AlphaValue Corporate Services
Cette analyse a été commandée et financée par l’entreprise concernée et constitue donc un avantage non-monétaire mineur tel que défini par MIFID2


Bloomberg   KEYW BB
Cartes à puce -sécurité  /  Belgique  Web Site   |   Investors Relation
The soft bet is paying off
Potentiel 109 %
Cours (€) 1,03
Capi (M€) 24,3
Perf. 1S: 0,98 %
Perf. 1M: -0,96 %
Perf. 3M: -4,63 %
Perf Ytd: -5,50 %
Perf. relative/stoxx600 10j: 0,04 %
Perf. relative/stoxx600 20j: -7,43 %
Publication Res./CA09/11/2018

Still in transition, the group showed revenue growth but lower profitability


Keyware’s revenue was up by +2.6% yoy in the first nine months of FY18 to €14,126k. By division, the Terminal division’s revenue decreased by 16% yoy to €5,525k, the Authorisations division increased by +6.15% yoy to €6,651k and the growing Software division was up by +182.6% yoy to €1,950k. This significant growth principally results from the Magellan contribution for the first three quarters of FY18, compared to only one quarter in FY17.
The gross margin, for the first nine months of FY18, represented +4.3%, well short of the first nine months of FY17 (+15.1%). This drop is explained by a lower margin in the Terminals division, the integration of Magellan and EasyOrder’s start-up phase, which together have led to a 70.8% decrease in profit before tax (€606k vs. €2,079k in 9m FY17). Operating profit was €1,316k, lower than in 9m FY17 and the financial result was €157k, again lower.


The soft bet is paying off

The group, which recently decided to become a software provider, has started to show significant revenue in this division. Sales have quickly grown in the first nine months of the year (+182.6% yoy), mainly thanks to a full Magellan contribution. The financial services, provided by Magellan, continue their expansion. The company has signed, for the first time, in Q3 18 contracts for purchase instalments in Belgium. EasyOrder, which offers traders the opportunity to offer their customers a webshop and a personalised app, continues to develop strongly. The company sees a significant opportunity in Belgium and expects a 20% of penetration in five years’ time.

Card payment replaces cash payment, to the benefit of the Authorisations division

While the Terminals division’s results are diminishing, those of the Authorisations division continue to grow. The explanation is that terminals’ sales are approaching saturation phase and demand is now decreasing (-26% yoy in Q3 revenue). Even so, the number of card payments is steadily increasing, which has benefited and will continue to benefit the Authorisations division.


The group continues its transition phase, which leads to increasing revenue, but operating profitability is currently weak due to significant cost increases. Following the 9m FY18 results, we will slightly downgrade our forecasts as we have been too optimistic on the company’s capacity to face the transition costs. However, we remain confident in the strategy to become a pure software provider, which should push the results in the coming years.

Mises à Jour

13 nov. 19 Publication Res./CA
The challenge remains intact

30 août 19 Publication Res./CA
Software continues to drive up the top-line

15 mars 19 Publication Res./CA
Still in transition

09 mars 18 Publication Res./CA
FY17 - a transition year