(Reuters) -Shares in Worldline slumped nearly 40% on Wednesday after the French payment company cut its full-year targets as the economic slowdown hurt its business in key markets including Germany.
The group also said it had cut ties with some of its merchants to reduce risks “in light of an increase in cybercrime.”
The group now sees organic sales growth in 2023 of between 6% and 7%, compared with 8% to 10% previously. It also forecast a 150 basis point drop in its operating margin before depreciation and amortization for 2023, compared with a previous forecast of a 100 bps increase.
“Worldline missed sales estimates in every division…These results are a disappointment in terms of the full-year miss and also that long-term targets have been discarded,” JPMorgan analysts said.
(Reporting by Lina Golovnya; Editing by Silvia Aloisi)
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