Technology company MGM Wireless (ASX: MWR) will sell its all-in-one children’s smartphone, watch and GPS tracker in the United Kingdom from April of this year, marking yet another milestone.
MGM Wireless has announced its latest round of international expansion just two months after launching the wearable Spacetalk device in New Zealand.Mark Fortunatow, founder and chief executive of MGM Wireless, says Spacetalk will be available on the UK high streets in the northern spring retail season, in the lead up to school holidays.“The UK launch is a natural step for Spacetalk,” Mr Fortunatow added.
“Months of planning, due diligence and research have gone into this exciting move of selling Spacetalk in a major English language market.”“With a population of more than 66 million people, the UK market is about three times the size of our home markets of Australia and New Zealand.”“The children’s smartwatch product is better known among UK parents than it is here. We feel we have an advantage in terms of quality, customer service in the aftermarket and a secure Spacetalk app, which really appeals to the UK market.
”Spacetalk keeps children safe by immediately connecting them with their parents in real time. It was deliberately designed and built without access to the internet and the nasties of social media.“UK parents face the same social issues with kids’ access to mobile devices and cyber bullying that we face in Australia,” Mr Fortunatow says. “Spacetalk has the solution to keeping busy parents in touch with children without the need for a mobile smartphone with access to all kinds of social media and the internet.”“At this stage, it’s too early to say with absolute confidence what our sales expectations are in the UK.”“However, our first year Australian and New Zealand sales have exceeded expectations and we have been impressed by the enthusiasm and support expressed by UK retailers and distributors.”Strong Spacetalk growthMr Fortunatow says MGM Wireless will make further announcements about UK retail partners over coming months and can speak with confidence about Australian sales since Spacetalk was launched in October 2017.MGM sold around 15,100 units up until 9 January 2019, before embarking on its back-to-school campaign.The company has sold 10,989 units in the first half of fiscal year 2019, more than 10 times the number sold in the same period last year.
Total company first half fiscal year 2019 revenues exceeded $4 million (unaudited), an increase of 154% on the same period in fiscal year 2018.“MGM has achieved stellar Spacetalk sales and trading results in the important Christmas period,” Mr Fortunatow said.“This was our first bricks and mortar Christmas and demand was difficult to forecast. We’re very pleased with the results, which were achieved despite stock levels in some stores being totally depleted, or best selling colours being sold out due to strong demand in the critical huge final sales days leading up to Christmas.”Since launching in October 2017, Spacetalk is now sold in 197 JB Hi-Fi stores across Australia and online. Leading Edge Computers sells Spacetalk in 120 outlets across Australia, and New Zealand telecommunications giant Spark sells Spacetalk in each of its 73 stores and online.MGM shares closed at $3.23 today, having risen substantially from $0.375 mark back in 21 November 2017.13
