Worldline plunges amid CEO exit, dimmed outlook

Investing.com -- Shares of Worldline (EPA:WLN) plunged on Friday after it announced that its CEO, Gilles Grapinet, has resigned and that it has also lowered its revenue and core earnings forecasts for 2024, citing specific performance issues in certain segments of its business.

At 3:56 am (0756 GMT), Worldline had plunged 15% to €7.16.

Deputy CEO Marc-Henri Desportes will step in as interim CEO, according to a company press release, effective September 30.

“The change in leadership adds some uncertainty but some may see this as a step in the right direction,” said analysts from Citi Research in a note.

The French payment group also announced plans for cost-cutting measures, marking its third time issuing a profit warning.

The company now forecasts organic revenue growth of around 1% for 2024, down from its earlier projection of 2% to 3%. 

““However, there still remains questions on visibility, which the once again lowered guidance will bring into the spotlight, along with the mid-term targets,” Citi said. 

Adjusted EBITDA is expected to be approximately 1.1 billion euros, revised down from the previous range of 1.13 to 1.17 billion euros.

Additionally, full-year free cash flow is projected to be around 200 million euros, lower than the previous estimate of 230 million euros.