Spacetalk is re-entering the European market in partnership with Telkom giant Elisa in Finland as part of an expansion strategy designed to generate immediate revenue in alignment with the company’s operational goals.
Spacetalk said Finland was selected as the launch point due its strong market appeal for Spacetalk’s products aligned with Elisa’s extensive distribution network.
“Our aim is to establish a scalable, replicable business model that enhances both device margins and recurring revenue,” Spacetalk said in its announcement to the ASX.
The partnership will see Spacetalk’s Adventurer 2 and Loop products becomg available in 67 Elisa stores and online, with presales already underway and the company aiming for a launch in June 2024.
As part of the agreement, Elisa will have a 12-month exclusive in the Finnish telco retail market.
The initial stock intake will be1600 Spacetalk devices with annual unit sales estimated at 5000 per annum.
“This move is not only set to generate significant hardware revenue but also provides the foundations for establishment of a steady stream of monthly recurring subscription income as product sales eventuate,” Spacetalk said.
With initial stock shipments already enroute from Spacetalk’s Australian facility to Finnish distribution centres, Spacetalk said it views expansion into Finland as a potential blueprint for further expansion into other markets.