Thursday, 30 January 2020 00:54

Sales of SPACETALK drive MGM Wireless revenue to new heights Featured

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MGM Wireless, the maker of the Spacetalk all in one children’s smartphone, watch and GPS device, has announced unaudited revenue of $7.6 million for the first half of the 2020 financial year - up 86% from $4.1 million for the same period in FY 2019.

 The ASX-listed MGM (ASX:MWR) also reported that Australia and New Zealand sales of SPACETALK were 19,800 units in 1H FY20 - up 80% on 11,000 units - while SPACETALK distribution increased to 777 stores in 1H FY20, compared with 270 stores a year ago.

The company entered new bricks and mortar store agreements with Officeworks in September 2019 and The Good Guys in November 2019 and extended distribution in New Zealand.

And UK sales of SPACETALK were 5,200 units in 1H FY 20, with initial sales via the company’s SPACETALK.co.uk website that launched in May 2019.

After entry into the UK market, in August 2019, MGM entered into an agreement with Sky, Europe’s leading media, entertainment and telecommunications company, owned by Comcast.

Sky commenced selling SPACETALK on a 36 month, £10 per month plan, which includes the SPACETALK device, mobile services and AllMyTribe App.

MGM Wireless CEO Mark Fortunatow said: “This is an outstanding sales and trading result. We’re starting to see meaningful growth in scale with significant volumes in units and revenue”.

“Impressively, first half sales exceeded the company’s entire FY19 revenue. We’re accelerating momentum on our strategy of selling a high-quality, reliable children’s mobile phone in the fast-growing wearables category.

“In the western world, we are the market leader in this early stage of a brand-new retail category – children’s wearables – which is growing extremely quickly. Analysts Gartner anticipate that global spending on wearables will be US$52 billion in 2020, with smartwatches on pace to achieve the greatest revenue potential.

“Our Australian and New Zealand operations have continued strong progress with sales up 80% on 1H FY19 off a significant base. Customers love our product and distribution of SPACETALK has tripled since 1H FY19.

“The UK aggressive Christmas marketing campaign only began in mid-December. It generated tremendous volumes of sales for the 2-week period prior to Christmas. This 2-week period propelled sales to exceed sales for the preceding six months by 50%, resulting in 400% growth above Australian sales for the same period after launch.

“We expect UK sales will continue to grow strongly, particularly with the next phase of the UK marketing program launching in February.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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