July 23, 2018 / 6:26 AM / a year ago

UPDATE 1-France's Worldline to process payments for Commerzbank

(Adds details of H1 results and CFO call)

July 23 (Reuters) - Worldline, a French payment services company, said on Monday its subsidiary equensWorldline formed a strategic partnership with German bank Commerzbank AG for processing payments.

Under the partnership, valid for a period of 10 years, equensWorldline will process all SEPA (Single Euro Payments Area), instant, multi-currency, and domestic payments for Commerzbank.

The partnership is worth over 200 million euros ($234.60 million) for the company, Wordline’s Chief Financial Officer Eric Heurtaux said.

“We have already started to realise some revenue as early as this semester and this will probably ramp up to a stabilised situation towards end-2020, and at this point of time, it will represent around 1 percent of Worldline revenue,” Heurtaux said in a call with journalists.

Meanwhile, Worldline posted on Monday a half-yearly organic revenue growth of 5.8 percent to 818.6 million euros, buoyed by growth in its three business lines, the French company said.

The first-semester results were “perfectly in line with the objectives that were set for the year,” said Chief Executive Gilles Grapinet, thus confirming its full-year outlook.

Worldline, which will acquire the payment services division of Swiss exchange operator SIX Group, reported first-half net income group share of 57.2 million euros, up 12.6 percent from a year-ago period.

The French company beat competition from U.S. bidders to land the SIX business, reflecting a drive by financial sector companies to gain scale to benefit from the shift towards electronic and online payments.

$1 = 0.8525 euros Reporting by Piotr Lipinski and Alan Charlish in Gdynia, Editing by Sherry Jacob-Phillips

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