From the CEO

From the CEO - Q2 2020

Once more, I am writing my comments in the shadow of Covid-19. During the second quarter the pandemic situation was spread on all markets where Westpay is conducting business. Our operations have of course been impacted by this global situation. We have tackled the conditions despite the serious challenges we have faced. Thanks to our initial quick response followed by continued pragmatic actions, we have made financial improvements which will be of essence, looking ahead post Corona.

Protecting our financial endurance continues to be our #1 objective. To boost our endurance, we remain with short-time work allowance, cost saving measures, as well as postponing specific investments not being critical to the current operations. Again, due to the lack of predictions when this is over, we need to play safely and wisely. We continue to assume that Corona will have a significant negative impact for at least the remainder of 2020. With this mindset, we secure the business now, and tomorrow.

The pandemic situation makes it impossible to make relevant comparisons with past quarters or years. We knew that sales during the second quarter would be under pressure, outside of our control. But that also meant that we were prepared and could take the right measures, which are reflected in the result of this quarter.

Speaking of numbers. Despite our net sales for the second quarter dropped MSEK 5 compared to the previous year, we managed to increase our operating result with MSEK 3,2 during the same period. This increase was achieved through significant cost improvements, in addition to some Government support. Once more we have reached all-time high levels regarding recurring revenue and gross margin. The latter is for the first time exceeding 70 %.These accomplishments again validate the strength of our business model. I remain confident that we are protecting our business well and remain on the right path.

On the people side, I am proud to announce that Pontus Bohlin agreed to take the baton as our COO.

Pontus has a solid knowledge of fintech in general and Westpay in particular. Having spent two years with Westpay, he has already proven his leadership in strengthening our processes and scalability.

Innovation remains our key for the future. During the second quarter we launched our brand new service innovations, Payment Application as Service (PAaS) and Swipe2Pay. With these solutions our customers can tailor-make their business applications and payment offerings, with Westpay technology as a core. This is truly great and strengthens our position as a leading provider in the fintech business.

Our status as an innovative and fast-moving provider will be even more valued as we will see new payment methods and behaviours start to emerge due to the pandemic situation. That's why we continue to have a high pace in our development department paired with intensified strategic planning. A big ear close to the ground and close dialog with customers and fintech partners give us information to stay proactive and relevant.

So, as you can see, in the short term we are adjusting our business to the current reality. But this doesn’t mean we are resting at Westpay. We are executing on a great roadmap ahead of us, the foundation for getting back on the growth track. Things might take more time, compared to the old normal. However in true Westpay pioneering spirit, we are turning this challenge into an opportunity that will eventually speak to our favour.


Published augusti 14, 2020

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