Date of lodgement: 13-Mar-2006 Title: Open Briefing®. Keycorp Limited. CEO & CFO on H1 06 Result Record of interview: corporatefile.com.au Keycorp Limited today announced EBITDA of $7.2 million before non-recurring items for the first half ended December 2005, up from a loss of $0.8 million for the continuing businesses in the previous corresponding period. You expect EBITDA in the range of $10 million to $13 million for the full year ending June 2006, down from $14.3 million for the continuing businesses in the previous year. What’s behind this weakness? CEO Bruce Thompson There are two critical things. One is that the initial phase of the hardware roll-out under our payment terminal services contract with Westpac has been largely completed. We have continuing services revenue associated with the contract but the revenue we’ve had over the past 12 months from the roll-out won’t recur. The other thing is the temporary slow-down we’re seeing in smartcard uptake, particularly in Asia. There are a number of reasons for that, which we’ll talk about later, but we don’t think that’s going to be a long-term issue. corporatefile.com.au Keycorp had net cash of $14.3 million (cash less debt) at the end of December compared with net debt of $1.1 million six months earlier. You’ve previously indicated that you’re seeking growth by acquisition. What progress have you made in pursuing acquisition opportunities and will you consider a further capital return to shareholders if a suitable acquisition isn’t identified in the near term? 2 CEO Bruce Thompson We’ll pursue acquisition opportunities and have the financial resources to do so. At 31 December 2005 the company had $15.5 million in cash reserves and the ability to borrow further to fund acquisitions. We’re in discussions with potential acquisition candidates but it’s too early to say whether they’ll come to fruition. We continue to look for businesses we understand, that add value and that fit our strategy of transitioning from a productfocused business into a provider of solutions and services.
KYC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
