July 25, 2018 / 5:01 PM / a year ago

France's Ingenico cuts core profit outlook on Iran exit, currency headwinds

July 25 (Reuters) - French payment specialist Ingenico Group reduced its full-year outlook on Wednesday, citing negative impact from currencies and its planned exit from Iran in response to the re-imposition of U.S. sanctions.

Ingenico plans to exit its distribution partnership in Iran before November 4, when U.S. starts imposing sanctions. The country was expected to contribute 16 million euros to 2018 core profit.

The company now expects 2018 earnings before interest, taxes, depreciation and amortisation (EBITDA) of at least 545 million euros ($636.4 million), down from 545-570 million euros previously.

The company’s first-half EBITDA fell by 21 percent to 193 million euros ($225.4 million), missing a company-circulated earnings poll that had on average expected 215 million euros. Currency had a 71 million euro negative impact on first-half results.

Ingenico also said it finalised a joint venture deal with Sparkassen-Finanzgruppe to combine BS Payone and Ingenico Retail in Germany, Austria and Switzerland (DACH), making it the leading payment services provider in the region.

The payments sector has seen a wave of consolidation as companies seek to build scale to help them invest in technology, navigate increasingly complex regulations and cash in on the switch to electronic payments.

Chief Executive Officer Philippe Lazare said the DACH region has the largest growth opportunity in Europe.

($1 = 0.8564 euros)

Reporting by Nolwenn Brossier in Gdynia, additional reporting by Thyagaraju Adinarayan; Editing by Adrian Croft

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