LONDON (Alliance News) - eServGlobal Ltd Tuesday reiterated that it is trading in line with expectations for its current financial year, with progress made on its cost-cutting measures.
eServGlobal, whose core domestic mobile money business is complemented by the HomeSend international money transfer hub joint venture with MasterCard and BICS, had previously said it expects revenue and adjusted earnings before interest, tax, depreciation and amortisation for its current financial year to at least match the numbers achieved in the prior year.
It is aiming to strip out more than AUD2.9 million of costs on an annual basis from the next financial year, with savings benefits also expected in the second half of the current year.
Reporting results for the six months ended April 30, eServGlobal said it swung to a first-half pretax loss of AUD7.6 million, compared with a pretax profit of AUD33.8 million in the corresponding period of the prior financial year, with revenue down by 25% to AUD12.8 million and no repeat of the AUD33.9 million gain on the creation of the HomeSend joint venture.
"Our transition to a new technology and the simultaneous deployment of several new projects has impacted our revenue recognition in the first half. However, I am encouraged by the positive reaction of our customers and prospects to PayMobile 3.0 launches, and I believe this has played a part in the 39% increase in sales orders during the half," Executive Chairman John Conoley said in a statement.
PayMobile 3.0 is eServGlobal's flagship mobile money platform.
"We will continue to get a grip on the business in the second half, as PayMobile 3.0 gains traction we will be able to take advantage of more rapid deployment times resulting faster conversion of projects to cash and higher margin support revenue. In the coming half we must continue the focus on sales execution and project delivery, while finding additional momentum within our operations and in the sales strategy to underpin 2016," the CEO added.
Conoley added that the company is "satisfied" with HomeSend's progress.
eServGlobal shares last traded at 17.54 pence in London; they were untraded Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
