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MGM Wireless

MGM Wireless marks record third quarter results with revenue up 392%

The Spacetalk smart watch has experienced increased growth since its launch from a single online portal in October 2017.

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Spacetalk is the first of its kind to be wholly developed in Australia and one of the first worldwide

MGM Wireless (ASX:MWR) has posted record third quarter results with revenue up 392% on the prior corresponding period, reaching $1.4 million following surging sales of its all-in-one children’s smart watch, mobile phone and GPS tracker known as Spacetalk.

Financial year revenue to March 31, 2019 was up 193% on the same period last year to $5.47 million as Spacetalk unit sales rose by 1603% to 16,100 in the same period.

“Growing subscriber numbers”

MGM Wireless chief executive Mark Fortunatow said: “March quarter sales are seasonally the slowest for the year in the consumer electronics industry, so we are absolutely delighted with these results.

“We are particularly pleased to see growing subscriber numbers and low churn rates that customers who bought a Spacetalk device leading into Christmas are overwhelmingly positive about their purchases.”

By using the Allmytribe app, Spacetalk enables parents and children to be in constant contact and allows parents to see their children’s location on their smartphone without access to the internet or social media.

Parents are notified when their child leaves designated safe spaces such as school or home.

READ: MGM Wireless on countdown to Spacetalk smart-watch UK launch

The company spent almost four years designing and developing Spacetalk in Australia after identifying a niche market in children’s wearables.

Fortunatow said a new version of Spacetalk has been specifically built for the UK, which operates the 900/2100 bands making Spacetalk compatible with the mobile phone spectrum across Europe.

He continued: “Our main energies will be directed at the UK market and its predominantly English language customers.

“We are actively negotiating and launch planning with several parties and expect to be able to make an announcement in due course.”

UK market “about three times the size”

Spacetalk features include a stopwatch, torch and enhanced school-mode which allows parents to select which watch functions to disable during school hours such as incoming and outgoing calls and messages.

Fortunatow added: “With a population of more than 66 million people, the UK market is about three times the size of our home markets of Australia and New Zealand.

“We feel we have an advantage in terms of quality, customer service in the aftermarket and a secure Spacetalk app which appeals to the UK market.”

Quick facts: MGM Wireless

Price: $3.94

Market: ASX
Market Cap: $49.31 m
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