Topic:

Yesterday, Rubean announced to have won the Global Payments tender for Germany, which we assume to be basically the tender for the recently announced joint venture between Commerzbank and Global Payments (“Commerz Globalpay”). In detail:

Earlier this year, Commerzbank announced to have entered a joint venture with Global Payments in order to offer digital payment services to its SME clients. With yesterday´s corporate news it seems clear that Rubean is delivering the PhonePOS solution for the joint venture and Global Payments App “GP tom”. Rubean´s unique PhonePOS solution would enable SME clients of Commerzbank to use its phones as payment terminals instead of using third party devices.

Attractive pricing scheme.

We expect that the contract with Global Payments has two major components: 1) fixed fee per terminal in use (phone using the Rubean´s payment solution) per month and 2) a fixed fee per executed transaction. Assuming that PhonePOS will be used by 100k SME clients of Commerzbank until end of FY25 (mind you that Commerzbank is servicing overall c. 600k SME clients), executing an average of 7 transactions per day each, we expect Rubean to generate additional € 1.0m sales in FY24 (eNuW) and € 2.9m additional sales in FY25 (eNuW).

With the third important strategic partnership announcement within a short period of time (i.e. Correos, emerchantpay), Rubean is showing once again very clearly that its leading softPOS product is ready and that the roll-out is in full swing. We hence expect positive newsflow from further new partnerships within FY24 that should further ramp-up sales and EBIT going forward.

As we have already anticipated meaningful cooperations within this year, we adjust our sales estimates only slightly, remaining rather conservative. Still, we expect exponentially growing quarterly figures that should result in slightly increased sales of € 3.0m and an EBIT of € -1.4m for FY24e. Mind you, that further customer wins as well as a dynamic development of existing partnerships could render our estimates as too low.

BUY

with a new PT of € 9.00, based on our DCF.