The Australian-listed MGM (ASX:MWR) also reported the net number of user “family members” connected on the AllMyTribe App (registered family users less cancelled App subscriptions) reached 195,000, and over 33 million GPS location updates were provided during FY20.
MGM Wireless executive chairman Mark Fortunatow said in the company’s FY 2020 annual report that the integration of MGM’s devices with its app - which operates on both Android and iOS - is a “differentiator which makes us such a compelling product for our customers and lays the foundation for future developments”.
Fortunatow said that with 30% of all smartwatch sales expected to be for children aged 5 to 13 (predicted by leading industry analyst Gartner), and an ageing population drawn to independent living, sales growth of Spacetalk to date “supports our belief that we are witnessing just the start of a large new category for mobile phone wearables for young children and seniors”.
Along with the 47% growth in revenue, MGM Wireless lists highlights from the FY20 financial results as:
- SPACETALK devices and AllMyTribe app -−Device revenue up 53 per cent pcp to $6.4 million−AllMyTribe app revenue up 180% to $1.2 million−AllMyTribe app annualised recurring revenue (ARR) up 89% to $1.5 million−highest grossing app in the navigation category in Australia, with a 4.1 user satisfaction rating.
- MGM Schools Division−Revenue up 25% pcp to $2.7 million−EBITDA contribution (excl. corporate overhead costs) up 58% to $1.9m−$1.3 million contract with WA Department of Education
- A strengthened balance sheet to fund growth, with cash at bank on 30 June 2020 of $3.1 million (plus $2.5 million SPP proceeds) and no debt.
“The outstanding growth delivered by your company across all revenue lines validates the progression of our strategic purpose and growth strategies,” Fortunaow said in a foreword to the annual report.
“Despite COVID-19 upending economic activity globally, the growing importance of family support and online connectivity are structural thematics which have become more entrenched and further support our Pur-pose and core value proposition. Our focus is firmly on growth in customers and revenue.
“The success of our customer acquisition and growth business model is quickly replicable in new markets, and in FY20 our marketing and advertising return on investment (ROI) increased by 149% pcp, while customer acquisition costs (CAC) de-creased by 42% pcp.
“Being an early mover with a long-term, mass-market opportunity ahead, we maintain a strong and flexible balance sheet, ending FY20 with a cash balance of $3.1 million (plus $2.5 million SPP proceeds) and no debt.”
Fortunaow said MGM Wireless’ primary strategic focus is to “pioneer innovation technologies for keeping families safe and connected”.
“Built on the foundations of creating effective new ways for schools to communicate with parents, through developing the world’s first school automated SMS student absence notifica-tion solution, MGM Wireless is recognised as a pioneer and global leader of socially responsible technology. Our suite of school communication solutions are used today by over 1,400 schools and 1.7 million parents," Fortunaow said.
“Our SPACETALK devices now sell in Australia, New Zealand and the UK.
“In FY20, we built on the successful launch of SPACETALK with Australia’s largest consumer electronics re-tailer JB Hi-Fi and New Zealand’s largest telecommunications provider SPARK, to entering new sales and distribution agree-ments with Sky in the UK and Vodaphone, Harvey Norman, Officeworks, Kogan and Dick Smith across Australia and New Zealand, increasing the number of retail outlets selling SPACETALK devices to a total of 902 stores.
“Our value proposition is defined by 1. the global market oppor-tunity, 2. our multi-product, geography and customer category offering, 3. being a leader in the niche for children and seniors, and 4. our gaining sales traction and partner validation.
“We are tremendously excited by the roll-out of our new SPACETALK Life device for seniors, upcoming launch of a new SPACETALK Kids 2 device and ongoing enhancements of our AllMyTribe subscription app, which provides tremendous opportunity to revolutionalise how families interact safely and live with support, independence and confidence,” Fortunatow said.