Business Update (1743B)
April 12 2012 - 2:00AM
UK Regulatory
TIDMESG
RNS Number : 1743B
eServGlobal Limited
11 April 2012
eServGlobal Limited (eServGlobal or the "Company")
Business Update
Paris: 12 April 2012
eServGlobal (LSE: ESG & ASX: ESV), a global telecoms
software vendor specialising in Mobile Money and Value-Added
Services provides the following update.
Completion of contract transfers to Oracle
As part of the Asset Purchase Agreement of the USP Business and
Assets by Oracle in August 2010, eServGlobal agreed to continue to
support clients whose contracts were not eligible to be directly
transferred to Oracle upon completion of the sale with the
understanding that both parties would endeavour to transition
contracts across as appropriate and feasible. Based on the mutually
beneficial outcome of the settlement reached between eServGlobal
and Oracle in November 2011 the two companies have successfully
accelerated this transition.
eServGlobal is pleased to report that all material contracts
have now been transferred on or before schedule with one remaining
contract ending in January 2013. Low margin pass-through revenues
will therefore reduce commensurately with this successful transfer.
This represents the completion of the Board's strategy to refocus
the business on the high growth area of Mobile Money and Mobile
International Remittance.
Core Business Outlook
Despite the political instability in some of the Company's core
geographies, particularly the Middle East, eServGlobal has
announced four significant new customers since 31 October 2011, the
end of its financial year, bringing the total customer count to 82.
The challenging environment in the region is expected to continue
which, given the scale and strategic nature of the projects for end
customers, is likely to affect the timing of new contracts and
recognition on contracts already won. However, the Company is
working to diversify exposure to this region in order to limit the
potential impact on the business.
Continued progress for HomeSend
eServGlobal also takes this opportunity to welcome a recently
released study by industry body CGAP (Consultative Group to Assist
the Poor) which found that international remittance is now a
significant form of money transfer into developing countries and
has experienced considerable growth over the past decade. In the
study, CGAP described the HomeSend service as a market leading
technology which aims to open the one direction corridors and grow
a network that connects all users across the world.
The study, CGAP Landscape Study on International Remittances
through Mobile Money, states that, "The hub model of HomeSend is
one of the most intriguing innovations in the mobile international
remittance market currently ... This open model would lend itself
to reaching more people, faster, and would likely lead to greater
financial inclusion."
HomeSend is strategic partnership between BICS and eServGobal
with a vision to become the world's leading mobile-to-mobile
international remittance platform. To date, HomeSend has signed
partnerships with mobile operators, including three multinational
groups, to the point where the potential user base is now over 325
million and growing.
About eServGlobal
eServGlobal specializes in Mobile Money solutions and
Value-Added Services (VAS), to help Mobile Service Providers
increase their revenue and gain and maintain customer ownership.
eServGlobal invests heavily in product development, using
carrier-grade, next-generation technology and aligning with the
requirements of more than 80 customers in over 55 countries.
For 28 years mobile and financial service providers have used
eServGlobal solutions to lead and innovate in their local markets,
leveraging their core assets and their trusted agent and subscriber
relationships.
With 13 offices globally, eServGlobal provides full "end-to-end"
and "any account to any account" Mobile Money Services and
International Remittance Services. Delivered in partnership with
BICS, the HomeSend solution is the only mobile-centric
international remittance hub to gain endorsement from the GSM
Association.
eServGlobal's Value-Added Services in promotions, loyalty and
messaging enable service providers to engage with their subscribers
in a personalized and dynamic manner.
To reduce time-to market and to meet the needs of operators and
banks, eServGlobal provides multiple licensing alternatives as well
as SaaS-based products and services.
eServGlobal is listed on the Australian Securities Exchange
(ESV) and the London Stock Exchange AIM (ESG). More information at:
www.eservglobal.com
For further information, please contact:
eServGlobal www.eservglobal.com
Christina Tubb, Investor Relations Manager T: +33 (0) 1 4612 7746
Cenkos Securities plc www.cenkos.com
Ivonne Cantu/Stephen Keys (Nomad) T: +44 (0) 20 7397 8980
Newgate Threadneedle www.newgatethreadneedle.com
Caroline Evans--Jones/Josh Royston/Hilary T: +44 (0) 20 7653 9850
Millar
This information is provided by RNS
The company news service from the London Stock Exchange
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