Paysafe: Clarifying Position On Turkish Exposure
Edison | May 23, 2017 03:45AM ET
In a follow-up to its December report, Spotlight Research claims that Paysafe (OTC:NVAFF) is processing online gambling transactions in Turkey, a country in which online gambling is illegal. The company confirms that this is not the case, and that non-gambling-related processing in Turkey does not make a material contribution to earnings. We make no change to our forecasts and our investment thesis is unchanged.
Short-seller Spotlight Research has published two follow-up reports to its December 2016 report. One reiterates its view that Paysafe’s exposure to Chinese online gambling is larger and of higher risk to earnings than is currently factored in by the market. We estimate that the total loss of the Asia gateway business (reported in Payment Processing) would reduce Paysafe’s FY17 EPS by c 20%, which in our view is more than reflected in the current valuation.
To read the entire report please click on the pdf file below:
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