Global e-commerce boom boosts Worldpay ahead of merger as UK consumer spending lags

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Worldpay provides payments services to firms (Source: Getty)

Strong growth in global online shopping made up for weaker UK growth for payments firm Worldpay in third-quarter ahead of its merger with US firm Vantiv.

The FTSE 100 firm, formerly owned by Royal Bank of Scotland before being spun out after the financial crisis, today reported increased revenues by seven per cent in the third quarter to reach £1.27bn.

Revenues are expected to grow at the bottom end of its guidance, which Worldpay had previously outlined as within the range of nine to 11 per cent annual growth over the medium term.

Read more: How Worldpay, Vantiv and four big banks pushed through £9.3bn deal

Profit for the period rose by 3.4 per cent year-on-year, while in the financial year to September profits rose as tax charges fell.

Slower consumer spending in the UK held back revenue growth in its home market, but global e-commerce sales showed “strong performance”, the firm said.

Global e-commerce revenues rose by 17 per cent year-on-year, but revenues only grew by two per cent in the UK as consumer spending weakness persisted into the third quarter.

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The firm said: “Management believes this slowdown in consumer spending is, in part, driven by a shift of spending towards grocery”, damaging smaller businesses disproportionately when compared to larger firms with broader retail exposure.

The figures represent a slight slowdown after revenues rose by 18 per cent in the first half.

Credit card processor Vantiv first approached Worldpay in July in an £8bn deal. The merger will complete in mid-January 2018 after shareholder meetings at the start of the year.

Vantiv and Worldpay have made “good progress on all aspects of the transaction and integration planning has commenced”, Worldpay said.

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