MGM boasts growing income stream
Technology company MGM Wireless Limited (ASX:MWR) has recorded a sharp increase in monthly recurring revenue from its AllMyTribe smartphone app subscriptions as they reached a new record of $109,000 in December 2019, up threefold from December 2018.
As revenues being generated from this source are at a relatively early stage and have consistently demonstrated strong month on month growth over the last six months, it is worth looking at a comparison between revenues for the six months to December 2018 and the six months to December 2019.
During the latter period, AllMyTribe app revenues were $500,000, up 632% on the previous corresponding period.
As a backdrop, the app allows parents to be in constant contact with their children through the SPACETALK all-in-one smartphone, watch and GPS device.
Depending on subscription amount, either two, or up to five, SPACETALK devices may be used per subscription.
Subscriptions have surged in recent months, and the AllMyTribe app is currently the top grossing navigation app in Australia and New Zealand, as well as being in the top 150 grossing apps overall in both markets.
Commenting on the significance of building recurring revenues, MGM Wireless chief executive Mark Fortunatow said, “App revenue grew 30% from November to December alone.
‘’App subscriptions provide high-quality recurring revenue for the company, supplementing SPACETALK unit sales.
‘’They already make a significant contribution to our group revenues and they continue to grow.
Fortunatow highlighted that there is a low churn rate with the product, demonstrating the strong ongoing daily utility SPACETALK provides to families.
MGM will be introducing in-app purchase opportunities for health, fitness, diet, parenting, entertainment feature and other Internet of Things (IoT) capabilities to connect to home and other devices.
Management is of the view that AllMyTribe’s simplicity is central to its popularity, and the company is bearing this in mind in improving and refining the app constantly with new features.
Facilitates setting of safe zones
The AllMyTribe app is available through the Apple Store and Google Play with ongoing subscriptions available from $5.99 per month in Australia and £3.99 per month in the UK.
It allows parents to manage their child’s SPACETALK, see their child's location and location history, set safe zones, while also enabling ‘School Mode’ so that classroom periods are distraction free.
Importantly, a key safety feature of SPACETALK is that it doesn’t give children access to social media, apps, open internet, YouTube or other such services that can present dangers.
Sales revenue is received in full by MGM when the unit is sold and is not included in recurring revenue.
Developer of innovative products for schools
MGM has a proven track record when it comes to providing school communication solutions, having developed applications of SMS communication for schools since 2002.
The company created the world’s first SMS based Automated Student Absence Notification Solution and many other innovations since then.
It is recognised as a global leader and pioneer in socially responsible and technology-enabled school communication.
MGM Wireless products include student absence notifications ‘messageyou’, absence analytics software ‘Watchlists’, school news and messaging app ‘School Star’, a content management and messaging platform for mobile school communication called Outreach+, and student attendance management solution ‘RollMarker’.
Used by over 1400 schools and 1.7 million parents, the company’s school communication solutions empower schools to effectively communicate and engage parents and caregivers through SMS, mobile in-app and other means to improve student attendance and safety, help schools reduce operating costs and increase parent engagement.
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