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January 28th, 2021 | 10:28 CET

Software AG, Upco International, Moderna - Here's the new WhatsApp!

  • Blockchain
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WhatsApp is the world's leading messenger service, with over two billion users chatting, calling and sending photos to each other. However, by announcing that it was changing its privacy policy, the Facebook subsidiary has done itself a disservice. Users are now running away in droves. Competitor Telegram gained over 25 million new users within three days, and Signal was the most downloaded app in the Apple Store. Another company is also benefiting from the WhatsApp debacle, but this one can do much more than just Messenger.

time to read: 2 minutes | Author: Stefan Feulner
ISIN: CA9152971052 , DE000A2GS401 , US60770K1079

Table of contents:

    Significant increase in downloads

    Upco Messenger, one of several tools from cloud-based mobile Company Upco International, has seen a very sharp increase in downloads in recent weeks. In particular, Upco's key growth markets in the Middle East and Asia contributed to unprecedented growth rates of about 15% weekly since the beginning of 2021. Upco offers state-of-the-art "end-to-end encryption" for Messenger, which prevents messages from being stored and read by people who are not the intended recipient. In addition, the Canadians do not sell analytics or data usage to third parties. It was one of the main criticisms of WhatsApp and its parent Facebook.

    Well structured

    Through a radical reboot last year, the new management around the experienced CEO Andrea Pagani turned things around. The clear structuring into two business units was the key to sustainable success. The first unit is Wholesale Telecom, which corresponds to the classic telecommunications wholesale business. Here, better contract terms with international telecommunications providers for cross-border telephone traffic are achieved by pooling many smaller customers. Upco International coordinates Wholesale Telecom, but it will be operationally managed by earmarked companies that will be integrated into the group over time.

    Into the future with blockchain

    Wholesale Telecom is a natural fit for Upco International as a sales vehicle for its second division, Digital Services. This segment focuses on voice and data services as well as digital payments and money transfers. Voice and data services such as voice over IP and chats are handled through UpcoNet, while digital payments work through UpcoPay. Initially, UpcoPay will be innovative and highly secure as it is a blockchain-based direct payment method between individuals and merchants. Then, starting in 2021, Upco users in Europe will be able to use UpcoPay to send and receive money simply, securely, and without using a credit or debit card, but much more cheaply than competitors like Western Union or PayPal.

    UpcoPay is set to launch across Europe with Finnish partner Enfuce. The Upco International share has made a fabulous comeback in recent weeks from EUR 0.03 to EUR 0.19 at its peak. However, the stock market value is still a manageable EUR 17.92 million. If the new management strategy works out, higher prices should be seen in the long term.

    Above forecasts, weak outlook

    Software AG performed slightly better than expected in terms of revenue and earnings in the final quarter. Total revenue fell by around 7% to EUR 237.8 million, while EBITDA declined by a good quarter to EUR 62.5 million. At the same time, the forecasts for the year as a whole, which had been raised in November, were exceeded in terms of incoming orders. However, the Company had to slow down somewhat on the outlook. Management expects further burdens on earnings due to the faster switch to subscription models. The EBITDA margin in 2021 is likely to be between 16 and 18 percent, which is below analysts' forecasts of just under 21 percent. In 2023, however, the Company is targeting a margin of 25 to 30 percent. Shares nevertheless rose 7.2%to EUR 36 despite the gloomy outlook.

    On the verge of a breakthrough

    It's getting exciting. In the coming days, pharmaceutical giant Johnson & Johnson expects to receive data from a phase 3 trial of a Covid-19 vaccine. Unlike its competitors, this vaccine enables only a single dose to be sufficient for full vaccine protection. Of course, this would be a clear competitive advantage against BioNTech, Moderna and AstraZeneca. If the results are successful, an application for emergency approval will be submitted in the USA as early as February.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

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