TSN gets out of a jam in India; reports lower loss after move into cybersecurity
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Transaction Solutions International’s decision to focus on Aussie cybersecurity — and step away from Indian ATMs — is proving valuable.
TSI (ASX:TSN) reported a much smaller loss in 2018 — shrinking to $590,000, compared to $1.3 million in fiscal 2017.
The company measures its financial year to March 31.
In August TSI bought Decipher Works, a Sydney cybersecurity company, for $5.1 million.
That acquisition allowed it to stop wholly depending on its 24.89 per cent stake in TSI India, an ATM operator, for revenue.
TSI was originally supposed to buy the remaining 75 per cent of TSI India from private equity firm CX Partners.
But India’s drastic demonetisation policy in December 2016 torpedoed that plan: it purged all 500 and 1000 rupee banknotes from circulation, sent revenue and transaction numbers south.
The company says it saw revenue of $2.36 million in fiscal 2017 which mainly came from Decipher Works since August.
Revenue in 2016 was $91,766.
Since Decipher Works has made such a positive impact on TSI’s bottom line, the company is keen to make more acquisitions.
TSi is regularly pitched as a potential blockchain play by small cap investors, but to date has refrained from entering that space.
TSI has been contacted for comment.
The company’s shares were flat on Tuesday morning at 0.6c.