- MGM Wireless’ smart ‘SPACETALK’ watch isn’t going anywhere by the looks of it – announcing today sold units of the product have grown by 933 per cent
- This announcement comes as no surprise since the company made a major distribution deal with the UK’s Sky Mobile to bring the product at a low price to mobile plan subscribers
- CEO Mark Fortunatow says the customer base opportunities in the UK are three times the size of Australia’s
- Mark also likened the kid-friendly smartwatch to the 90’s mobile phone boom and the subsequent smartphone boom
MGM Wireless’ child-friendly smartwatch, known as SPACETALK, has gained recognition and traction for its innovation and user-friendly design.
After back to back distribution agreements and shareholder interest, the company demonstrated today the product has no interest in stopping – achieving record sales revealed in a business update this morning.
The watch functions much like an apple watch or any of the like.
However, SPACETALK only allows wearers to call mum and dad and restricts applications like Instagram, Facebook, Snapchat and many others that give parents the heebie jeebies.
“We are operating in a new, fast growth market and benefiting from competitive advantages,” MGM Wireless CEO Mark Fortunatow said.
“Our product is the world leader in the children’s wearables segment, because of its exceptional reliability, high quality, ease-of-use, while meeting the highest standards of data security and privacy standards,”
Across the financial year, SPACETALK alone sales grew 933 per cent to deliver $4.6 million in revenue. This marks a phenomenal increase in sales revenue from the previous financial year’s performance of only $500,000.
Shareholders in MGM have also seen massive growth this morning, as the company’s share prices grew 6.09 per cent to $4.18 each.
“This was an outstanding result with sales of our SPACETALK smartwatch, mobile phone and GPS device increasing from 1,785 units in FY18 to 18,270 units in FY19,” Mark added.
“Total revenue grew 161 per cent from $2.7 million to $7.1 million, as the rollout of SPACETALK gathered significant momentum with the signing of additional major international retail distribution agreements,”
The UK has provided major distribution for SPACETALK, especially after MGM signed a sales agreement with Sky Mobile.
From the start of this month, Sky began selling SPACETALK units under a £10 per month customer plan.
Not only did this agreement boos the product’s exposure, MGM claims the UK’s addressable market to be three times the size of Australia’s.
“SPACETALK is becoming the ‘hot, must have’ mobile phone product among children aged between five and 12,” Mark said in closing statements
“Just as in the 1990s with the mobile phone, and the 2000s with the smartphone, we are now witnessing the emergence of a new mobile phone product category the children’s wearable mobile phone, in which SPACETALK is the market leader,”
Today, MGM Wireless’ market cap is valued at $49.30