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MGM Wireless taps into Kogan’s large customer base
2 minute read
Developer of state-of-the-art communications devices MGM Wireless Limited (ASX:MWR) announced on Wednesday that it had negotiated a new retail agreement with online retailer Kogan.com.
Under the terms of the agreement, Kogan will sell the SPACETALK all-in-one kid’s smartphone, watch and GPS device on the Kogan and Dick Smith websites across Australia and New Zealand.
The company’s all-in-one smartphone, watch and GPS device, SPACETALK, allows two-way phone calls and SMS messaging for children to a parent-controlled list of contacts.
Other safety features include GPS tracking which alerts parents when children leave designated safe spaces, such as school or the home.
SPACETALK doesn’t give children access to social media, apps, open internet or other such services that can be dangerous to young children.
The subscription-based AllMyTribe mobile app enables parents to manage SPACETALK devices.
Agreement provides access to 1.7 million customers
Commenting on the significance of this agreement, MGM Wireless chief executive Mark Fortunatow said, “Kogan.com is a sophisticated e-commerce and online retailer, with an active customer base of nearly 1.7 million.
‘’Its loyal base of repeat online customers and AI-powered marketing will help SPACETALK to reach a new and unique audience.
“We’re delighted to commence this new partnership with Kogan.com, further driving sales of SPACETALK in Australia and New Zealand.”
SPACETALK is sold in 777 retail stores in Australia and New Zealand and 100 retail kiosks in the UK, as well as online channels.
SPACETALK to drive record revenue growth in fiscal 2020
Sales of the highly successful SPACETALK underpinned record revenues in the Christmas period, resulting in an increase of 87% to $7.6 million in the first half of 2020.
To put this in perspective, first half 2020 revenues exceeded total revenues in fiscal 2019.
In providing group guidance for fiscal 2020, management said that strong annual revenue growth is sustainable, with a seasonal swing towards the first half which includes the Christmas sales period.
Based on existing distribution channels (at that stage, including Kogan), the company expected revenues for the second half of fiscal 2020 would be approximately 75% higher than the previous corresponding period.
On that basis, management has forecast that full-year revenue will be in a range between $12 million and $13 million, a year-on-year increase of between 70% and 85% respectively.
MGM has entered 2020 with a strong balance sheet.
With minimal debt of about $1.7 million and cash of $5.0 million the company has the capacity to invest in further product development and marketing initiatives.