2030.
($1 = 0.9187 euros)
Reporting by Anna Peverieri and Dimitri Rhodes in Gdansk; editing by Milla Nissi
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