Keycorp moves back into the black

Australian transaction systems vendor Keycorp is back in the black after reporting a $321.5 million loss for 2001-2002.

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Keycorp moves back into the black

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Sydney-based Keycorp reported a $1.1 million net profit for the half year to December 2002 against a net loss of $27.6 million in Q1 2002.

Revenue for the six-month period was $52.3 million, compared with revenue of $45.8 million for the corresponding period.

Keycorp is forecasting a similar result for the second half, with revenues between $50 million and $60 million and a maximum net profit of $3 million.

The full year loss of £321.5 million for 2001-2002 included $296.3 million in exceptional charges.

Keycorp CEO Bruce Thomson attributes the turn around to a successful cost reduction programme and improving revenues, with growth in access devices and smart cards picking up. "We are on the path to reporting, as promised, a profitable result for the full year," he says.

The company recently completed a debt refinancing agreement with ANZ and has moved to restructure its balance sheet to free up working capital.

"We are now focussed intently on implementing our growth strategies in international markets, as well as maintaining and growing our leading position in the Australian payments industry," says Thomson.

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