Credit Agricole Considers Stake in Worldline amidst Share Price Drop

Shares of Worldline saw an uptick in Friday afternoon trading following reports that Credit Agricole is contemplating acquiring a stake in the French payments company. This move comes as Worldline's share price has decreased by over 50% this year.

At 1400 GMT, Worldline shares were trading 5% higher at EUR14.94.

According to Bloomberg, Credit Agricole has engaged in discussions regarding a potential stake acquisition after the recent decline in Worldline's share price. Both Credit Agricole and Worldline declined to provide any comments on the matter.

This report comes just a month after Worldline's shares lost more than half their value due to third-quarter revenue falling short of analysts' expectations. In addition to this, the company had to revise its guidance for the year as it faced challenging macroeconomic conditions. Consequently, Worldline shares have plummeted by almost 60% since the beginning of the year.

Worldline attributes its decline in profitability to consumers diverting their spending towards essential expenses such as housing and food, rather than discretionary items like entertainment and luxury goods. The prioritization of essentials over indulgences has been prompted by European consumers grappling with inflation and high interest rates, which have affected their spending habits.