By Mauro Orru 
 

Worldline shares climbed in Friday afternoon trading after Bloomberg reported that Credit Agricole is weighing building a stake in the French payments company, taking advantage of Worldline's share price that lost more than half of its value this year.

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

The French bank has discussed a potential stake acquisition after Worldline's share price plunged in recent weeks, Bloomberg reported citing people familiar with the matter. Credit Agricole and Worldline declined to comment.

The report comes just over a month after Worldline shares lost more than half of their value following third-quarter revenue below analysts' expectations and a cut to guidance for the year due to what the group called challenging macroeconomic conditions. Worldline shares are down almost 60% since the year began.

Consumers have diverted more of their spending to so-called nondiscretionary expenses that are deemed essential such as housing and food, rather than discretionary expenses like entertainment or luxury goods, a development that harmed its profitability, Worldline said.

European consumers are grappling with inflation and high interest rates that are testing their spending habits, forcing many to prioritize essentials such as food over the occasional indulgence.

 

Write to Mauro Orru at mauro.orru@wsj.com

 

(END) Dow Jones Newswires

December 01, 2023 09:31 ET (14:31 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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