£87.2m market cap
7.2p last close
eServGlobal develops mobile software solutions to support mobile financial services, with a focus on emerging markets. It also has a 35.7% share in the HomeSend cross-border payments hub, alongside Mastercard and BICS.
Investment summary
eServGlobal has announced that due to order slippage in the core business, it does not expect to reach operational break-even in FY18, with revenues expected of €7-7.5m versus a break-even cost base of €11-11.5m. We have reduced our forecasts to reflect the revised revenue outlook and increased EBITDA loss. We estimate that eServGlobal’s cash balance is more than enough to cover core business working capital requirements as well as expected investment in HomeSend capital raises.
Y/E Dec |
Revenue (A$m) |
EBITDA (A$m) |
PBT (A$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2016A | 21.6 | (7.0) | (17.5) | (3.88) | N/A | N/A |
| 2017A | 12.2 | (15.2) | (27.5) | (4.17) | N/A | N/A |
| 2018E | 11.3 | (6.2) | (14.0) | (1.57) | N/A | N/A |
| 2019E | N/A | N/A | N/A | N/A | N/A | N/A |
| Last updated on 21/02/2019 | ||||||
Industry outlook
eServGlobal’s core business is focused on developing markets, where there is a higher prevalence of pre-paid contracts and unbanked citizens. Growth drivers include the shift to using the mobile phone for financial services and the increasing popularity of mobile peer-to-peer payments. Use of the HomeSend platform means that banks can bypass their correspondent banking relationships, reducing the cost and increasing the efficiency of cross-border payments.
Last updated on 21/02/2019
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Share price graph
Balance sheet |
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|---|---|
| Forecast net cash (A$m) | 29 |
| Forecast gearing ratio (%) | N/A |
Price performance
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Key management |
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| Andrew Hayward | CFO |
| John Conoley | Executive Chairman and Member of Audit Commit |
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