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 releases30/03/2021

Change of Authorisations' partner for further profitability

The results for the year 2020 were mainly marked by both a change of acquiring partner and COVID-19-related issues, although the latter may be beneficial in the mid/long run with growing electronic and contactless payments.


FY20 key financials
  • Group sales down by 28.5% to €12,961k
  • EBITDA decreased by 6.2% to €2,812k, FY20 EBITDA margin of 21.7% (vs. 16.5% in FY19)
  • Profit before tax amounted €173k (vs. €860k in FY19)
  • Group net profit was down by 79.4% to €66k due to lower operating results
  • Cash and cash equivalents amounted to €1,549k (+30% yoy)
  • Net financial debt decreased by 67.8% from €4,082k to €1,312k


Authorisations in troubles for the time being

By division, Authorisations was the main black spot (-72.1% revenue to €3,015k), with the lockdown having reduced the number of payment transactions, but also as Keyware decided to switch to a different Authorisations’ partner. For accounting purposes, the group was forced to present 2020 commissions differently than last year as the conclusion of the settlement agreement led to Authorisations’ income from the previous partner to still be received for nine months, but not presented as gross income. Presented in the same way as in 2019, Authorisations’ revenue would be down by 45.5% to €3,789k.

Keyware expects the total migration from its previous partner to the new one to take up to the middle of 2021 (depending on new lockdown restrictions), while it is already creating greater value translating into higher margin.

Terminal segment’s revenue was down by 5.3% to €6,638k due to commercial inactivity during the two lockdowns as well as commercial discounts/introduction of a cheaper range of terminals, which both, however, led to new customers and contract extensions with the existing ones.

Software division on the right track

The pandemic crisis has nevertheless had the merit of increasing demand for payment apps. Combined with the conclusion of major contracts (Magellan), the division reported revenue up by +37.1% to €4,293k. Such a performance shows, once again, that the group has done well to move to become a fintech provider.

Well-managed financial debt

Keyware’s solvency has been maintained during the crisis. Financial debt and loans decreased by €2,770k and now amount to €1,312k. The group expects this amount to be mainly cleared by June 2021.


We will integrate the FY20 results and revise our forecasts for the next three years. The Software division will inflate our top-line expectations, although being offset by the migration to another Authorisations’ partner which should continue to have an impact at least in H1 FY21.

Upside 88.8%
Price (€) 1.14
Market Cap (€M) 26.8
Perf. 1W: 9.62%
Perf. 1M: -0.87%
Perf. 3M: 14.0%
Perf Ytd: 37.3%
10 day relative perf. to stoxx600: 2.94%
20 day relative perf. to stoxx600: 3.30%

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

15 Mar 19 Earnings/sales releases
Still in transition