Fintech

Tencent need not envy Jack Ma’s finance fame

20 May 2019

The $432 bln tech giant has offered investors a peek into its mobile money arm. It is accelerating into payments and wealth management, catching up with the Alibaba founder’s Ant Financial. Ma’s aggressive expansion rankled bank regulators. Tencent would be wise to stay low-key.

Finablr fire sale implies more than dicey markets

14 May 2019

The Travelex owner cut the price of its IPO by 17%, eating into proceeds for its billionaire owner. Had jumpy markets been the only issue, the float could have been delayed. A drastic price cut instead suggests wider investor quibbles with the currency and payments business.

Finablr struggles to ride payments IPO wave

10 May 2019

The Travelex owner is pursuing a London listing that will value it at a minimum of $1.9 bln. The foreign exchange and payments company’s valuation is lower than recent fintech floats. After a mixed bag of European offerings, however, investors may already have had their fill.

Wirecard $19 bln short trade belongs on the shelf

8 May 2019

The payments group made a natural target for investors betting on share price falls after the Financial Times questioned the integrity of its accounts. But now CEO Markus Braun has the backing of auditors and SoftBank, and has upped EBITDA guidance. Shorts face too many hurdles.

PayPal’s ride-share with Uber may be bumpy

26 April 2019

The $129 billion payments company could pick up some decent new business by investing $500 million in the ride-hailing firm’s IPO. But Uber is a riskier bet than other firms PayPal has taken stakes in. CEO Dan Schulman could be in for an uncomfortable journey.

SoftBank’s easy credit doesn’t extend to Wirecard

24 April 2019

The Japanese group is putting $1 bln into the under-fire fintech firm. Unlike some of SoftBank’s flightier deals, this will be done with convertible debt. Wirecard gets validation from a respected backer, which gets a disruptor on the cheap without taking upfront equity risk.

Payments duo hush European IPO bankers’ lament

10 April 2019

Nexi and Network International are selling shares worth $4 bln amid a dearth of new issues in 2019. The Italian and Middle Eastern groups have reliable revenues and high margins, drawing interest even from edgy investors. Network’s superior growth rate merits a higher multiple.

Volvo’s green car forecast flashes an amber light

29 March 2019

Boss Hakan Samuelsson says electric vehicles will be as lucrative as gas guzzlers by 2025. Taken at face value, that's optimistic, given Tesla, BYD and Nio struggle to break even. It's also a warning: making traditional engines ever cleaner and more efficient is driving up costs.

Huawei’s charm offensive scores only half-points

27 March 2019

The Chinese telecom champion is engaging in an unprecedented public relations push, battling U.S. allegations of spying, IP theft and opacity. Its arguments about security have some merit, but the campaign might convince more sceptics if Beijing wasn't trying so hard to help.

Wirecard’s relief surge has gone too far

26 March 2019

The 15 billion euro payment group’s shares rose more than a quarter after a review found no evidence of any misconduct that would have a material financial impact. Its valuation is now uncomfortably close to sector stalwarts Visa and Mastercard. A bigger discount is merited.

Tencent needs new obsession to replace video games

21 March 2019

The web giant’s fourth-quarter earnings slumped by nearly a third to $2 bln as Chinese curbs on mobile games took effect. Bets on payments and cloud computing have yet to pay off, and Tencent’s M&A record is patchy. Investors deserve a clearer idea of where it’s headed next.

Middle East payments IPO is spiciest in hot sector

21 March 2019

Network International is planning a London listing that values it at up to $3 bln. A focus on emerging markets, where cash dominates, leaves plenty of room for electronic payments to take off. The risk is tech firms offer Middle Eastern and African shoppers a slicker alternative.

Rivals can fly around Google’s game cloud

20 March 2019

The U.S. web giant is stepping into gaming with a browser-based service. Console makers Nintendo and Sony lost a combined $3 bln of value on the news. Google's scale intimidates, but victory depends on exclusive titles that can out-drive Super Mario, not just lots of servers.

Financial firms’ dealmakers feast at fees trough

19 March 2019

Banks and payments firms account for four of this year’s 10 largest M&A transactions, after the FIS-Worldpay merger. It puts their advisers on track for the busiest and most lucrative year since the financial crisis. But there’s enough froth to suggest the good times won’t last.

Payments hype reaches new peak with $43 bln deal

18 March 2019

U.S. fintech group FIS is buying processor Worldpay for 20 times forward EBITDA. While there’s logic to rolling up companies with fixed costs and sticky clients, the price is punchy even for the fast-growing payments sector. The buyer’s own numbers imply disappointing returns.

Ping An offers up a glimpse of China’s bank reboot

18 March 2019

The insurance giant is preparing a $1 bln IPO for OneConnect, a startup offering tech support for mainland lenders, including fancy credit checks. Beijing wants banks to lend more to smaller, private firms, but few can handle the risk. It’s a dilemma that leaves a lucrative gap.

Breakdown: Shanghai stock venue shows promise

18 March 2019

After multiple Chinese trading-experiment flops, a new board for fast-growing tech and biotech startups looks more auspicious. Its rules strike a balance between liberalisation and discipline. The approach could improve mainland markets at the expense of New York and Hong Kong.

China’s housing unicorns are financial engineers

8 March 2019

A fundraising values flat-leasing startup Danke at $2 bln. Like rivals, it raises cash for expansion by taking out loans in tenants' names, rather than charge monthly rents. Owners, renters and banks are exposed if Danke flops. The practice is likely to overstay its welcome.

Payments IPO can shrug off sluggish Italy

26 February 2019

Domestic market leader Nexi is seeking a listing that may value it at some 7 billion euros including debt. Cash-loving Italians have traditionally shunned bank cards and digital transactions, but that’s changing. Closing the gap promises decent growth, even in a slowing economy.

Nintendo plays winning Japanese buyback game

26 February 2019

The Super Mario maker is repurchasing $300 mln of stock and cancelling hoarded shares as owners like Bank of Kyoto adapt to new cross-holding rules. Buybacks can be a poor use of cash, but with Japan Inc holding $4 trln in reserve Nintendo is joining a worthwhile movement.