Case study: Edenred reports sustained growth thanks to the acquisition of Reward Gateway

Edenred, a leader in employee benefits and prepaid payment solutions such as Ticket Restaurant, has seen notable growth in sales and profits recorded in the first half of 2024. The acquisition of Reward Gateway in May 2023 was a key growth driver, as was the Group's ambition to diversify its employee benefits offering.

FACTS

• This summer, Edenred published its latest results. And they turned out to be very positive. Net profit for the first half of 2024 was up 16% at 235 million euros.
• Sales came to 1.39 billion euros, up 18.5% on the first half of 2023.
• Edenred's gross operating profit (Ebitda) jumped by 23.7% to 597 million euros.
• However, despite these positive figures, Edenred's share price fell by 9.18% on the stock market. This was due to results not fully meeting analysts' expectations, and a marketing miss around the Paris 2024 Olympic Games.
• Edenred is forecasting Ebitda for 2024 of between 1.23 and 1.3 billion euros, compared with 1.09 billion in 2023.

CHALLENGES

• Growth driven by the acquisition of Reward Gateway: The acquisition of Reward Gateway, completed in May 2023, has been a key driver of Edenred's growth. The acquisition was aimed at diversifying and enriching the Group's offering, particularly in the area of employee benefits.
• Diversification pays off: Edenred's ability to multiply its services is paying off. In particular, the group has worked to strengthen its position in the mobility market, but has also embarked on experiments with a “crypto” meal voucher offer and NFT collection management.

MARKET PERSPECTIVE

• The prepaid and employee benefits market continues to grow, with increasing demand for integrated solutions such as those offered by Edenred.
• Edenred's solid performance, despite partly unmet investor expectations, illustrates the growing importance of digital solutions and strategic acquisitions in the sector.
• The expansion of Reward Gateway in Europe and its expected medium-term impact are key elements in strengthening Edenred's position in its fast-changing market.