AlphaValue Corporate Services
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Bloomberg   KEYW BB
Smart Cards-Security  /  Belgium  Web Site   |   Investors Relation
The soft bet is paying off
Upside 118%
Price (€) 0.99
Market Cap (€M) 23.3
Perf. 1W: -3.88%
Perf. 1M: -4.81%
Perf. 3M: -5.71%
Perf Ytd: -4.81%
10 day relative perf. to stoxx600: -2.94%
20 day relative perf. to stoxx600: -5.52%
Earnings/sales releases18/05/2022

All lights are green after Authorisation’s partner change

Strong execution during FY21 led to higher-than-expected results. The successful transition to the new partner definitely drove the growth, while low comps also helped. The sky is getting brighter looking forward.


FY21 key financials
  • Sales up by +36.5% to €17,689k
  • EBIT up by +129.8% to €119k
  • EBITDA up by +40.6% to €3,955k
  • Profit up by +889.4% to €653k


All divisions contributed to growth

Keyware published FY21 results that came in higher than our expectations with substantial growth in all three segments due to low comps linked to the pandemic and the completion of the transition to the new transaction partner.

The payment terminal’s revenue was up by +6.5% to €7,072k with higher signed contracts during the year thanks to significant commercial actions and promotions. The software segment was up by +14.1% to €604k. The division continues to contribute more and more to the group’s results (27% of total revenue) and the additional investments to implement the commercial SAAS contracts (launched in 2019, maintained in 2022) will increase it further. Lastly, what actually boosted the top-line performance strongly was the authorisations segment, up by +158.4% to €5,995k thanks to the successful/completed migration to the new partner during the year which has also translated into improved profitability and higher margins.

Improved profitability

Despite higher personnel costs (up by +12.8%), due to low comps as 2020 was under periods of temporary unemployment, higher operating charges and provisions, Keyware was able to deliver an EBITDA margin improvement (22.4% vs. 21.7% in FY20). This is explained by the higher gross margin due to higher authorisation revenues (new transaction partner) and subscription, as well as a higher contribution from software whose number of merchants offering SPLIT (electronic transactions with deferred payments to consumer) has continued to rise and boosted profitability.

Payment solution acquisition

In January 2022, Keyware announced the acquisition of Payment Solutions BV, a player in the electronic payment solutions market with clients mainly located in Flanders and Brussels. The transaction implies c. 15% growth in Keyware’s customer base, while synergies are expected in the terminals and authorisations segments throughout 2022. The contribution to this acquisition to FY22 revenue and EBITDA is expected to be €2,300k and €440k, respectively.


We will integrate the higher-than-expected FY21 figures and should positively revise our expectations looking forward given the strong execution in FY21 which gives us a positive sentiment. The Payment Solutions integration is also expected to drive FY22 forecasts up.


03 Oct 22 Earnings/sales releases
A smooth start to the year

18 May 22 Target Change
Integration of the FY21 figures

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...