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| Subject: Keycorp received from Telstra in exchange for 51%control of Telstra's e-commerce transaction network | |
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Author: anonymous |
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Date Posted: 22:50:17 12/04/02 Wed http://old.smh.com.au/news/0106/01/biztech/biztech9.html ----------------------------------------------------------- Keycorp's slow road to profitability drives down price Keycorp chief executive Michael Thomes. ----------------------------------------------------------- By Sue Lowe ----------------------------------------------------------- Shares in electronic payments company Keycorp hit a low of $2.62 yesterday, following a director's report that has become all too familiar to shareholders - a positive long-term strategy, strong orders but a black hole where profits were expected. ----------------------------------------------------------- At the annual general meeting the company foreshadowed an operating loss for the first half of 2001 of $10 million to $15 million, or $30 million to $40 million when amortisation of goodwill - mostly related to the value of assets involved in last year's pact with Telstra - is taken into account. ----------------------------------------------------------- It follows a net loss of $14.7 million for 2000, on revenues of $105.7 million, also about $15 million below projections. ----------------------------------------------------------- Chief executive Mr Michael Thomes said the result for the first half of this year would have been positive were it not for delays with its K78 mobile payments terminal - the subject of several multi-million-dollar orders announced to the market. ----------------------------------------------------------- The delay was blamed on the certification procedures being conducted by prospective banking customers. The K78 is a smartcard-based, handheld EFTPOS device. "It's a high security product," Mr Thomes said. ------------------------------------------------------------ But some shareholders were less than impressed with more excuses for delays. Last year's result also was knocked by the K78; before that it was component shortages. ------------------------------------------------------------ The company said the delays should be resolved by July. ------------------------------------------------------------ Following Telstra's acquisition of a 51 per cent stake in the company last year, in exchange for Keycorp taking control of Telstra's e-commerce transaction network, the company has been restructured into four units; smartcards, due to account for about 20 per cent of revenue; access devices, which should account for about 30 per cent of revenue but is currently "suffering badly"; transaction networks, which will account for 35 per cent of revenue, while e-commerce will make up the last 15 per cent. ------------------------------------------------------------ In all four areas Keycorp pointed to prospects for strong growth. In smartcards the big news was the $US45 million ($83 million) deal signed with Mastercard International. ------------------------------------------------------------ Shares in Keycorp closed at $2.71, down from a yearly high of $15.79 in June 2000. ------------------------------------------------------------ [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Re:Keycorp control-Telstra's e-commerce transaction network | anonymous | 22:52:14 12/04/02 Wed |