Sydney, Jan 27, 2009 AEST (ABN Newswire) - eServGlobal Limited (LON: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."
Contact
Sally Bennett
Communication Manager
sally.bennett@eservglobal.com
T: +33 1 46 12 77 46
F: +33 1 46 12 77 49
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