- MGM Wireless (MWR) has reported increased in both revenue and gross profit for the first half of the 2020 financial year
- Revenue is up 87 per cent from the prior corresponding period to $7.6 million, while gross profit was up to $5.1 million
- MGM credits these increase to the success of its SPACETALK smartwatch
- SPACETALK allows parents to communicate with their children through text messages and mobile calls without allowing access to the internet
- Sales from this device grew 140 per cent to $6.3 million
- The company expects revenue for the remainder of the financial year to increase by as much as 85 per cent to $13 million
- MGM's share price has increased a slight 3.03 per cent with shares currently trading for 17 cents
MGM Wireless (MWR) has reported increased in both revenue and gross profit for the first half of the 2020 financial year.
Revenue was $7.6 million which is an 87 per cent increase from FY19 while gross profit was $5.1 million, compared to the prior corresponding period (pcp) of $2.95 million.
These increases are a result of the success of MGM's SPACETALK smartphone watch with revenue increasing 140 per cent from the pcp.
"This is a strong result, with revenue for the half exceeding revenue for the full FY19 financial year," CEO Mark Fortunatow said.
"Distribution through retail stores trebled year on year, and the Christmas season was very successful with substantial promotion by partners building awareness of the SPACETALK all-in-one children's smartphone, watch and GPS device," he added.
The SPACETALK smartwatch allows parents to communicate with their children through 3G text messages and mobile calls without allowing access to the internet.
This means popular social media apps like Facebook, Instagram and Snapchat cannot be accessed or used on the device.
Parents are able to block calls and messages from unknown numbers and will be notified if any try to call.
SPACETALK also boasts the likes of GPS tracking that can send timed updates on the wearers' location.
Monthly recurring revenue for AllMyTribe smartphone app subscriptions continued to grow, hitting a monthly record of $120,000 in January 2020 compared to $109,000 in December 2019.
AllMyTribe allows parents to manage their child's SPACTALK, see their child's located and location history, and set safe zones.
This app is currently the top-grossing navigation app in Australia and New Zealand and has entered the top 20 in the U.K.
Even net loss was down to $2.7 million which is due to a one-off non-cash expense of options issue of $2.4 million.
During the half, MGM received a new contract from the West Australian Department of Education to supply student absence and emergency messaging services to all WA government schools.
This contract is valued at $1.3 million for a two year period but can be extended for an additional two years.
For the remainder of the 2020 financial year, MGM expects revenues will be an approximate 75 per cent increase on the pcp to between $12-$13 million.
MGM's share price has increased a slight 3.03 per cent with shares trading for 17 cents apiece at 1:49 pm AEDT.