Finance
Italian payments group Nexi’s stronger revenue beats expectations
Global Banking & Finance Review®
Company
(Reuters) -Italian payments group Nexi on Friday reported third-quarter revenue of 911.1 million euros ($982.17 million) beating a company-compiled consensus of 908 million euros.
Group revenue grew 5.1% from a year earlier.
The merchant segment, which is Nexi’s biggest source of revenue accounting for around 57% of total revenue, grew 6.6% to 534.4 million euros driven by an expanding customer base that fuelled higher transaction volumes from small and medium enterprises.
Nexi’s core profit in the third quarter rose 6.2% compared to the previous year to 522.9 million euors, in line with a company-provided consensus of 523 million euros.
Its core profit margin was 57%.
The company added that it completed in September a 500 million euro share buyback programme launched in May, which originally was expected to last 18 months, but was sped up in July.
It confirmed its guidance, which includes a mid-single digit growth in revenue and a mid-to-high-single digit growth in core profit compared to last year.
($1 = 0.9276 euros)
(Reporting by Alberto Chiumento in Gdansk; editing by Milla Nissi and Kim Coghill)
Revenue is the total income generated by a company from its business activities, typically from sales of goods or services, before any expenses are deducted.
Core profit refers to the earnings generated from a company's primary business operations, excluding any income from non-operational activities or one-time events.
A share buyback program is a corporate action in which a company repurchases its own shares from the marketplace, reducing the number of outstanding shares and often increasing the value of remaining shares.
Profit margin is a financial metric that shows the percentage of revenue that exceeds the costs of goods sold (COGS). It indicates how efficiently a company is managing its expenses.
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