Nexi open to different partnership models with banks (updated)

BPM

11/05/2023 11:09

* 
      Nexi in the running in Banco BPM's partnership tender
    

        * 
      UniCredit aiming to wrap up payments review by end-Sept
    

  
 (Recasts with comments from analyst call)
    By Valentina Za
       MILAN, May 11 (Reuters) - Italian payments giant Nexi
 NEXII.MI  is open to different partnership models, it said on
Wednesday as leading banks UniCredit  CRDI.MI  and Banco BPM
 BAMI.MI  review options for their payments business.
    Nexi CEO Paolo Bertoluzzo made the comments as the group
confirmed 2023 guidance after reporting first-quarter profit in
line with forecasts, though revenue exceeded expectations.
    Banco BPM is working to select a partner by the end of June
for its retailers' and payment card business, which it has
valued at 2 billion euros ($2.2 billion) taking into account
future fees. 
    Sources have said that Nexi is in the running, though Nexi
traditionally acquires full ownership of banks' merchants
payment businesses, sometimes over years, as with its recent
deal with Spain's Sabadell  SABE.MC .
    "Different models can work and we are keen to be open to
what ultimately banks sees as their strategy," Bertoluzzo said,
adding that the valuation of the business and related up-front
payment would need to vary accordingly.
    UniCredit, meanwhile, is conducting a review of its payment
operations across its 13 markets. A source with knowledge of the
matter said the bank expects to complete the process by the end
of September.
    "Everywhere ... banks continuously revisit their payments
strategies," Bertoluzzo said, adding that the business is
becoming increasingly technology-centred requiring dedicated
partners.
    "Specialisation in digital payments is becoming the rule of
the game," he said.
    Nexi reported a 13.6% rise in first-quarter core profit as
transaction volumes grew by double-digit percentages across all
its markets, a trend that continued in April.
    Revenue rose 9% year-on-year to 741.7 million euros, above
an analyst consensus gathered by the company.      
    Earnings before interest, tax, depreciation and amortisation
(EBITDA) was 335.7 million euros, in line with forecasts, with
the core profit margin rising by 183 basis points.
($1 = 0.9084 euros)
    

 (Reporting by Valentina Za
Editing by David Goodman)
 ((valentina.za@thomsonreuters.com; +39 02 6612 9526;))