eServGlobal (ESG)

Business description

eServGlobal develops mobile software solutions to support mobile financial services, with a focus on emerging markets. The company also has a share in the HomeSend international remittances hub, alongside Mastercard and BICS.

Stock data

Market cap.£102m
Last close11.25p
High / Low (52 weeks)12.4p / 4.9p
Stock market listingLN, AU
Forecast net cash (A$m)22.7
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual4.763.790.5
Relative *3.561.075.2

* % Relative to local index

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Company news

Y/E Oct Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2015A 25.9 (10.4) (17.7) (5.41) N/A N/A
2016A 21.6 (7.0) (17.5) (3.88) N/A N/A
2017E 15.2 (7.6) (17.8) (2.15) N/A N/A
2018E N/A N/A N/A N/A N/A N/A

Last updated on 08/12/2017

Investment summary

eServGlobal has been on a long journey to restructure its core business; we believe it is now nearing the end of this process. Its HomeSend joint venture (JV) has expanded its addressable market to serve the cross-border banking payments market, with JV partner Mastercard signing up 10 banks to use the service so far. This has the potential to add material revenues and grow the value of the JV. We have revised our forecasts to reflect revenue and cost guidance as well as the recent fund-raising. FY17 forecasts below are for the 14 months ending 31 December 2017.

Last updated on 13/12/2017

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. The international remittances market was worth $575bn in 2016 and is forecast to grow to $616bn by 2018 (source: World Bank). The HomeSend JV has the potential to reduce the cost of sending money cross-border.

Last updated on 13/12/2017

Key management

Andrew Hayward, CFO
John Conoley, Executive Chairman and Member of Audit Commit

Company address

Suite 5
30 Florence Street
Newstead
Brisbane
4006
Australia
+33 1 4612 58 85
View website