CORRECTED-UPDATE 1-Edenred says Venezuela exchange rate move may dent profit

Fri Dec 27, 2013 3:58am EST

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PARIS Dec 27 (Reuters) - French voucher and prepaid card provider Edenred said a change in the exchange rate between the Venezuelan bolivar and the U.S. dollar would cut its full-year recurring profit after tax by 5 percent if applied to business transactions.

The group said 2013 earnings before interest and tax (EBIT) would reach between 340 million and 350 million euros, including the 28 million ($38.3 million) hit.

The impact on year-end consolidated net debt would be around 140 million euros, Edenred said in a statement on Friday.

The forecast was based on a Venezuelan government announcement on Monday that the exchange rate was changing from 6.3 bolivar to the dollar to 11.3 for transactions by non-residents, Edenred said.

The owner of the Ticket Restaurant brand had already said in October that it expected core earnings to come in at the low end of its targeted range of 370 million to 390 million euros due to a bigger-than-expected fall in exchange rates for emerging market currencies.

Edenred, which also offers employee benefit management services and incentive schemes, competes with caterers Sodexo and Compass, as well as credit card networks MasterCard and Visa.

The company posted a 6.7 percent rise in revenue in the first nine months of 2013 to 780 million euros following strong growth in Latin America. ($1 = 0.7303 euros) (Reporting by James Regan; Editing by Blaise Robinson and Jane Merriman)

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