April 26 (Reuters) – Worldline’s (WLN.PA) first-quarter revenue beat estimates from a company-compiled consensus on Wednesday, with its merchant services business contributing the most to the French payment services company’s growth.

The group, which processes digital payments for clients from merchants to government agencies, reported revenue of 1.07 million euros ($1.17 million) for the first three months of 2023, up 9.2% organically.

On average, analysts polled by the company had forecast revenue of 1.06 billion euros.

Earlier in April, Worldline announced it had entered exclusive talks with French bank Credit Agricole (CAGR.PA) to create a joint venture to provide payment service to businesses and their customers.

“Credit Agricole’s unique distribution network and acquiring market leaderships is a perfect fit with Worldline’s state-of-the-art products, technology and services, at scale,” CEO Gilles Grapinet said in a note, adding the combination with the French bank will be a key differentiating factor for customers.

The joint venture will start to generate revenue and operating margin before depreciation and amortization (OMDA)in early 2025, while total transaction costs and 2023-2024 phasing of cash investments required for its set-up are still under discussions, the French payments company said in a statement.

The goal is to create a “major player in the attractive French payment market,” the company stated.

Worldline confirmed its outlook for 2023 and for 2024.

($1 = 0.9109 euros)

Reporting by Alberto Chiumento, Laura Lenkiewicz in Gdansk; Editing by Edmund Klamann

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