Worldline Posts Solid Revenue Growth In Q3, Announces Planned Disposal of Terminals Business

After market close on Oct. 26, narrow-moat Worldline reported third-quarter revenue of EUR 960 million, up 8.3% on an organic basis compared with the year-ago period. The payment-services provider also finally revealed what it plans to do with its terminals business, opting for disposal. We had previously voiced our preference for a sale of this asset. We are maintaining our fair value estimate of EUR 91 per share as we await greater information of the group’s new strategy during its investor day on Oct. 27. Moreover, details around the technicalities of the planned disposal are sparse. As such, we are likely to continue our modeling of the group as if it were retaining the terminals business until we have enough data points to segregate the asset properly. We don’t anticipate a change to our narrow moat rating.