, Singapore

New customer acquisitions could boost Venture

Its unique offerings and hard-to-replicate ecosystems could kickstart its rebound.

New customer acquisitions paired with new products and sustained expansion into non-traditional markets with higher markets could work well for Ventue in the near-term, DBS Equity Research said.

“Whilst Venture has been penalised by the market over the lack of clarity in its underlying business profile, positive steps taken to improve transparency and communication, evidenced by rare disclosures made in its outlook statement this quarter, signals a brighter future,the firm said.

By Q4, DBS Equity Research predicts the Venture may approach strong sequential growth as new product introductions and contributions from new customers kick in. In the long term, customer M&As and the US-China trade wars which have been hitting the firm in the near term may actually sprout business opportunities ahead for Venture, the research firm noted.

“We remain positive on Venture’s unique offerings, know-how and hard-to-replicate ecosystems,” they added.

Meanwhile, DBS Equity Research thinks that key risks for Venture would be the broad global slowdown as the firm is vulnerable to business cycles. Additionally, potential weakening of clients’ end-demand and the USD could also dampen revenue growth.

Venture saw its profits drop 27.5% YoY from $111.4m to $80.79m in Q3 2018. Revenue also fell 27.4% to $770.38m.
 

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