In a stock exchange trading update issued on Monday to the ASX, MGM (ASX:MWR) reported:
- Over 5000 Spacetalk watches shipped in past two weeks to over 270 bricks and mortar retail stores in Australia and New Zealand;
- Pilot (pre-rollout) Stores experiencing strong sales and re-ordered twice within first six days;
- $850,000 Australian advertising will commence in November to support store sales;
- NZ SPARK sales to commence next week, with high profile PR, Advertising and In-store New Zealand campaigns;
- Revenues from SPACETALK continue to exceed expectations both directly via www.spacetalkwatch.com and in initial bricks and mortar stores; SCHOOLS business has record quarter; and
- New SPACETALK product features include weather and a popular new colour, Pink.
“It has been a very successful and eventful year for the company. We have made meaningful and substantial progress in creating a new business and transforming MGM to a fast growing ‘wearables’ company,” MGM says in its ASX update.
MGM previously announced that, based its distributors anticipated demand, it had ordered approximately 23,000 units to be manufactured.
“We are expecting delivery of the remaining 15,000 units of that order to be received in batches over the coming 6 weeks to meet demand. Our discussions with other major domestic and international bricks and mortar retailers, telecoms and distributors are ongoing with potential for further announcements in early 2019,” the statement says.
On its Australian marketing campaign, MGM says its intention is to conduct a high-profile Australian advertising program to support bricks and mortar sales leading into the important Christmas and back to school periods.
MGM confirmed that program is in the process of being implemented and will include:
- Extensive, high profile, Billboard and Out-of-home advertising in 71 leading Shopping Centres in Sydney, Melbourne and Brisbane. (click to see Billboard examples).
- Extensive Video and Image Digital and Social Media campaigns (click to see Video). The investment in the whole program will be $850,000.
MGM has reported year to date consolidated revenues for Spacetalk sales to October 2018 are up 181% YoY and expected to exceed FY18 full year revenue - $2.74 mil - before calendar year end.
“MGM is in an absolutely fantastic position leading into the key the Christmas and Back-to-school sales period. Every few days, sales results come in that exceed our expectations – meaning we have continuously needed to re-forecast our production numbers upwards. Having secured a 270 store Australian distribution network of first tier electronics retailers JB Hi-Fi and Leading Edge, plus our first (and international) mobile network operator Spark New Zealand – the Company is in an absolutely amazing position in this fast growing wearables sector,” MGM co-founder and chief executive Mark Fortunatow said.
“With our marketing program finalised, stores stocked with their initial inventory and in store merchandising supplied, the stage is set and we anticipate reporting some amazing sales results in the new year. Our aim is to be the dominant brand in this exciting new product category.”