AlphaValue Corporate Services Fundamental Analysis FR
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AlphaValue Corporate Services
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Bloomberg   KEYW BB
Smart Cards-Security  /  Belgium  Web Site   |   Investors Relation
The soft bet is paying off
Earnings/sales releases26/05/2020

The right time to establish itself as a software provider

Not immune to the COVID-19 crisis, Keyware nevertheless boosted the revenues of its software division, within which the EasyOrder application was a success during the lockdown period. The payment terminals and authorisations segments should face further headwinds during the year (and especially in Q2), which finally confirms that the company’s transformation into a software developer has come at the right time.


Q1 FY20 key financials
  • Revenue down by 10.7% to €4,185k
  • EBITDA down by 20% to €804k with an EBITDA margin of 19.2%
  • Net profit down by 44% to €206k


The lockdown as an opportunity for EasyOrder

The Q1 FY20 revenue decline (-10.7% to €504k) was mainly driven by the payment terminals segment (-17.2% to €1,654k), which saw a fewer number of newly-signed contracts as an obvious consequence of the lockdown measures from mid-March. SWAPS and renewals were, however, in line with those of Q1 FY19. Consequently, the authorisations segment reported a 9.6% revenue decline to €1,754k due to lower commissions.

However, the group has managed to take advantage of the sanitary crisis through its software segment (+1.8% to €835k) which was pushed up by the EasyOrder payment application. Digitalisation of orders and payments has been reinforced during the lockdown and is expected to continue to develop as a direct consequence of changing consumer habits.

All in all, Keyware continues its transformation from purely a terminal provider to a fully-fledged software developer, to the benefit of the top-line results. The share of the software segment has grown to 20% (from 17.5% yoy), while the payment terminals segment now represents 39.5% (vs. 42.6% yoy) and the authorisations segment 41.9% of the group’s total activity.

COVID-19 impact

Keyware has estimated a €275k loss in revenue as a result of the COVID-19 pandemic, mainly due to payment terminals. Cost savings in purchases (from terminals) have been estimated at €45k, while personnel costs were down by €69k.

Finally, the impacts from the pandemic to the Q1 FY20 EBITDA and Q1 FY20 net profit are €-161k and €-136k, respectively.
We expect that Q2 FY20 should be relatively worse, as Q1 was only impacted from mid-March. Enterprises and merchants resumed their activities in the week of 4 May 2020 and 11 May 2020, respectively.


We will integrate the Q1 figures and revise our estimates to integrate the COVID-19 impact. The payment terminals and authorisations divisions are expected to experience significant headwinds during the year, while we believe that this crisis will strengthen the software division and boost the segment’s revenue.

Upside 89.9%
Price (€) 1.12
Market Cap (€M) 26.4
Perf. 1W: -0.88%
Perf. 1M: 3.70%
Perf. 3M: 5.66%
Perf Ytd: 2.75%
10 day relative perf. to stoxx600: -0.18%
20 day relative perf. to stoxx600: 6.35%

13 Jan 22 M&A /Corp. Action
Strategic acquisition of Payment Solutions

16 Sep 21 Earnings/sales releases
Back in positive territory thanks to recovery in a...

30 Mar 21 Earnings/sales releases
Change of Authorisations' partner for further pro...

16 Sep 20 Earnings/sales releases
A pivotal year for the Authorisations division

26 May 20 Earnings/sales releases
The right time to establish itself as a software pr...

18 Mar 20 Earnings/sales releases
Positioned to take advantage of increasing pow...

13 Nov 19 Earnings/sales releases
The challenge remains intact

30 Aug 19 Earnings/sales releases
Software continues to drive up the top-line