First Half Guidance
27 January 2009 - 6:00PM
UK Regulatory
TIDMESG
RNS Number : 2894M
eServGlobal Limited
27 January 2009
27 January, 2008
eServGlobal Limited
("eServGlobal" or "the Company")
First Half Guidance
eServGlobal Limited (LSE: ESG & ASX: ESV), a provider of end-to-end solutions,
enabling smart communication and payment services for service providers on any
generation network, today announces updated guidance for the half year ended 31
Dec, 2008.
The Company now expects to report half-year revenue of AUD$83million, compared
to AUD$91m in the corresponding period in 2007.EBITDA for the period was
impacted by costs associated with migrating infrastructure to lower cost
locations and is forecast to be above AUD$4.5m. However, this restructuring is
expected to bring subsequent cost savings. The cash balance at 31 Dec, 2008 was
AUD$10m and the Company continues to be debt free.
The outlook for the full year FY2009 is for revenue above AUD$180m. In the
current environment, there is risk associated with the timing of high value
contracts that may affect the final revenue and EBITDA result. The Company will
provide an updated forecast with the audited half year results on 23 February,
2009.
Mr. Ian Buddery, Executive Chairman of eServGlobal, said, "As foreshadowed in my
AGM address on 5 Nov, 2008, we have experienced weaker market conditions in the
first half of our financial year. We commenced our restructuring programme in
October, with all costs accrued, which will begin to bring cost savings in the
second half, taking full effect in the 2010 fiscal year.
"We now have a recovering sales pipeline and the opportunity to improve our
outlook; however, telecoms operators may choose to delay major projects, which
leads us to be cautious in our forecast for this year.
"We enjoyed several highlights in the period, including significant new customer
wins in North America and Latin America. We have maintained our investment in
R&D in 2008 and will be launching major new products at the upcoming Mobile
World Congress in Barcelona (16-19 Feb, 2009). Our Mobile Remittance product
carries strong potential, as it represents both a new revenue channel for
operators and a cost saving for subscribers, both of which are attractive
offerings in the current economic climate."
For further information:
+------------------------------------------+-----------------------------------------------+
| Ian Buddery | Numis Securities Limited |
| Executive Chairman | Brent Nabbs (NOMAD) / David Poutney (Broking) |
| eServGlobal Limited | Tel: +44 (0) 20 7260 1000 |
| | |
+------------------------------------------+-----------------------------------------------+
| ICIS (financial PR) | eServGlobal Limited |
| Christian Taylor-Wilkinson / Bob Huxford | Sally Bennett, Communications Manager |
| Tel: +44 (0) 20 7651 8688 | sally.bennett@eservglobal.com |
| | T: +33 1 46 12 77 46 |
+------------------------------------------+-----------------------------------------------+
About eServGlobal
eServGlobal (AIM: ESG & ASX: ESV) develops and implements solutions for mobile
payment, convergent charging and rating, network services and messaging
products, for telecom service providers, across all legacy and next generation
telecom networks.
eServGlobal provides comprehensive services ensuring the success of projects
with worldwide implementation, integration and support services. Its innovative
solutions help service providers to grow new revenues, reduce churn and lower
their costs.
Over 80 of the world's leading service providers, with over 400 million mobile
subscribers in more than 50 countries, are taking advantage of eServGlobal's
end-to-end solutions and expertise to quickly deliver revenue-generating
services. With 16 offices around the world and staff from 30 different
countries, it provides flexible solutions with ongoing product development,
based on a deep understanding of its customers' challenges.
eServGlobal is listed on the Australian Stock Exchange (ASX: ESV) and the London
Stock Exchange AIM market (LSE: ESG). In the year to 30 June 2008, eServGlobal
reported revenue of AU$177.9 million, representing organic growth of 15.9% over
FY07. Net profit after tax of AU$10.4 million was achieved, up 91.5% from the
previous year. A dividend of 3 cents per share was paid for the full year ended
30 June, 2008, an increase of 50% over the previous year's dividend payment.
More information can be found at: www.eservglobal.com.
Ian Buddery
Executive Chairman
eServGlobal Limited
This information is provided by RNS
The company news service from the London Stock Exchange
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