By Dimitri Rhodes and Lucie Barbier April 23 (Reuters) - French vouchers and benefit cards provider Edenred on Thursday reported first-quarter revenue above expectations, helped by new customer wins
Edenred beats earnings forecasts as new clients boost growth
By Dimitri Rhodes and Lucie Barbier
Strong First-Quarter Performance Driven by New Clients
April 23 (Reuters) - French vouchers and benefit cards provider Edenred on Thursday reported first-quarter revenue above expectations, helped by new customer wins and increased revenue per client.
Financial Results and Analyst Reactions
Edenred's organic revenue grew 3.1% to 730 million euros ($855 million) in the first quarter of 2026, above the 712 million euros expected by analysts in a consensus provided by the company.
Shares in the company were up 3.9% at 0749 GMT. Analysts at at J.P. Morgan expected "modest relief" for the stock, which has come under pressure from recent regulation changes.
CEO Statement on Growth Strategy
"In an uncertain environment, we are ... acquiring new customers and generating additional value per user, particularly through upselling and cross-selling initiatives," CEO Bertrand Dumazy said in a press release.
Guidance and Regulatory Impact
The group confirmed its guidance for 2026, including a drop in earnings before interest, taxes, depreciation and amortization (EBITDA) of between 8% and 12%.
Impact of Regulatory Changes in Key Markets
The decline was mainly driven by a shortfall of 230 million euros due to regulatory changes in Brazil and Italy, two of Edenred's largest markets, finance chief Virginie Duperat-Vergne told journalists in a press call.
Brazil’s Fee Caps and Market Response
In Brazil, the government imposed caps on the fees that merchants pay to voucher providers like Edenred, cutting into a key source of revenue.
Peer Pluxee said in January that it expected a 50% revenue drop in Brazil by next year.
Shifting Focus to Emerging Markets
Benefits providers like Edenred and Pluxee are increasingly relying on emerging markets like Latin America to drive profits as they cope with slowdowns in their main business regions amid economic uncertainty.
Pluxee said in April that clients were being more cautious and companies were freezing hiring in Europe.
Customer Acquisition and Product Performance
Duperat-Vergne said that Edenred, which helps companies manage staff expenses and benefits and is known for its "Ticket Restaurant" vouchers, saw little to negative growth in the vouchers it distributes to existing clients. However, she noted a jump in customer acquisitions in the quarter.
($1 = 0.8536 euros)
(Reporting by Dimitri Rhodes and Lucie Barbier in Gdansk; Editing by Lisa Shumaker and Matt Scuffham)
