Focus on Digital Developments: a Winning Bet for Edenred

The French issuer focusing on prepaid solutions for corporate customers just released their “First-Half 2018 Results” causing some surprise as these figures exceed expected growth targets. The group has been implementing a new dynamic, boosted by a multiservice digital strategy. Edenred will keep improving these results via, for instance, attracting an even greater number of customers.

For H1 2018, their total income reached €665 million. This leader in transactional solutions further stresses their status through highlighting sustainable growth and reporting €215 million EBIT (+20.3%). Edenred stock prices also increased by 9%.

These results can partly be accounted for by their €300 million investment in digitalising their services. Their dematerialised solutions for companies, employees and merchants led to new developments on several key markets. For instance, Edenred allows their UAE customers to transfer money to their relatives. In Brazil, a partnership with a local bank helped design financing solutions for their merchants.

These new solutions by Edenred soon became popular. One example could be their integrated payment services on Deliveroo platform. This API-based solution is successful in France, as the market for meal orders and deliveries is also witnessing strong growth.

Comments – High growth perspectives for Edenred

Over the past two years, Edenred has been committing to applying in-depth strategic changes, aiming for services and a digital approach, and leading to further development opportunities for their partner merchants/restaurants. The group also took the lead on the m-payment market, and implemented 15 dedicated solutions in 11 countries. Their growth strategy involves crafting market-specific services and attracting more customers.

Just as well, Edenred confirms that innovative products and technologies are key differentiation factors, and strong growth levers. In line with their dynamic diversification strategy, they are also developing new services, including options to split orders between several people and book restaurant tables. Additional partnerships could soon be announced with platforms enabling customers to order meals online.