Online transactions provider Keycorp has posted a $14.7 million loss for the 12 months ending 31 December, despite strong growth in smartcard and e-commerce operations.
Keycorp reported a 24 per cent increase of group revenue to $105.7 million.
Keycorp is blaming the losses on contractual stalls - extended periods for certification on contracts, delays in procurement to meet demand and longer than anticipated finalisations of large contracts. The company said the losses are in line with Keycorp's outlook released in October 2000.
Unfazed by the losses, the company is confident about the future. It claims a $29.9 million research and development investment in 2000 has paid off - securing an alliance with Telstra and a contract with MasterCard.
Telstra recently took about 51 per cent of Keycorp's share capital in return for its EFTPOS payments carriage business, and Keycorp will deliver approximately 15 million MasterCard smartcards over the next two years.
Keycorp undertook several acquisitions over the last year in an effort to forge a niche on the global scene. The company is leaning on these initiatives to generate revenue in the coming year.
Keycorp shares rose 15 cents yesterday to close at $7.13.