First two deals vindicate technology, says Plus SMS

The first two commercial deals for listed technology company Plus SMS Holdings are a vindication of its global text message strategy, the company says.

Chairman Jim Bracknell described the licensing deals as a banner day for the business.

"You have an idea ... that international text messaging using short codes would work then you really find out for sure when a client is willing to pay you for that opportunity," Bracknell said.

Plus SMS Holdings enables companies to run global text message campaigns and competitions using single numbers.

This involves routing messages over existing telecommunications infrastructure and using the settlement processes that are in place for payment.

In December, Plus SMS signed an agreement giving Singapore-based International Sports Television the right to market various international short codes including "sport", "rugby" and "football".

International Sports has now concluded the first two international short code number agreements, each of which is expected to exceed a value of A$2.5 million ($2.9 million).

One deal is with a company that intends to produce a quiz show, hosted by a Bollywood star, for Indian television.

The other company would provide a subscription service for parents in Australia and New Zealand to track the whereabouts of their children using the latest satellite technology and an internet portal.

Bracknell said the exact details of how the companies planned to use the international short codes was subject to approval by Plus SMS Holdings.

"We are at a point where the market is becoming increasingly aware of the manifold applications of the Plus SMS products and these first two contracts demonstrate that it is willing to pay a good price for the benefits our products can deliver."

Plus SMS Holdings posted a loss of $1.3 million for the 10 months to September.

"We've said all along that we hope in this calendar year that we will be positive cash and that's still the case," Bracknell said.

In January, Plus SMS signed a letter of intent with Citic Telecom 1616 giving it access to the Chinese organisation's platform and client base.

In the same month, the company said it planned to list its UK subsidiary on the London Stock Exchange's AIM market in a move that would give Plus SMS Holdings shareholders cash in exchange for a 15 per cent stake in the physical company.

Plus SMS Holdings joined the NZX Alternative Market last July through a back door listing using the shell of failed retailer RetailX.