Redeye report, Westpay: Delays, but the potential remains the same

Redeye report, Westpay: Delays, but the potential remains the same
4 October, 2018 Alexander Nilsson
In News

“Just like we expected we saw a small sales drop during Q2’18. Announcements regarding larger orders have been scarce the last months; a major product revamps that Westpay has been working on is the likely explanation for the hesitant customer behavior. The revenue ramp-up from international markets is also delayed, we now model increasing volumes during H1’19. We expect to see a temporary decrease in card terminal volumes during the coming quarter; this will affect the profitability and sales level negatively. The trajectory is never linear for a small growth company like Westpay, and there will be hick-ups along the road. We have adjusted our projections downwards which also leads to a lower Base-case. However, our Valuation range remains almost intact as we believe the long-term potential has not been altered despite the delays and quarterly fluctuations”

Westpay: Delays, but the potential remains the same.pdf