eServGlobal, the AIM listed provider of end-to-end financial services for emerging markets reported revenue up 10% to A$31m, with Gross Profit up by 22% as gross margins rocketed from 43% to 62%. Costs now appear under better control after the end of restructuring; cost of sales, sales and marketing and admin costs all falling during the year. EBITDA showed a strong advance to a loss of A$0.7m, from a loss of A$5.3m, excluding forex gains.
The company now has over 100 mobile operators and payment service providers for its mobile money, international remittance and recharge technologies, including its HomeSend proposition. This allows subscribers to transfer money cheaply and easily between connected countries using mobile wallets deployed on their mobile phones, with good geographical coverage throughout the Middle East, Asia and Africa, see “eServGlobal confirms Mid-East deal”.
eServGlobal has made another big step forward to move its Homesend business into a joint venture with long term partner Mastercard, to access a greater share of the US$540bn of international remittances forecast for 2016 by the World Bank. eServGlobal will have a 35% share of this joint venture and receive A$9m in cash. Mastercard’s global reach will significantly increase the numbers of people able to send money through eServGlobal’s network of payment “corridors”.
eServgGlobal will benefit from the scale that the Mastercard jv will bring, as well as from having a premium reference customer linking the banked and the unbanked world. The company will continue to build out its business with other mobile and payment customers and strong revenue and profits growth can be anticipated. eServGlobal looks on track to be a real winner in this growing area of the global payments business.