Dexit eyes international expansion as first half losses quadruple

Dexit eyes international expansion as first half losses quadruple

In its first public filing since completing a C$22.69 million IPO in June, Canadian payments firm Dexit is reporting a fourfold increase in first half losses and eyeing national and international expansion opportunities.

Net loss for the six month period rose to $5.81 million or $0.98 per share in 2004 from $1.17 million or $0.57 per share in 2003.

The firm, which has signed up 32,000 consumers and 250 merchant locations in downtown Toronto, offers a new system which enables consumers to make small value payments by tapping an electronic tag on a merchant eftpos terminal.

In April 2004, the company signed an exclusive merchant licence agreement with Bell Canada and received a payment of $2 million in licence fees, of which $500,000 was recognised as revenue in the second quarter and $1.5 million as deferred revenue. An additional $21,440 in second quarter revenue came from merchant transaction fees, consumer refill fees, RFID tag sales, and miscellaneous fees.

Renah Persofsky, Dexit president and CEO, says the firm is now ready to expand from its initial focus in downtown Toronto to the Greater Toronto Area and other urban centres in Canada. Other domestic consumer licensees include Telus Mobility, TD Canada Trust, and National Bank of Canada.

Adds Persofsky: "We are having discussions with interested international parties which could possibly lead to the introduction of our innovative service in various international markets. We believe the Dexit service offers a compelling alternative to the use of cash for smaller transactions within Canada and internationally."

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