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Nexi Confirms Full-year Guidance Amid Europe Fintech Turmoil

(Bloomberg) — Italian payments specialist Nexi SpA confirmed its full-year guidance and reported higher revenue in the third quarter, as Europe’s fintech industry comes under pressure after a boom during the pandemic years.  

Milan-based Nexi reiterated its outlook of revenue increasing by more than 7% this year, saying it expects to generate at least €600 million ($643 million) in excess cash. Third-quarter revenue increased 5% from a year earlier, in line with analyst expectations. Net financial debt, 76% of which is at a fixed rate, fell to €5.35 billion from €5.42 billion in June.

Payments companies in Europe have come under the spotlight as investors worry about lofty valuations and a broader slowdown in consumer spending. Worldline SA sent a shockwave through the fintech sector last month, cutting its sales outlook and warning of economic challenges. 

Nexi also announced the sale of its digital identity solutions unit in the Nordic region, eID, to IN Groupe for as much as €127.5 million. The disposal is part of the firm’s rationalization and simplification of its portfolio announced last year.

Chief Executive Officer Paolo Bertoluzzo has aggressively built the company up through acquisitions, buying Nordic rival Nets A/S as well as domestic targets. The company is also at the center of speculation on possible interest from CVC Capital Partners and other funds to take it over. 

Source: BNN Bloomberg