SkyFii eyes up new markets on back of revenue growth
SkyFii (ASX:SKF) CEO Wayne Arthur has told investors that the tech company would seek to expand its presence into the UK, EMEA (Europe, Middle East, and Africa), and US markets – with key announcements to be made in the coming months.
Arthur was speaking to investors post-full year results on Friday, where it outlined growth of 260,000 to 800,000 unique users in the 2015 financial year and revenue growth of 13% year-on-year.
It said the step-change in revenue was down to earning fewer non-recurring fees, in exchange for more ongoing data analytics services.
Underlying the revenue result was a 175% increase in its retail mall segment.
SKF provides free Wi-Fi services which harvest consumer data, which it then analyses to identify trends and patterns for retailers to use to adjust their sales strategies.
In recent times, it has attempted to get more customers onto its analytics suite rather than just selling the connection and data.
SKF told investors that it had a potential pipeline of more than 450 retail malls lined up for the 2016 financial year.
Of that, the current pipeline for analytics services at the contract or commercial stage is now resting at over $9 million over a 3-5 year period, assuming full roll-out is achieved.
17 large shopping centres went live on Skyfii in FY15, with “at least” 17 due to go live in the first quarter of FY16.
Key highlights for the year included:
* Being chosen as the preferred wireless data analytics provider in a Telco-led consortium following a competitive tender process. Analytics services deployed in 6 retail malls by end of FY15 and expect to roll-out services to a minimum of 21 retail malls across Australia.
* Securing a master services agreement with the largest privately owned property management group in New Zealand. It deployed analytics services in one retail mall by the end of FY15 and expects to roll-out services to an additional three retail malls
* It secured master services agreements with The GPT Group, for up to 19 retail and office property assets across Australia. It deployed analytics services in three retail malls by end of the year with two additional malls scoped and due for installation in the first quarter.
* Federation Centres (now Vicinity Centres after merger with Novion Property Group) – successfully trialled and secured contracts to provide analytics services in 3 retail malls after a competitive tender process (prior to the merger with Novion Property Group).
* It was chosen as the preferred wireless data analytics provider to premium retail mall operator in Brazil following a competitive tender process. It deployed wireless services in three Iguatemi retail malls by end of FY15 and now expects to roll-out services to 14 Iguatemi retail malls across Brazil.
The next markets
Along with outlining the pipeline of potential contracts to investors, Arthur said the company would seek new markets in the coming year and hinted at short-term announcements.
“The year ahead will see SkyFii continue to expand its target verticals through continued development of the SkyFii platform,” Arthur said, highlighting the potential of the hospitality, healthcare, education and municipal sectors.
“Along with continued rollout of its current venue pipeline, the business is focussed on delivering new revenues through advertising and data services within its existing and future footprint.
“We are also aggresively promoting our services within new international markets including the United Kingdom, EMEA and North America and expect to be able to announce new partnerships in these key markets in the coming months. ”