Thoughts & Questions

I noticed SW1 due to the uptick in the price, read the investor presentation and have a few questions and thoughts I'd like to put out there to see if anyone else has feedback to that, especially around the idea of aged care and health where Swift think there is an opportunity for big growth.

In the mining industry, I can see why the Swift services have been popular - companies want to attract and keep the best talent and to do so, you need to provide staff with the trimmings to keep them, occupy them during down time so they don't get up to mischief, and things of that nature. The Hotels and Resorts makes obvious sense so I won't go there either. But in health (thinking hospitals) and aged care (retirement villages and the like), I'm not so sure.

I'll start with hospitals first as I have recent experience with the wife having gone in to a private hospital to have 2 kids. I won't say which but it's a reputable maternity hospital in Melbourne. TV wise, they only had free to air available and one could purchase wifi internet access - which wasn't required as just about everybody has internet access on their phone and the wife was happy to use her phone to jump on Facebook and the like. It seems that the Swift products can provide wifi access but I don't see any demand for that in the health sector due to mobile phone net access being ubiquitous.

I don't know the numbers but I would guess the purchase of wifi access in hospitals is likely trending down and probably isn't purchased much at all these days. For the shorter term stays, like a birth, what's on TV isn't even really important whther it's free to air or pay TV. We've got Foxtel at home and the missus watches a lot of it but she didn't complain once about the lack of options of what to watch.

Hospitals are always trying to cut costs which is probably why they haven't updated their TV options in decades and upgrading those things are probably least of their concerns. That is just my recent experience with what is claimed to be one of the top maternity wards in Melbourne.

Next, aged care and lifestyle villages. Baby boomers are getting old and you'd think the multitude of cashed up boomers would be good for a company like Swift but from what I've read, boomers are the types of resist going into aged care and lifestyle villages until they are much, much older. My boomer parents are in their 60s, one is retired, the other will be retiring soon but they sure as hell have no plans of going into aged care or a lifestyle village. Plus it's typical that people of my generation (Gen Y) rely on their parents to babysit the kids and I can't have them going and relaxing in a lifestyle village and watching what Swift has to offer now, can I? Seriously though, I expect my circumstances are very common and a lot of people with boomer parents rely on them for things such as babysitting. They can watch Foxtel at my place, no need to do so in a retirement village so no demand for Swift products. Again, a lot of these aged care places are also into huge cost cutting although no doubt there are premium services, I don't think you could count every single room as a potential place to sell Swift products. A lot of boomers also intend to pay for inhome care, and a lot of boomers are rich enough to afford to do so and therefore have no need for Swift's commercial offerings when they have the consumer ones like Foxtel.

Anyway, interesting investors presentation but I'm not convinced these markets will be as big as claimed due to cost cutting and the boomer generation having different plans for their retirement than what their own parents did (going into aged care).

Thoughts?