I agree it would likely be AirAsia or Webjet. Flight Centre? (unlikely)
Whomever it is, I do expect a concrete announcement with a commitment to buy 10,000-100,000 Flexiroam X kits over a 24 month period.
The above is based on similar deals they have done in the past (have a look at their IPO Prospectus). This document provides in detail the style of agreements they like to strike, and show remarkable, transparency unlike the poster yesterday who was casting aspersions on the integrity of Asian run ASX listed entities.
Many holders have been confused by some of the quarterlies released by this company since listing (myself included), and FRX have shown a capacity to close large wholesale deals (via the large, lumpy chunks of revenue that have appeared sporadically in their 4C's). This has made it hard to establish a look through for their 'true' cash flow position., and led to some frustration for holders.
I believe this revenue has been them essentially selling wholesale SIMs at very low (perhaps negative margins).
On the face of it it seems pointless, (revenue for revenue's sake). But I think this has been important for a few reasons:
Its adds scale and wholesale buying power to their operations (mentioned in and interview with Jeff recently regarding Flexiroam X)
It demonstrates they have an ability to do deals (cough, NOR). Also, remember ZIP had a similar model to FRX "bricks & mortar" business AussieSIM, that could not achieve anywhere near the revenue success that FRX have, and continue to have in their physical operations.
Finally and most importantly, they never mentioned this massive revenue in any of their announcements. This was what has annoyed many holders, and rightly they should have just said it was just low margin wholesale revenue. By halting an announcing we know the announcement is worth something.
FRX Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
