£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$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
---|---|---|---|---|---|---|
2016A | 21.6 | (7.0) | (17.5) | (3.88) | N/A | N/A |
2017A | 12.2 | (15.2) | (27.5) | (4.17) | N/A | N/A |
2018E | 11.3 | (6.2) | (14.0) | (1.57) | N/A | N/A |
2019E | N/A | N/A | N/A | N/A | N/A | N/A |
Last updated on 21/02/2019 |
Industry outlook
eServGlobal’s core business is focused on developing markets, where there is a higher prevalence of pre-paid contracts and unbanked citizens. Growth drivers include the shift to using the mobile phone for financial services and the increasing popularity of mobile peer-to-peer payments. Use of the HomeSend platform means that banks can bypass their correspondent banking relationships, reducing the cost and increasing the efficiency of cross-border payments.
Last updated on 21/02/2019
Sector |
---|
TMT |
Share price graph
Balance sheet |
|
---|---|
Forecast net cash (A$m) | 29 |
Forecast gearing ratio (%) | N/A |
Price performance
% |
1m |
3m |
12m |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|||||||||||||||
*% relative to local index |
Key management |
|
---|---|
Andrew Hayward | CFO |
John Conoley | Executive Chairman and Member of Audit Commit |
You may also be interested in…
- 1Spatial
- 4imprint Group
- 7digital Group
- appScatter
- Blancco Technology Group
- Boku
- Brady
- Carclo
- Claranova
- discoverIE Group
- Ebiquity
- EMIS
- Entertainment One
- Euromoney Institutional Investor
- Future
- GB Group
- GVC Holdings
- IQE
- Kape Technologies
- Keywords Studios
- Mercia Technologies
- Nanoco Group
- OnTheMarket
- Osirium Technologies
- SCISYS Group
- StatPro Group
- The Mission Marketing Group
- WANdisco
- XP Power
- YouGov