By Valentina Za
MILAN (Reuters) - Italian payments giant Nexi (BIT:NEXII) vowed to fight to retain customers after banking partner Banco BPM (LON:0RLA) chose to switch to a rival provider for retailer and card payments.
Nexi reported second quarter results which, as expected, showed slower annual growth than in the first three months. It confirmed its 2023 guidance, sending shares down sharply as some investors had positioned themselves for an upgrade.
Nexi CEO Paolo Bertoluzzo said Banco's payment deal with Italian private equity group FSI would have zero impact on Nexi's earnings in 2023 and still be very marginal in 2024.
Banco BPM last month agreed to sell 71.6% of its payments operations to FSI for cash and shares, ending its relation with Nexi and contributing its business to FSI's BCC Pay payments venture.
The switchover however will take several years, giving Nexi, which has advantages of scale, a window to fight to retain customers.
"The impact for us [after 2024] ... will depend on the ability of the new player to migrate customers ... and our ability to defend customers that for years have used Nexi products and propositions which are quite advanced by Italian standards," the CEO said.
Banco and FSI are planning to sign up small Italian lenders, offering their services to their shopowner and cardholder clients in a challenge to sector leaders Nexi and France's Worldline.
Italy is behind in digital payments but the sector is expanding fast, helped by investments in digitalisation.
"You must have ability to invest at scale and that is what we have and we will continue to do everything we can to continue to grow in Italy despite the latest competitor appearing," Bertoluzzo said.
Italy accounted for 58% of group revenue as of June 30.Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at 436 million euros in the three months through June, fractionally ahead of a 429 million euro company-provided average analyst consensus forecast.
Revenues totalled 835 million, up 7.3% from a year earlier and broadly matching expectations.