MILAN (Reuters) -Italy’s Nexi on Thursday confirmed its 2023 guidance, sending its shares up 10% after dispelling concerns it could face similar problems as rival Worldline which lost 40% of its market value after it slashed its outlook.

At 1600 GMT shares in Nexi were up 9.8% at 6.6 euros each, off the 5 euro record low hit in the wake of Worldline’s alarm.

Shares in rival Adyen also soared on Thursday, up 37% after the Dutch payments firm provided a “more realistic” medium-term outlook.

Nexi has traded below its 9 euro listing price over the last year amid weakness in the payments industry which sources have said has prompted several investment funds, including CVC Capital Partners, to study potential buyout offers for the company.

But any deal would need the backing of the Italian government, which has special powers to protect Nexi and is a shareholder through state lender CDP.

Worldline last month shocked investors and sparked a sector sell-off when it said it was downsizing its German business and dropping online merchants which were too risky in the light of tighter rules and rising cybersecurity dangers.

Nexi CEO Paolo Bertoluzzo reassured analysts that Nexi’s business in Germany, where it has acquired e-commerce clients following its 2021 merger with Denmark’s Nets, was safe, adding that financial regulator Bafin’s audits had long been completed.

Nexi cleaned up its German business by ditching potentially risky e-clients after the Nets deal.

Europe’s biggest payments company by volumes met forecasts on Thursday for quarterly revenue and core profit, though slower summer activity this year compared with 2022 curbed growth at its core shopowners’ payments business.

Nexi said it had sold eID, a system to verify users’ online identity and data, which it had lined up for disposal during its latest capital markets day to streamline its operations.

Nexi’s earnings before interest, tax, depreciation and amortisation came in at 495.8 million euros ($531 million), fractionally ahead of analyst forecasts. Revenues totalled 872 million euros, in line with expectations.

(Reporting by Valentina Za, editing by Giulia Segreti and Gavin Jones)

Copyright 2023 Thomson Reuters.