- Mobile data provider Flexiroam (FRX) reported an increase in earnings for the 12 months ending March 31, 2022
- The company saw a 40 per cent increase in revenue to $3.69 million which it attributed to new contracts signed within its Solutions business and the recovering travel industry
- Flexiroam also experienced a 250 per cent increase in profits to $1.48 million and $3.45 million in cash receipts, representing a 95 per cent increase on the previous year
- The company ended the year with $4.2 million in cash and claims it’s “very well positioned” to capitalise on new opportunities
- Company shares are trading flat at 3.5 cents at 10:59 am AEST
Mobile data provider Flexiroam (FRX) has announced its financial results for the 12 months ending March 31, 2022.
The company said it experienced a “strong improvement” in financial metrics, including a 40 per cent increase in revenue to $3.69 million which it attributed to the recovering travel industry and initial revenue from its Solutions business.
Flexiroam said it signed 15 Solutions contracts in the second half of the financial year which will all be generating cash from the first quarter of FY23 and adding $2 million in annualised revenue.
New partnerships were established with travel insurance companies such as Tune Protect EMEIA and Malaysia, and Discovery Health, which involved bundling Flexiroam’s data packs with their insurance policies.
The Malaysia-based company also partnered with The Athletics Association and the Association of Tennis Professionals to provide global roaming data for athletes, coaches and members.
Notably, Flexiroam’s existing partnership with Mastercard was extended for a third year. The deal makes the company’s global data plan available to qualified Mastercard cardholders at partnering banks who’ll receive a 15 per cent discount on Flexiroam data plan purchases.
Flexiroam reported $1.48 million in gross profits, up 250 per cent from its loss of $986,370 in the prior corresponding period (12 months to March 31, 2021).
The company also achieved $3.45 million in cash receipts, representing a 95 per cent increase on the prior corresponding period.
CEO Marc Barnett described the company’s FY22 as a “transitional year” as it focused on capitalising on the growth of international travel.
The communication services company said data usage from Travel users increased to pre-pandemic levels and it expects the growth to continue into FY23.
In terms of expenditure, however, Flexiroam incurred an operating loss of roughly $4.2 million compared to its $2.4 million loss in the prior year. It recorded net cash operating outflows of $2.5 million compared to its 2021 outflow of $538,521.
“To improve margins, we are focused on reducing data costs, on our journey to building a profitable and sustainable business. Our increasing scale improves our ability to negotiate more favorable terms with network operators and aggregators,” Mr Barnett said.
After undertaking two capital raises during the 12-month period, Flexiroam ended the year with $4.2 million in cash and said it’s “very well positioned” to capitalise on new opportunities and increase revenue.
Company shares were trading flat at 3.5 cents at 10:59 am AEST.