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Leading point-of-sale (POS) terminal provider Ingenico posted a 5% year-over-year (YoY) increase in revenue on a comparable basis to reach €727 million ($821 million) in Q4 2018, marking a deceleration from the 9% YoY growth in revenue the firm saw in Q4 2017.
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Ingenico saw mixed results throughout its segments and regions in Q4 2018.
- Merchant expansion drove revenue growth for Ingenico’s Retail Business unit.Ingenico’s Retail business unit — which includes online payments and revenue from small- and medium-sized businesses (SMBs) — grew 9% on a comparable basis to reach €364 million ($410 million) in revenue. Most notably, its SMB division grew 20% YoY — growth that Ingenico attributed to the expansion of its merchant client base. Further, the firm said that performance of SMBs in Germany accelerated significantly — driven by its merger earlier last year with German card acquirer Payone, which expanded Ingenico’s online and in-store merchant presence in Germany, Austria, and Switzerland.
- Meanwhile, the firm’s Banks and Acquirers segment saw mixed results regionally. Ingenico’s Asia Pacific segment grew 12% YoY, which the firm stated was driven by China outperforming expectations in Q4 2018 — with "robust demand" for POS products in the last weeks of the year. Most notably, Ingenico’s Latin America segment grew 61% annually, which the firm attributed to strong performance in Brazil specifically, as well as its partnerships with most local acquirers in the region. Meanwhile, North America revenues declined 13%, which Ingenico attributed to lower-than-expected contribution of EMV renewals in the US, which was slowed down by a longer certification process. Investing in new technology or partnering with firms to offer omnichannel solutions can allow Ingenico to boost volume throughout North America and its other major regions.
Ingenico has struggled in some areas to keep up with the rapidly digitizing and shifting payment environment. Ingenico changed leadership last November, when the CEO and chairman stepped down and his position was split between two executives — and new leadership could steer the company in a different direction.
Further, in its earnings call, Ingenico outlined its “Fit for Growth” transformation plan, which includes reviving growth across its segments through new operating models, which the firm anticipates will save it €35 million ($39 million).
If the firm is successful in accelerating volume, these growth efforts can allow Ingenico to cement its leading position in the space as competitors like Square, PayPal, and Worldpay are ramping up their offerings to cater to the shifting needs and expectations of merchants globally.
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Source: Business Insider – feedback@businessinsider.com (Rachel Green)