Research note


Paynova: Q4 2016 comments

Paynova reported a Q4-result with a revenue of SEK 8.3 million (expected SEK 8.5 million). EBIT was weaker than expected of SEK -4.4 million (estimates were SEK -2 million). Non- recurring cost were SEK 1.1 million. CEO Daniel Ekberger communicates that the company has several procurement processes with large clients.

Estimates vs Actuals:

Revenues from consumer credits were 25 percent higher than the last quarter. Revenues from consumer credits are now higher than revenues from processing (credit card payments and direct bank payments) and I therefore over 50 percent of total revenues. The profitability is much better in consumer credits which will be shown in the company’s long term EBIT-margin. 
Costs higher than expected: 
The quarter was burdened by nonrecurring costs of SEK -1.1 million for the organizational changes in the company when it changed strategy and initiative in the consumer credit business.
Going forward: 
Revenue growth in 2017 is expected to come from:
  • SJ: We believe that share of payments by invoice will increase further during the year.
  • New health care client: Roll out is expected in Q3-Q4 2017. 
We are expecting 1-2 large new clients this year, with a potential roll-out in 2018 or a little bit earlier.

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