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 114 %
Cours (€) 1,02
Capi (M€) 24,0
Perf. 1S: 3,03 %
Perf. 1M: 2,00 %
Perf. 3M: -1,92 %
Perf Ytd: -1,92 %
Perf. relative/stoxx600 10j: 0,09 %
Perf. relative/stoxx600 20j: -4,65 %
Publication Res./CA16/10/2018

Strong revenue growth, but profitability still impacted by the transition phase

Currently in a transition year, the group has reported growing H1 revenue but profit, although positive, was lower than in H1 17. Keyware’s revenue was pushed by the Authorisations division, which is still performing well, and the Software division, which has started to show its potential.


Keyware reported +8.1% yoy revenue growth to €9,742k (+€732k yoy). The Terminal division’s revenue decreased by 12% yoy, from €4,588k in H1 17 to €4,039k in H1 18. This was offset by the main revenue contributor, the Authorisations division, which reported €4,381k revenue (+6% yoy). The Software division showed the most impressive revenue growth (+1,512% yoy) to €1,322k, which is explained by the integration of Magellan that was not yet consolidated in H1 17.
The gross margin significantly reduced compared to the previous year (-11bp yoy), with a 58% decrease in profit before taxes (€660k). This was explained by the lower financial results (€-69k) and more by the lower operating profit (-74.4% yoy) to €294k. The integration of Magellan in the H1 18 figures has pushed down the results, due to additional staff costs and services and higher depreciation and amortisation costs.


A decreasing Terminal division offset by a growing Authorisations activity

The Terminal division has followed the 2017 decreasing trend and will continue further. The competition remains strong and e-commerce developments directly impact the number of terminal sales. This rising penetration of internet and mobile payments has lowered the number of POS terminals in circulation.
While the number of terminals is going down, the number of transactions on these terminals continues growing. This explains the revenue growth in the Authorisations division. The significant number of non-cash transactions and the democratisation of contactless payments largely contribute to this trend.

Strong development of the Software division

The transition phase from a hardware supplier to a software developer is going well, with the progressive integration of Magellan (H2 17) and EasyOrder (H1 18). Although the results have been affected by higher costs linked to these two recent acquisitions, we expect that this will be largely compensated by the software sales growth in the following years. This division currently represents a niche market with significant growth potential that will be a lever to boost profitability.


We have slightly increased our expectations for FY 18 and the following years, as the consolidation of Magellan and EasyOrder will inflate our top-line expectations. We believe that, despite start-up costs negatively impacting the group in the short term, the transition phase will not take long and Keyware should be able to improve its profitability.

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