Entwickelt sich offensichtlich alles recht gut. Auch BSS/OSS ist wohl inzwischen so aussichtsreich, dass sie sich tatsächlich gegen einen Verkauf entschieden haben.
Cyan
Buy | TP: EUR5.30 | upside: 78%
Germany | IT services & software | MCap: EUR44.2m
Announces another contract in the BSS/OSS segment (LIWA, Colombia)
Key points:
§ Cyan announced this afternoon (4 April) that it has been chosen by LIWA, a Colombian multi-service company and part of Mauricio Hoyos' T-Valley group, to supply its BSS/OSS platform.
§ This is positive news for Cyan, as it demonstrates the pertinence of its BSS/OSS platform offering. Note that the group will ultimately keep this business and restructure it rather than selling it. The momentum has clearly improved in this activity in the last few months (without any new additional salesforce), and the company is confident in its capacity to monetise this and earn more than by putting it up for sale (EUR10-15m could have been expected).
§ The commercial dynamic has been strong over the past few months, both in Cybersecurity and BSS/OSS activities. In our view, this confirms three things: 1) underlying demand is there; 2) Cyan's solutions are pertinent; and 3) the group is on the right track to recovery.
Cyan's MVNO platform (BSS/OSS) chosen by LIWA, a leading Colombian multi-service company
§ Cyan just announced that it has been chosen by LIWA, a Colombian multi-service company and part of Mauricio Hoyos' T-Valley group, to supply its BSS/OSS platform.
§ Essentially, the group will enable LIWA to operate through a cloud-based service hub, allowing for flexible commercial models.
§ LIWA is a multi-service telecommunication, renewable energy, and IoT company. It provides businesses with virtual telephony and mobile marketing solutions, and also provides homes and people with clean energy services and fibre optic internet. Note that today LIWA just added mobile telephony to its product portfolio and launched its mobile offering.
Cyan's BSS/OSS business wrap-up
§ Since the acquisition of I-New in 2018, Cyan has acted as an MVNE through its BSS/OSS business. Through this segment, the company offers services such as connection to the network operator, billing, provisioning, and other similar services relating to the operational aspects of running an MVNO. Cyan notably helps new small MVNOs to get off the ground by offering them its expertise and experience in the implementation and management of telecom services, while also having large MVNOs as clients (Virgin Mobile, and Skitto, for example). In essence, the group acts as a true one-stop shop for MVNOs.
§ Regarding the current strong momentum in this division (LOV Telecomunicaciones, educom, LIWA), Cyan has decided to keep it and restructure it rather than selling it. While management had previously said that it would rather sell this business, we believe this decision makes sense if it can monetise it. Management will have to prove that it will generate more cash flow by retaining this activity than by selling it (EUR10-15m could have been expected). We believe this is plausible.
Investment case summary: Buy, EUR5.3 TP
§ After last year's announcements (2021 sales and profit warnings, restructuring plan, capital increases), we think the worst is behind us. The revised 2021 sales guidance will be reached and approximate EBITDA breakeven can be expected in 2022. Bear in mind that the group is more inclined to focus on growth rather than profitability for the time being.
§ All in all, Cyan has now turned into a recovery story. Management has already successfully implemented some of its reorganisation measures and should continue to do so with the restructuring of its BSS/OSS segment.
§ In this context, 2022E should mark a new start for the company, as management delivers on its roadmap. While we recognise that the group has no more room for error, we still find the risk/return profile attractive at the current levels. |
Thread abonnieren
