I have copied the update and highlighted to me what the most salient points are.
DECEMBER HALF FY 2018 COMPANY UPDATE
The directors of 333D Ltd (ASX:T3D or Company) provide the following update in relation to the Company’s operations for the 6 months ended 31st December 2017.
During the period the Company set about executing initiatives integral to firmly establishing its market strategy to become Australia’s leading 3d printer for licensed merchandise and preferred vendor for 3d printing services.
Strategy The previous six months have born witness to a shift in the Company’s business model that is congruent with lessons learned about the Australian market for 3d printers and 3d printing.
Our school 3d printer proved too early for the marketplace, and as a result, we quickly redirected our focus to 1) providing high-quality, affordable 3d printing via our print services bureau and 2) developing a brandnew category of products and services related to 3d printing licensed content.
The Company built a portfolio of brands that extend these services to the market in an engaging, consumer-friendly way. 333D On Demand is our print services bureau and three additional brands – Mini League, Figurine, and Bobbled – have been launched over the past few months to help make 3d printing more accessible to a broader population of consumers.
While those who come to our print bureau may have a specific prototype or design that they need 3d printed, the vast majority of the population is amazed by the technology and its capability, but simply don’t have anything to 3d print.
We have met this challenge head-on by creating unique brands and products that leverage our 3d technology and the intrinsic value of licensed sports and entertainment brands to “meet the market where it’s at.”
Through our Mini League player collectibles, our Figurine personal replicas, and our new Bobbled bobblehead figurines, we are providing consumers with something of high personal value and significance to 3d print – and see no limit to the potential of expanding this concept. The Board is encouraged by this quarter’s results, which specifically demonstrate market interest, uptake, and, most importantly, promise of 3d printing licensed content.
We are aggressively pursuing additional licenses for sports and entertainment IP from around the world and are working to build a substantial content library of 3d printable content that already has a ready and captive consumer base and commercial platforms through which we can affordably access them.
Efforts to grow our 3d printing services bureau remain fixed on positioning our service as high-quality, affordable, and supported by the expertise and experience of our production team. The Company is becoming particularly known for 3d printing in sandstone, and is working to secure additional partnerships and contract work in this highly specialised area.
Trading Highlights Dec QTR YTD Sales Revenue*(approx.) $179k $270k Sales Channel Mini League $73k $104k Bobbled. $49k $49k 3DPAAS Bureau $52k $99k Other $5k $18k *All revenue numbers are unaudited
Licensed Content During the period the Company attained official licensee status from the Australian Football League (AFL) and Cricket Australia (CA). The associated image rights enable the Company to both develop a substantial content library of 3d images of AFL and cricket players and bespoke branded products that feature AFL and CA logos, guernsey designs, and other IP. The licensed image rights were deployed across our Mini League and Bobbled product offerings, leveraging both leagues’ captive and substantial audiences and commercial platforms. Mini League Mini League experienced strong support during the quarter as a result of Richmond’s AFL Premiership win and an active Christmas sales season.
Unique to our Premiership experience, the Company was able to showcase the versatility of our IP and speed of our manufacturing process by creating a truly unique AFL Premiership offering for Richmond fans within just 24 hours of the club’s Premiership victory. Our Dustin Martin Premiership Cup item, priced at $99, was a hit with fans who purchased the collectible figurine as a memento commemorating Richmond’s successful year and Dusty’s historic season.
While the product represented a boost in sales, it also showcased the true commercial power of product development and manufacturing based on owned 3d IP and 3d printing.
Mini League was able to do what no other AFL licensee was able to do: create a first-of-its-kind commemorative product that targeted a particular buying group, at a particular moment in time, quickly, economically and completely inventory risk-free.
To round out our Premiership experience, the Company also activated a pop-up shop (at no cost) during the Evening with Dustin Martin event held at Crown Casino in early December. The activation resulted in further sales of our range of Dustin Martin figurines, including our top-of-the-line 30cm Numbered Limited Edition figurines priced at $499, a newly launched “Don’t Argue” Dustin Martin figurine, and the Dustin Martin Premiership Cup collectible.
In late December the Company entered into a sales agreement with Infinite Retail, owned by Super Retail Group Limited. Infinite Retail holds management rights for the AFL’s official shop at www.shop.afl.com.au, Cricket Australia’s official shop located at www.shop.cricket.com.au, and a portfolio of other online and brick-and-mortar outlets. Making our products available on Infinite Retail’s platform is an important milestone that improves our reach, builds brand awareness, and serves to drive increasing sales. The Company is currently discussing additional opportunities related to expanding this relationship.
Since launching the Mini League in early September the Company has recorded revenue of approximately $104,000. This period only included the AFL Finals campaign, and our product range was limited to just 19 players. For the 2018 season, the Company has made plans with the AFL and the individual AFL Clubs to capture as many AFL players as possible before season launch. Achieving this will result in a digital player library of more than 500 individual player captures spanning the entire league of 18 AFL teams. This content is critical to the expansion of the range and is expected to yield broader appeal and substantially improved sales revenue – particularly when coupled with a sales period that encompasses the entire season and a channel strategy that includes the AFL’s official online shop.
Bobbled During the December quarter, the Company launched our new Bobbled brand, which gives people the ability to create bespoke bobblehead figurines of themselves or anyone they choose. A high margin, low cost product, bobbles are ideal for mass marketing to a broad consumer base and offer an additional opportunity for the Company to leverage its licensed IP at scale. The bobbles vary in price by size: $25 for small, $45 for medium, and $65 for large. The price-point is not only appealing to almost any consumer, but it makes it easy to amass a collection of bespoke bobbles suitable to special occasions, special people, or special affinities. Securing personal images to create the bobbles is flexible; the bobbles can be created from scans taken via our on-site activations that include a table-top facial scanner or by simply uploading a portrait-style photo on our website www.bobbled.com. This versatility creates a multi-channel sales platform that is appealing to licensing partners: on-site activations are cheap and easy and our website provides an ‘always-open’ platform ideal for hosting even the most robust libraries of licensed sports and entertainment content.
Bobbled was launched online in late November and with an accompanying pop-up shop at Chadstone Shopping Centre that operated from late November to Christmas Eve. During that time, the brand was featured on the Today Show in a segment about personalised holiday gifts and was also promoted by Dustin Martin via social media.
The range already includes officially licensed AFL and Cricket Australia designs, and we are exploring additional opportunities to create unique content that further utilises both organisations’ full portfolio of IP and full schedule of opportunities for activations. Already, Bobbled appeared as part of Cricket Australia’s Official Merchandise Shop during The Ashes, at both the Melbourne and Sydney test matches. Each event was extremely successful, generating combined revenues circa $28,000 without paying an attendance fee and while also supporting the promotion of our online shop.
Discussions are underway with both the AFL and CA for additional activations and product innovations.
About 333D Limited 333D Limited (ASX: T3D) has been established with a clear strategy to become Australia’s leading integrated multi-platform 3D technology company. Our goal is to make 3D technology accessible to everyone – which means creating a seamless, more intuitive process for converting ideas, designs, and real-life images into 3D printable objects. Our leading-edge approach unites the latest in nextgeneration digital and manufacturing technology to make 3D printing frictionless for businesses, industries, and schools. We are proud to offer Australia’s broadest range of 3D printers for on-demand contract print services, as well as exclusive access to leading 3D digital technologies that make it easy to capture, enhance, and convert real-life images into touchable 3D objects. To find out more about 333D visit: www.333D.com.au. For further enquiries please contact: John Conidi Executive Chairman +61 9646 0890 [email protected]
