Research Note: BUY on Novatti Group (ASX: NOV)

Emerald Financial Outlook on Novatti Group (ASX: NOV) – BUY

Despite being a fintech company that was adversely affected by the COVID-19 pandemic where international travel restrictions stalled a sizable portion of international payment processing revenue, Novatti has weathered the pandemic by expanding other areas of the business which have enabled the Company to emerge in a stronger position than it was pre-pandemic.

Emerald Financial maintains its Buy rating on Novatti which re-allocated resources between its various business divisions to set a foundation for substantial revenue growth in FY21 and beyond through core tech partnerships.

Key Highlights:

• Record Half-Year Revenue – $7.35m reported for H1 FY21;
• Seven consecutive quarters of record processing revenue;
• RADI Banking License resumed review in March 2021;
• Revenue drivers in motion with licences secured and Tier 1 partners signed in sector with high entry barriers;
• Novatti payments fully integrated into Apple Pay, Samsung Pay and Google Pay;
• Digital Payments Accelerator driving Visa card issuing platform;
• International expansion of Emersion to the United States on track;
• RentPay ‘next generation’ payments platform to launch in FY21;
• $40m post-money valuation of Novatti IBA underquoted in current NOV market cap;
• Novatti ecosystem emerging alongside launch of Lifepay app;
• Regulatory licence secured in New Zealand for card issuing expansion;
• Cryptocurrency Payment Gateway patent application lodged.

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*Owners of this website are NOV shareholders

**NOV has engaged Principal IR on retainer to assist with Investor Communications

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Alfred Chan

Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.

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