Third-quarter 2020 revenue

uploaded on 22 October 2020

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Third-quarter 2020 revenue

Edenred returns to organic growth in the third quarter, demonstrating resilience in the face of the crisis and a capacity to rebound 

Rebound in business in the third quarter amid a gradual easing of lockdown measures worldwide  

Total revenue of €357 million in the third quarter, up 0.5% like-for-like after falling by 15.5% in the second quarter:

  • Growth in operating revenue of 0.9% like-for-like in the third quarter, reflecting a return to Group growth in Europe (+7.3% like-for-like vs. -13.1% in the second quarter) and mixed improvements in the economic and health situation in Latin America (-7.6% like-for-like vs. -20.4% in the second quarter)
  • Other revenue down 9.9% like-for-like due to lower interest rates than in 2019  

Total revenue for the first nine months of the year of €1,053 million, down 3.0% like-for-like, demonstrating the resilience of Edenred’s business model in the face of the crisis, and down 10.0% as reported due to a negative currency effect (-7.4%)  

This performance was achieved thanks to a digital innovation strategy positioning Edenred well to take advantage of the growth trends that emerged or intensified at the height of the health crisis:

  • an increase in mobile payments and direct payments on meal delivery platforms,
  • greater use of remote working by companies,
  • a desire from governments to provide targeted stimulus to the economy,
  • more responsible consumption,
  • growing interest in automated corporate payments. 

2020 outlook

  • Business excellence and digitalization initiatives will contribute to business growth in the fourth quarter 
  • In line with its expectations, the Group confirms its €100 million cost savings plan for 2020
  • Edenred is narrowing its full-year 2020 EBITDA target to between €550 million and €600 million, despite new uncertainties generated by the health crisis in Europe


Bertrand Dumazy, Chairman and Chief Executive Officer of Edenred, said: “After proving its agility and resilience at the height of the health crisis, Edenred demonstrated its capacity to return rapidly to growth in the third quarter of the year. While much of Latin America was still in lockdown, the performances recorded in Europe attested to both Edenred’s sales dynamic and the validity of our solutions in a recovering economic environment. In a world being transformed by digital technology, Edenred provides innovative, practical solutions to changing work practices, enhances the efficiency of organizations and public and private social programs, and helps people adopt more responsible behavior. Despite the uncertainties associated with ongoing developments in the public health situation, we’re confirming our full-year targets for 2020.” 



Due to the current situation in Venezuela, the like-for-like performance and the currency effect are temporarily calculated excluding the country. Changes are calculated based on 2019 pro forma figures, which reflect the change in the breakdown between operating revenue and other revenue within total revenue in Brazil, effective since fourth-quarter 2019 and with no impact on full-year 2019 total revenue.

(in € millions) Third-quarter 2020 Third-quarter 2019 % change (reported) % change (like-for-like)
Operating revenue 346 379 -8.6% +0.9%
Other revenue 11 14 -26.4% -9.9%
Total revenue 357 393 -9.3% +0.5%


(in € millions) First nine months 2020 First nine months 2019 % change (reported) %change (like-for-like)
Operating revenue 1,021 1,130 -9.7% -2.8%
Other revenue 32 40 -21.2% -9.4%
Total revenue 1,053 1,170 -10.0% -3.0%

Total revenue

For the third quarter, total revenue was up 0.5% like-for-like, representing a sharp improvement over the second quarter (-15.5%). The figure was down 9.3% as reported, reflecting a negative currency effect (-10.0%) and a positive scope effect (+0.2%).  

For the first nine months of the year, total revenue came to €1,053 million, down 3.0% like-forlike versus the same period last year, demonstrating the resilience of Edenred’s business model. On a reported basis, total revenue was down 10.0%, reflecting unfavorable currency effects (-7.4%) and a slightly positive scope effect (+0.3%).   

Operating revenue

After a good start to the year and then a second quarter impacted by the health crisis and the introduction of strict lockdown measures in most countries around the world, Edenred returned to growth during the third quarter. The improvement was driven by the impact of Edenred’s shift to digital solutions (86% of business volume), a recovery in sales activity and the gradual easing of lockdown measures. On a like-for-like basis, operating revenue for the third quarter rose by 0.9% year-on-year, representing a strong rebound versus the second quarter (-15.4%).  

Resilient in the face of the crisis and able to bounce back in a less depressed health and economic environment, the Group recorded operating revenue of €1,021 million for the first nine months of 2020, down 2.8% like-for-like. On a reported basis, an unfavorable currency effect (-7.2%) and a slightly positive scope effect (+0.4%) resulted in a decrease of 9.7%. 

Operating revenue by business line

(in € millions) Third-quarter 2020 Third-quarter 2019 % change (reported) %change (like-for-like)
Employee benefits 207 229 -9.5% -1.4%
Fleet & Mobility Solutions 89 104 -14.8% -1.5%
Complementary solutions 51 46 +9.5% +17.5%
Total revenue 346 379 -8.6% +0.9%


(in € millions) First nine months 2020 First nine months 2019 % change (reported) %change (like-for-like)
Employee benefits 619 701 -11.8% -6.3%
Fleet & Mobility Solutions 262 298 -12.1% -1.4%
Complementary solutions 140 131 +7.3% +13.3%
Total revenue 1,021 1,130 -9.7% -2.8%


Employee Benefits recorded a strong rebound in the third quarter, with operating revenue down just 1.4% like-for-like (-9.5% as reported) versus a decrease of 20.6% in the second quarter. The business line’s operating revenue for the nine months to September 30 came to €619 million, representing 60% of the consolidated total and down 6.3% like-for-like from the prior-year period (-11.8% as reported).  

During the crisis, Edenred leveraged its digital solutions and its capacity for innovation in order to meet market demand and continue developing its services for the benefit of users and merchants. Examples include the faster roll-out of both the Group’s contactless mobile payment solutions, now available in 22 countries, and its app-to-app payment service on 67 partner meal delivery platforms. Thanks to these services, which make the Group’s paperless offering more attractive, the portion of digital solutions in Employee Benefits business volume in Europe was up 9 points versus third-quarter 2019.   

In Europe, and to a lesser extent in Latin America, the decline in short-time working measures and the reopening of stores and restaurants also contributed to the rebound in the third quarter, notably enabling employee users to restart spending their allocated funds and more particularly the funds accumulated during lockdown. Nonetheless, a large portion of these funds remained unspent at the end of September. This represents a pool of revenue for Edenred that will be realized as the funds are used in its merchant network.  

In the Fleet & Mobility Solutions business line, which represents 26% of the Group’s business, after a sharp decrease in the second quarter (-14.3% like-for-like), operating revenue contracted by 1.5% like-for-like (-14.8% as reported) in the third quarter. For the nine months ended September 30, 2020, the business line recorded operating revenue of €262 million, down a slight 1.4% like-for-like versus the prior-year period (-12.1% as reported). 

The third quarter saw a gradual improvement in business levels in both the heavy and light fleet segments, but also lower fuel prices than in third-quarter 2019. The good performance achieved by Edenred’s value-added services, such as maintenance management and toll payment solutions, confirms the validity of the Beyond Fuel strategy initiated as part of the Group’s strategic plan.  

In the Complementary Solutions business line, which includes Corporate Payment Services, Incentive & Rewards Solutions and Public Social Programs, operating revenue grew by 17.5% like-for-like (+9.5% as reported), representing an acceleration in the pace of growth versus the second quarter (+9.9%). The business line’s operating revenue for the nine months to September 30 came to €140 million, representing 14% of the consolidated total and up 13.3% like-for-like (+7.3% as reported).   

Growth was driven by the firm resilience of Incentive & Rewards programs in the period, as well as the contribution of public and private earmarked funds programs, which were rapidly introduced in the second quarter to effectively combat the impacts of Covid-19. For example, one program saw Edenred digitally distribute funds earmarked for food to 1.3 million British school children who usually receive free school lunches.  

The Corporate Payment Services business in North America continued to be heavily impacted by the contraction in transactions carried out by Group clients, particularly in the hospitality and media industries. The number of new contracts signed was nonetheless in line with preCovid internal targets, confirming the gradual ramp-up of distribution agreements, notably with top-tier banks, and reflecting growing interest among North American companies in secure, innovative digital payment solutions.  

Operating revenue by region

(in € millions) Third-quarter 2020 Third-quarter 2019 % change (reported) %change (like-for-like)
Europe 224 208 +7.9% +7.3%
Latin America 95 139 -31.8% -7.6%
Rest of the World 27 32 -14.9% -4.1%
Total revenue 346 379 -8.6% +0.9%


(in € millions) First nine months 2020 First nine months 2019 % change (reported) %change (like-for-like)
Europe 635 630 +0.8% +0.0%
Latin America 298 408 -27.0% -7.9%
Rest of the World 88 92 -4.5% +0.9%
Total revenue 1,021 1,130 -9.7% -2.8%


Business in Europe made a strong rebound in the third quarter, with growth of 7.3% like-for-like after a year-on-year reduction of 13.1% in the second quarter. In a region that represents 62% of Group operating revenue, nine-month operating revenue amounted to €635 million, stable like-for-like (+0.0%; +0.8% as reported).   

The rebound was particularly strong in France, where operating revenue increased by 9.5% likefor-like, after decreasing by 31.3% in the second quarter. For the nine months ended September 30, operating revenue came in at €175 million, down 6.3% on a like-for-like basis and as reported. After being hit hard by lockdown and short-time working measures in the second quarter, France has been benefiting from a significant catch-up effect since June, notably in the area of sales. In addition, on June 12, the standard daily limit on the use of Ticket Restaurant in restaurants was doubled, triggering a 50% increase in employee users’ average digital basket, notably enabling users to spend the funds accumulated during lockdown more rapidly. A portion of these funds was, however, still unspent at the end of September.   

More resilient than France in the second quarter (-5.9% like-for-like), Europe excluding France saw operating revenue grow by 6.4% like-for-like (+7.2% as reported) in third-quarter 2020, thanks to a recovery in sales activity and the gradual easing of lockdown measures. In the nine months to September 30, operating revenue grew by 2.7% like-for-like (+3.9% as reported) to €460 million. In Employee Benefits, the Group continued to develop its digital line-up, in a more favorable environment than in the second quarter. However, the situation varied from country to country, with some applying restrictive public health measures locally and for variable periods of time, resulting in a negative impact on Edenred’s business. In Fleet & Mobility Solutions, managed volumes, which began to recover late in the second quarter, continued to rebound during the third quarter, reflecting a gradual return to normal levels in both the heavy and light fleet segments.  

Latin America, which accounted for 29% of the Group's operating revenue for the first nine months of 2020, continued to be impacted by the health and economic crisis. In the third quarter, the region’s performance remained in negative territory but improved nonetheless, with operating revenue down 7.6% like-for-like (-20.4% in the second quarter) and down 31.8% as reported, reflecting a strong negative currency effect during the period. However, performance remained mixed across the region, ranging from a noticeable improvement in Brazil to a still largely morose situation in Hispanic Latin America. For the nine months ended September 30, operating revenue came to €298 million, down 7.9% like-for-like (-27.0% as reported).   

Brazil saw its performance recover significantly in the third quarter, with the decrease in operating revenue limited to 4.4% on a like-for-like basis (-22.2% in the second quarter). For the full nine months to September 30, operating revenue contracted by 6.9% like-for-like (-28.6% as reported). The performance of the Employee Benefits business line was impacted by the temporary closure of restaurants in the first part of the quarter. Following on from the progress made in the first half of the year, app-to-app payment solutions for meal delivery platforms continued to ramp up, with more than one million transactions carried out in the third quarter. After demonstrating resilience at the height of the crisis, the Fleet & Mobility Solutions business line put in a good performance, notably thanks to the success of maintenance management solutions. 

In Hispanic Latin America, operating revenue remained sharply down in the third quarter, decreasing by 15.4% year-on-year on a like-for-like basis (-16.0% in the second quarter), due to the lockdown measures maintained in these countries during the period. In the year-to-date period, the region’s operating revenue was down 10.5% like-for-like (-23.1% as reported). In Mexico, Edenred’s main market in the region, both Employee Benefits and Fleet & Mobility Solutions continued to be heavily impacted by the crisis, amid an economic downturn, increased unemployment and lower fuel prices.   

In the Rest of the World, operating revenue was down 4.1% like-for-like in the third quarter. This performance reflects the resilience of the Group’s businesses across the region, with the exception of North America, which continued to be heavily impacted by the crisis, resulting in a slower-than-expected economic recovery. The region’s operating revenue for the first nine months of the year came to €88 million, representing 9% of the consolidated total and up 0.9% like-for-like (-4.5% as reported).

Other revenue

Other revenue contracted by 9.9% like-for-like (-26.4% as reported) in the third quarter and by 9.4% like-for-like (-21.2% as reported) for the first nine months of the year, coming to €32 million for the nine-month period. Despite the increase in the float as a result of the temporary extension of the retention time for allocated funds, interest rates decreased across the board worldwide, notably in non-eurozone countries. On a reported basis, other revenue was also impacted by unfavorable changes in exchange rates, notably in Latin America. 



For the end of 2020, in Employee Benefits, Edenred expects to continue to benefit from the impact of digitalizing its solutions and from the delayed revenue generated with merchants. Performance in the Fleet & Mobility Solutions business line is expected to reflect sustained demand in Europe and Latin America but, compared with last year, will be held back by the high basis of comparison and by fuel prices, which are expected to be lower than at end-2019. In Complementary Solutions, Edenred anticipates that fourth-quarter growth will be weighed down by the lower number of transactions in Corporate Payment Services and the end of certain earmarked funds programs developed at the height of the crisis.  

Despite the improvement observed in the third quarter, Edenred notes that uncertainties associated with the health crisis have deepened in Europe, where local lockdowns and other restrictive measures have been re-introduced, and that Latin and North America continue to be affected by a morose economic and health environment. These factors could weigh down the Group’s growth in the fourth quarter, despite the improved sales dynamic.  

In terms of profitability, in line with its expectations, the Group confirms its €100 million cost savings plan for 2020.  Based on the Group’s resilience in the first half of the year, its rebound in the third quarter and the ongoing cost savings plan, Edenred is narrowing its full-year 2020 EBITDA target to between €550 million and €600 million  

Edenred also maintains its target that net debt at end-2020 will be below 2.8x EBITDA.  

Underpinned by strong fundamentals, the Group is weathering the crisis with resilience. Its technological expertise and agile organization make it well positioned to seize new opportunities in markets undergoing digital transformation.  Thanks to its robust business model, strengthened digital leadership and the increased demand for earmarked funds programs, Edenred has everything it needs to ensure all of its business lines rebound quickly, and to pursue its strategy of sustainable and profitable growth with a focus on product and technology innovation. 


  • Edenred finalizes the acquisition of Cooper Card’s employee benefits operations in the Brazilian market 

In September 2020, following approval from the Brazilian Central Bank, Edenred finalized the acquisition of Cooper Card’s client portfolio for food-related employee benefits in Brazil (170,000 active users), announced on May 8, 2020. With this acquisition, Edenred is consolidating its integration into the economic fabric of Paraná, one of the country’s most populous and dynamic states.  

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