Worldline experienced a significant decline in its share price on Friday following the resignation of its CEO, Gilles Grapinet, and a downward revision of its revenue and core earnings forecasts for 2024, attributed to specific performance challenges in certain business segments.
As of 3:56 am (0756 GMT), shares had dropped 15% to €7.16.
The company announced that Deputy CEO Marc-Henri Desportes will assume the role
of interim CEO, effective September 30.
Analysts from Citi Research noted that while the leadership
change introduces some uncertainty, it could also be perceived as a positive
development. Furthermore, the French payment firm revealed plans for
cost-cutting initiatives, marking its third profit warning.
The revised forecast now anticipates organic revenue growth
of approximately 1% for 2024, a decrease from the previous estimate of 2% to
3%.
Citi highlighted ongoing concerns regarding visibility,
which the newly adjusted guidance will bring to the forefront, alongside
mid-term targets.
Adjusted EBITDA is now expected to be around 1.1 billion
euros, down from the earlier range of 1.13 to 1.17 billion euros.
Additionally, the full-year free cash flow is projected to
be about 200 million euros, lower than the prior estimate of 230 million euros.