Ace-listed MTouche seals deal with Indonesian firm on SMS app

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KUALA LUMPUR (Feb 9): Ace market-listed MTouche Bhd has sealed an exclusive licensing and revenue sharing agreement for its proprietary application “One Krypto”, with Jakarta-listed PT Inovisi Infracom Tbk.

The agreement stated Inovisi will be granted global marketing rights and revenue sharing that include subscription fees, recurring revenue and on app purchases, on “One Krypto”, as well as white label products, as long as average monthly licensing fees surpass US$150,000 (RM540,000), MTouche said in a statement today.

White label products are products based on “One Krypto” technology, but are rebranded and repackaged by other telecommunications companies, governments or corporations as their own, it explained.

MTouche (fundamental score: 1.35; valuation score: 0.30), a multimedia messaging platforms and applications developer, said the agreement would grant Inovisi the exclusive rights to distribute, market and commercialise the application in the Republic of Indonesia, Thailand, Japan, South Korea and Greater China, which includes the People’s Republic of China, Hong Kong, Taiwan and Macau.

In March 2014, MTouche launched ONE KRYPTO SMS, an SMS communication app that works by encrypting text messages on the phone, to be sent securely to other ONE KRYPTO SMS users.

Following the signing of the agreement, which is renewable on a year-to-year basis, MTouche will provide technical assistance and training to Inovisi.

On the other hand, Inovisi would be responsible for the hardware and infrastructure costs needed for the successful launch and continuous service of “One Krypto” or its white label equivalent, within the said countries.

Inovisi is involved in telecommunications, media & technology, energy & resources and engineering services.  

In the same statement, MTouche group chief executive officer Mohamed Zakhir Mohamed said the app can be used to protect one’s personal data, an organisation’s commercial interest, as well as for national security.

Additionally, Inovisi president director Jerry Djajasaputra said it expected demand for this platform to grow exponentially in the foreseeable future.

MTouche climbed 2.22% to close at 23 sen today, giving it a market capitalization of RM46.33 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)