1) Right now revenue mainly comes from the provision of the analytics software, which is sold for a one-off installation fee and on-going monthly fees. The company has flagged the ability to generate revenue through targeted advertisements, either through SMS, email or push notifications.
2) I consider the revenue to be sticky as customers use the analytics to better know their customers and how to appeal to them. The analytics could be used to assist many parts of their business, but most importantly the way they market to customers. Once SKF's analytics becomes an integral part of a customers marketing plan, it would be difficult to justify moving to an alternative or leaving altogether.
3) I don't believe this is happening yet. It is a logical area of revenue though, because SKF doesn't just collect data from one customer and keep it there. When you walk into a Westfield and first log onto the SKF system, they gather some preliminary data about you. But the SKF system registers you and you will be automatically logged on at any other SKF WiFi area. That could be an entirely different Westfield, or a GPT mall. This is why market penetration is so important for SKF. The more areas they can attach their analytics too, the more areas they can gather data about consumers. That can then be used directly by SKF if they can find a way, or to offer a better service to customers. Either way, huge potential.
4) Right now I think it is a new region, but after looking at Sprooki a bit more, it seems to be an EXTREMELY complementary product to SKF. It wouldn't surprise me if we see a CR+acquisition or some sort of merger in the future.
SKF Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
