Underscoring investor skittishness and low tolerance for earnings disappointments, French payments firm Ingenico Group fell nearly 13% in heavy volumes, after the cutting its full-year targets in the wake of a “sudden and significant decline” in US sales.
In the trading update note, the company stated, “In recent weeks Ingenico Group has been facing a sudden and significant decline in its US market which accounts for approximately 10% of Group revenues. The Group now anticipates a strong decline in sales for this country in the second half of 2016.
This market decline has been caused by a relaxation in the EMV rules. The result of this is a slowing down in the pace of adoption of EMV technology, of which Ingenico Group is one of the main providers. The relaxation of the rules is temporary, and Ingenico Group remains confident in the continued roll-out of EMV in the United States which should continue to progress in 2017 and beyond.
In Brazil, the economic deterioration is affecting the Group’s performance. Despite resilient performances in other Latin American countries, the decline in this region for the second half of the year is now anticipated to be greater than in the first half.”
The statements ends on a high note though: “In all other geographies, as well as for the ePayments division, Ingenico Group will deliver excellent performances. The Group highlights the continued solid growth dynamics in Asia Pacific and in Europe.
The ePayments division will also deliver strong growth in the second half of the year, enabling the Group to accelerate its transition to on-line and mobile services activity.”
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