Note
The app for independent voices
Sesame Street was so ahead of its time that they developed the perfect metaphor for the distractions of smartphones and social media before the technology existed.
A cool thing i’m doing a little work on:
You made it, you own it
You always own your intellectual property, mailing list, and subscriber payments. With full editorial control and no gatekeepers, you can do the work you most believe in.
Last Feb I casually posted this neck stretch on Instagram (that I thought everyone knew 🤷♀️) and it blew up in a way I couldn’t imagine. It’s now been viewed over 8 million times 🫣😬🤣 and has brought so many wonderful people into my world.
So give it a go, it’s a pretty lovely stretch. (Though it’s not actually magic, it’s just an up…
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Join the most interesting and insightful discussions.
Here I am with LAFC superstar, Denis Bouanga. My favorite soccer player currently, I actually met Bouanga randomly at an Adidas store of all places lol.
Edenred posted strong 1H24 results today.
Headline numbers vs. 1H23:
Operating revenue up 15.4% LFL
Other revenue up 57.8% LFL (higher rates)
EBITDA up 26.2% LFL
FFO up 18.3%
Net profit up 16.3%
The above numbers are also broadly reflected in 2Q24 YoY.
Other numbers:
Op. revenue by segment:
B&E up 15.6% LFL
Mobility up 21% LFL
Complementary Solutions up 2.9% (somewhat lacklustre)
Op. EBITDA margin up 140 basis points through operating leverage
Guidance is €1,265m in EBITDA for FY24 and float revenue for FY25 and FY26 is expected to be ≥€210m. With the acquisition and expansion of Spirii, most revenue in Mobility is now Beyond Fuel.
But the stock fell 7% to €39. Why? As mentioned in the thesis, eyes need to be on the threat of regulation (40% of revenue is regulated), first, and then on the Italian investigation, provided there is continued financial performance.
Regardless of your thoughts on equity research analysts, they do sometimes ask the right questions.
On French regulations:
Edenred met with Ms. Gregor, the minister, to explain and discuss the business model.
She reiterated that the government wanted more meal vouchers in France (Ticket Restaurant), as 20m workers lack access. All five stakeholders agreed to form a consensus: employees, employers, merchants, the state, and issuers.
Full digitalisation is necessary though, to lower the cost of this scheme; 30% of vouchers are still on paper
As to a rebalancing of fees between merchants and issuer, there was no guarantee that employer discounts would be banned.
Regs. have been postponed as the French lack a government right now; what’s certain is that every party wants more purchasing power for the population.
Dumazy concludes “the reform is a good reform.”
On Italy, there was nothing new, except that Edenred continued to work with Consip as its preferred supplier and is growing at double digits in the country.
In conclusion, then, this might be a good entry point if my thesis is correct: Edenred posted strong numbers and there’s positive news on French regulations, with nothing negative out of Italy.
See the original case here:
