Adelaide, 20 August 2020: Leading Australian software technology company MGM Wireless has announced a sharp increase in sales of its flagship SPACETALK smartwatch phone for kids, as the business bounces back from the impact of COVID-19 restrictions.
Families and schools embraced the digital world during various stages of lockdown throughout the country, driving growth of SPACETALK’s app revenue, which remained strong throughout the year.
CEO and co-founder Mark Fortunatow said that the SPACETALK brand was a major factor in MGM’s resilience at a challenging time for all businesses.
“With most retailers shuttered and people staying at home in March, there was a related decrease in SPACETALK device sales, but as restrictions eased there has been a sharp improvement, all the way back to pre-COVID levels,” Mr Fortunatow said. “This proves the core strength of the brand in what has been a tough year for everyone.”
More than 195,000 connected family members accessed SPACETALK’s AllMyTribe app, which parents use to configure the SPACETALK device. Over 33 million GPS location updates were requested via the app over the course of the year. AllMyTribe now ranks as one of Australia’s most popular and financially successful apps with a 4.1-star user satisfaction rating.
Total revenue from the SPACETALK business grew by 65% to $7.6m in FY2020.
As well as signing a new retail subscription sales agreement with leading mobile network operator Vodafone Hutchison in June, the company launched SPACETALK Life, a wearable smartphone, watch and GPS device for seniors. The 4G, IP67 waterproof device serves a large, rapidly growing market which is complementary to the successful SPACETALK children’s smartwatch business.
“Families want to stay in touch more than ever, which makes the launch of our new SPACETALK Life smartwatch phone for seniors so very timely,” Mr Fortunatow said.
“We are now focused on continuing the expansion of SPACETALK distribution here and in the UK and Europe, the roll-out of SPACETALK Life, launch of our new SPACETALK Kids 2 device and further enhancement of our subscription app.
“We are well positioned to continue our growth in the current financial year.”
MGM School Communication
MGM’s School Communication division also experienced a surge, based on a major $1.3m contract with the Western Australian Education Department as well as increased SMS demand from schools during the bushfire season and for COVID at-home learning messaging.
“Our schools business has always been a solid performer, but exceeded our expectations with second half 2020 revenue almost doubling to $1.48 million,” Mr Fortunatow said.
“This was primarily due to the effects of the new WA Education Department contract awarded in February, and an increase in school use of MGM’s SMS messaging solutions for summer bushfires as well as COVID-19.”
Other 2020 Highlights
Other highlights for the year included a successful capital raise to existing shareholders which was 360% oversubscribed; paying down a convertible note to become debt-free; and entering a new retail agreement to sell SPACETALK on the Kogan and Dick Smith ecommerce platforms.
In May the company announced the appointment of experienced investment and finance expert, Mr Martin Pretty, and internationally recognised and awarded design expert, Dr Brandon Gien, as non-executive directors of the Board.
The company has strengthened its Executive Management Team with the appointment of Joe McArdle, former head of Online Sales and Marketing – Amazon Devices to the role of Head of Marketing and eCommerce.
New Investor Social Media Page
SPACETALK Investors are invited to follow a Twitter Page and a LinkedIn Group created to provide regular updates and investor related information. We encourage all investors to follow, join and ask questions on these forums.
About MGM Wireless
MGM Wireless Limited is a Software Company that designs and develops breakthrough technology and wearable devices that enrich connections between families, schools and society.
The Company is recognised as a global leader and pioneer in socially responsible technology for schools and families. Everything we do is built on our unshakeable desire for families to feel safe and secure so that they can live with freedom, independence and joy.
In 2017 the company shifted to wearables, developing the market leading SPACETALK children’s smartphone watch which now commands a significant share of the overall business.
The company has 165m shares on issue. CEO and co-founder Mark Fortunatow has an interest of 10%.
SPACETALK is a mobile phone built into a smartwatch designed just for kids from the age of 5 to 12. SPACETALK allows two-way phone calls and SMS messaging for children to a parent-controlled list of contacts; GPS tracking alerts parents whenever children leave designated safe spaces, such as school or the home.
SPACETALK doesn’t give children access to social media, apps, open internet or other such services that can be dangerous to young children. The subscription based ‘AllMyTribe’ mobile app enables parents to manage SPACETALK devices.
About SPACETALK Life
SPACETALK Life is a stylish, standalone mobile phone built into a smartwatch for seniors. SPACETALK Life keeps wearers safe, independent, and connected with their loved ones, using SOS alerts, two-way phone calls, SMS messaging and GPS location services and other advanced safety services.
Wearers’ independence and dignity are never compromised, as they are in complete control and able to decide who sees their location. The AllMyTribe App enables families to directly care for their older family members.
About MGM’s School Communication Business
MGM created the world’s first SMS based Automated Student Absence Notification Solution for schools and is recognised as a global leader in socially responsible and technology-enabled school communication. More than 1,200 schools and 1.7 million parents use MGM Wireless products including student absence notifications service ‘messageyou’, absence analytics software ‘Watchlists’, school news and messaging app ‘School Star’, a content management and messaging platform for mobile school communication called ‘Outreach+’, and student attendance management solution ‘RollMarker’.
To learn more please visit: www.mgmwireless.com San Francisco based market research company App Annie https://www.appannie.com/en/